Core Viewpoint - Hutchinson Capital Management has completely exited its position in CarMax, liquidating approximately $9.96 million worth of shares during the third quarter of 2025, indicating a significant shift in investment strategy towards the company [1][2][7]. Company Overview - CarMax, Inc. operates a nationwide network of stores providing a wide range of automotive products and services, including in-house financing and vehicle repair services [6]. - The company's revenue for the trailing twelve months (TTM) is reported at $27.79 billion, with a net income of $521.07 million [4]. Financial Performance - As of November 11, 2025, CarMax shares were priced at $34.14, reflecting a one-year price decline of 55.54% [3][4]. - The company's stock has underperformed the S&P 500 by 69 percentage points over the past year [3]. Market Challenges - CarMax is facing significant challenges, including a 6% year-over-year decline in revenue over the past three years, attributed to macroeconomic weakness and reduced demand for used cars [14]. - Increased competition from online-first competitors like Carvana has further pressured CarMax's market share [14]. - Higher interest rates have led to increased monthly payments for consumers, causing them to retain their existing vehicles longer, which negatively impacts CarMax's sales [14].

CARMAX STOCK ALERT: CarMax, Inc. (KMX) Investors Reminded to Contact BFA Law Prior to the January 2 Deadline in Securities Fraud Class ActionDecember 03, 2025 3:36 PM EST | Source: Bleichmar Fonti & AuldNew York, New York--(Newsfile Corp. - December 3, 2025) - Leading securities law firm Bleichmar Fonti & Auld LLP announces that a class action lawsuit has been filed against CarMax, Inc. (NYSE: KMX) and certain of the Company's senior executives for securities fraud after a significant stock dr ...

Partner Reed Kathrein Scrutinizing Undisclosed Business Weakness Preceding Dual Stock Crashes Totaling Over 44%SAN FRANCISCO,Dec. 3, 2025/PRNewswire/ -- National shareholder rights law firm**Hagens Berman**reminds investors that the deadline to move the Court for appointment as lead plaintiff in the securities class action lawsuit against**CarMax, Inc. (NYSE:[KMX](#financial-modal))**is**January 2, 2026**.The lawsuitallegesthat CarMax and its executives provided materially false and misleading information b ...

Core Viewpoint - A class action lawsuit has been filed against CarMax, Inc. and certain senior executives for securities fraud following a significant stock drop attributed to potential violations of federal securities laws [1][2]. Group 1: Lawsuit Details - Investors have until January 2, 2026, to request to lead the case, which is pending in the U.S. District Court for the District of Maryland [2]. - The lawsuit asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of CarMax investors [2]. Group 2: Company Performance and Stock Impact - CarMax reported disappointing financial results for Q2 FY 2026, including a 5.4% decline in retail used unit sales, a 6.3% decline in comparable store used unit sales, and a 2.2% decline in wholesale units [5]. - The company's net income for Q2 was approximately $95.4 million, down from $132.8 million the previous year, attributed to a "pull forward" in demand due to U.S. tariffs [5]. - Following the financial report, CarMax's stock dropped $11.45 per share, or roughly 20%, from $57.05 on September 24, 2025, to $45.60 on September 25, 2025 [6]. - An unexpected departure of CEO Bill Nash on November 6, 2025, and a weak preliminary Q3 2025 outlook led to an additional stock drop of over 24% [6]. Group 3: Company Background - CarMax is a leading retailer of used cars, emphasizing a strong customer experience and sustainable demand [3]. - The firm Bleichmar Fonti & Auld LLP, known for representing plaintiffs in securities class actions, is handling the lawsuit against CarMax [10].

Core Viewpoint - The lawsuit against CarMax, Inc. alleges that the company misled investors by presenting unsustainable growth as robust and failing to disclose significant risks in its loan portfolio [2][4]. Group 1: Allegations and Legal Context - The lawsuit claims that CarMax executives provided materially false information regarding the company's growth, which was attributed to a temporary "pull forward" of customer demand [2][3]. - The investigation is focused on whether CarMax prioritized short-term optics over transparency, particularly regarding a one-time tariff event that influenced reported growth [3]. - The complaint highlights a significant increase in the loan loss provision for the CarMax Auto Finance (CAF) portfolio, indicating potential undisclosed weaknesses in the business [3][4]. Group 2: Impact on Stock Price - Following the Q2 2026 earnings report, CarMax's stock fell by 20%, with comparable unit sales down by 6.3%, revealing misrepresentation of demand sustainability [5]. - The departure of the CEO and weak Q3 guidance led to a 24% drop in stock price, further indicating undisclosed business weaknesses [5]. - An increase of $142 million in the loan loss provision for the CAF portfolio was reported, suggesting misrepresentation of the quality and risk associated with the loan portfolio [5]. Group 3: Investor Actions and Next Steps - Investors who purchased CarMax securities between June 20, 2025, and November 5, 2025, are encouraged to contact the law firm for potential claims related to significant losses [5][6]. - The deadline for investors to move the court for appointment as lead plaintiff is January 2, 2026 [1][7]. - Hagens Berman has a history of securing substantial settlements for investors, totaling over $325 billion [6].

Core Viewpoint - CarMax, Inc. is facing a class action lawsuit for securities fraud following a significant drop in its stock price, attributed to alleged violations of federal securities laws [2][4]. Group 1: Lawsuit Details - A class action lawsuit has been filed against CarMax and certain senior executives, asserting claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 [4]. - Investors have until January 2, 2026, to request to lead the case, which is pending in the U.S. District Court for the District of Maryland [4]. Group 2: Financial Performance - CarMax reported disappointing financial results for Q2 of fiscal year 2026, with a 5.4% decline in retail used unit sales, a 6.3% decline in comparable store used unit sales, and a 2.2% decline in wholesale units [7]. - The company's net income for Q2 was approximately $95.4 million, down from $132.8 million in the previous year [7]. Group 3: Stock Price Impact - Following the announcement of disappointing financial results on September 25, 2025, CarMax's stock price dropped by $11.45 per share, or roughly 20%, from $57.05 to $45.60 [8]. - The unexpected departure of CEO Bill Nash on November 6, 2025, along with a weak preliminary Q3 outlook, led to an additional stock price drop of over 24% [8]. Group 4: Market Context - CarMax had previously promoted strong demand for its vehicles, which was allegedly boosted by a short-term increase in purchases due to U.S. tariffs on cars [5]. - The lawsuit also investigates whether CarMax properly assessed or reserved for its portfolio of car loans following the CEO's departure [6].

Core Viewpoint - A class action lawsuit has been filed against CarMax, Inc. for violations of the Securities Exchange Act, alleging that the company made false and misleading statements regarding its growth prospects during a specific period [1][2]. Group 1: Lawsuit Details - The class period for the lawsuit is from June 20, 2025, to September 24, 2025, with a deadline for lead plaintiff appointments set for January 2, 2026 [2]. - The complaint claims that CarMax's optimistic growth statements were misleading, as the company's recent growth was influenced by customer speculation regarding tariffs on vehicle purchases [2]. Group 2: Shareholder Participation - Shareholders who purchased shares during the class period are encouraged to contact the law firm for potential lead plaintiff appointments, although this is not necessary to participate in any recovery [2][3]. - Once registered, shareholders will receive updates through a portfolio monitoring software at no cost [3]. Group 3: Law Firm Background - DJS Law Group specializes in securities class actions and corporate governance litigation, focusing on enhancing investor returns through advocacy [4]. - The firm represents large hedge funds and alternative asset managers, emphasizing the value of litigation claims as significant assets [4].

Accessibility StatementSkip Navigation KMX investors may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (212) 363-7500. CASE DETAILS: The filed complaint alleges that defendants made false statements and/or concealed that: (1) defendants recklessly overstated CarMax's growth prospects when, in reality, its earlier growth in the 2026 fiscal year was a temporary benefit from customers buying cars due to speculation regarding tariffs; and (2) as a result, defendants' st ...

Core Viewpoint - A class action securities lawsuit has been filed against CarMax, Inc. alleging securities fraud that affected investors between June 20, 2025, and November 5, 2025 [1][2] Group 1: Allegations - The lawsuit claims that defendants made false statements regarding CarMax's growth prospects, suggesting that earlier growth was a temporary benefit due to customer speculation about tariffs [2] - It is alleged that the statements made by defendants about CarMax's business operations and prospects were materially false and misleading, lacking a reasonable basis [2] Group 2: Legal Process - Investors who suffered losses during the specified timeframe have until January 2, 2026, to request to be appointed as lead plaintiff, although participation in any recovery does not require serving as a lead plaintiff [3] - Class members may be entitled to compensation without any out-of-pocket costs or fees, with no obligation to participate [3] Group 3: Law Firm Background - Levi & Korsinsky has a history of securing hundreds of millions of dollars for shareholders and has been recognized as one of the top securities litigation firms in the United States for seven consecutive years [4]

Core Viewpoint - CarMax, Inc. is facing a class action lawsuit for securities fraud following a significant drop in stock price attributed to misleading statements regarding demand and financial performance [2][4][5]. Group 1: Lawsuit Details - A class action lawsuit has been filed against CarMax and its senior executives for securities fraud, with claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 [4]. - Investors have until January 2, 2026, to request to lead the case, which is pending in the U.S. District Court for the District of Maryland [4]. - The lawsuit alleges that CarMax misled investors about the sustainability of demand for its vehicles, particularly in light of U.S. tariffs that temporarily boosted sales [5]. Group 2: Financial Performance - CarMax reported disappointing financial results for Q2 of fiscal year 2026, including a 5.4% decline in retail used unit sales, a 6.3% decline in comparable store used unit sales, and a 2.2% decline in wholesale units [7]. - The company's net income for Q2 was approximately $95.4 million, down from $132.8 million in the previous year [7]. - The decline in sales was attributed to a "pull forward" in demand due to the announcement of tariffs, which led to a significant stock price drop of $11.45 per share, or roughly 20% [8]. Group 3: Executive Changes - The unexpected departure of CEO Bill Nash on November 6, 2025, has raised concerns about the company's management and its assessment of car loan portfolios [6]. - Following the announcement of Nash's departure and a weak preliminary Q3 outlook, CarMax's stock dropped over 24% [8].