ROSEN, SKILLED INVESTOR COUNSEL, Encourages CarMax, Inc. Investors to Secure Counsel Before Important Deadline in Securities Class Action First Filed by the Firm - KMXNovember 12, 2025 4:42 PM EST | Source: The Rosen Law Firm PANew York, New York--(Newsfile Corp. - November 12, 2025) - WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of securities of CarMax, Inc. (NYSE: KMX) between June 20, 2025 and November 5, 2025, both dates inclusive (the "Class Period") of the i ...

KMX SHAREHOLDER ALERT: BFA Law Notifies CarMax, Inc. Investors of Important January 2 Securities Class Action Deadline for Investors seeking RecoveryNovember 12, 2025 7:17 AM EST | Source: Bleichmar Fonti & AuldNew York, New York--(Newsfile Corp. - November 12, 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 ...

Core Viewpoint - The CarMax class action lawsuit alleges that the company and its executives misrepresented growth prospects, leading to significant stock price declines following disappointing financial results and executive termination announcements [3][4][5]. Group 1: Class Action Details - The class action lawsuit is titled Cap v. CarMax, Inc., and it involves purchasers of CarMax securities from June 20, 2025, to November 5, 2025 [1]. - Investors have until January 2, 2026, to seek appointment as lead plaintiff in the lawsuit [1][6]. - The lawsuit claims that CarMax overstated its growth due to temporary factors related to customer behavior influenced by tariff speculation [3]. Group 2: Financial Performance - CarMax reported a 5.4% decrease in retail unit sales and a 6.3% decrease in comparable store unit sales for the second quarter of fiscal year 2026 [4]. - Net earnings per diluted share fell to $0.64 from $0.85 a year ago, contributing to a 20% drop in share price following the announcement [4]. - On November 6, 2025, CarMax announced the termination of CEO William D. Nash and projected a significant decline in used car sales, resulting in a further 24% drop in share price [5]. Group 3: Legal Process - The Private Securities Litigation Reform Act of 1995 allows any investor who purchased CarMax securities during the class period to seek lead plaintiff status [6]. - The lead plaintiff represents the interests of all class members and can choose a law firm for litigation [6]. Group 4: Law Firm Background - Robbins Geller Rudman & Dowd LLP is a leading law firm in securities fraud and shareholder litigation, having secured over $2.5 billion for investors in 2024 alone [7]. - The firm has a strong track record, including the largest securities class action recovery in history at $7.2 billion [7].

Core Insights - CarMax, Inc. is one of the largest retailers of used vehicles in the U.S. with a market cap of $4.5 billion, operating through Sales Operations and Auto Finance segments [1] Performance Overview - CarMax has significantly underperformed the broader market, with stock prices declining 58.2% year-to-date and 55.5% over the past 52 weeks, while the S&P 500 Index returned 16.4% in 2025 and 14.1% over the past year [2] - The company also lagged behind the Consumer Discretionary Select Sector SPDR Fund, which saw a 6.8% increase in 2025 and 9.2% gains over the past 52 weeks [3] Q2 Results - Following the release of Q2 results on September 25, CarMax's stock prices experienced a marginal dip, with retail used unit sales dropping 5.4%, comparable store used unit sales declining 6.3%, and wholesale units dipping 2.2% [4] - The average selling prices also saw a slight decrease, leading to a topline of $6.6 billion, down 6% year-over-year and 6.5% below Street expectations [4] - Earnings per share (EPS) plunged 24.7% year-over-year to $0.64, missing consensus estimates by 37.9% [4] Future Expectations - For the full fiscal 2026, analysts expect CarMax to deliver an adjusted EPS of $3.15, reflecting a 3.7% year-over-year decline [5] - The company has a mixed earnings surprise history, missing bottom-line estimates once in the past four quarters while meeting or surpassing projections on three occasions [5] Analyst Ratings - Among 19 analysts covering CarMax, the consensus rating is a "Hold," consisting of two "Strong Buys," 13 "Holds," one "Moderate Sell," and three "Strong Sells" [5] - The current consensus is notably pessimistic compared to two months ago when the stock had a "Moderate Buy" rating [6] - Morgan Stanley analyst downgraded CarMax from "Overweight" to "Equal-weight" and lowered the price target from $56 to $35 [6]

Group 1 - Barclays analyst John Babcock indicates investment opportunities in the automotive dealership sector due to expected profit growth in fiscal year 2026 and a recent decline in valuations [1] - The automotive retail industry is rated as "neutral," but certain companies show potential for above-average performance due to strong growth trends and resilience in adverse economic cycles [1] - Demand for used cars in the U.S. is weak, and auto credit data shows a decrease in demand in the subprime market [1] Group 2 - Companies rated "buy" include Carvana (CVNA.US) for its investment in optimizing online purchasing experience, while CarMax (KMX.US) is rated "sell" due to inconsistent operational performance and potential higher-than-expected loan loss reserves [1] - In the new and used car dealership segment, companies rated "buy" include AutoNation (AN.US), Group 1 Automotive (GPI.US), Lithia Motors (LAD.US), and Penske Automotive (PAG.US) based on strong same-store sales growth and stable operational performance [2] - Asbury Automotive (ABG.US) and Sonic Automotive (SAH.US) are rated "hold" [2]

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against CarMax, Inc. related to a federal securities class action lawsuit, with a lead plaintiff deadline set for January 2, 2026 [2][5]. Group 1: Legal Proceedings - A federal securities class action has been filed against CarMax, alleging violations of federal securities laws due to false and misleading statements regarding the company's growth prospects [5]. - The lawsuit claims that CarMax's earlier growth was overstated and was primarily driven by temporary factors, such as customer speculation regarding tariffs [5]. - Investors are encouraged to contact Faruqi & Faruqi if they suffered losses in CarMax between June 20, 2025, and September 24, 2025, to discuss their legal rights [1][2]. Group 2: Financial Performance - CarMax reported a significant decrease in income from CarMax Auto Finance, with an 11.2% decline attributed to a $142.2 million provision for loan losses in the second quarter of fiscal 2026, compared to $112.6 million in the same period the previous year [6]. - The provision for loan losses included an increase of $71.3 million in estimated lifetime losses on existing loans, primarily due to worsening performance among the 2022 and 2023 vintages [7]. - Following the release of these financial results, CarMax's stock price fell by $11.45 per share, approximately 20%, closing at $45.60 per share on September 26, 2025 [7].

Core Insights - CarMax, Inc. is a leading retailer of used vehicles in the U.S., operating through two segments: CarMax Sales Operations and CarMax Auto Finance (CAF) [1] - The company is currently under investigation for allegedly misleading investors regarding its growth prospects, particularly related to unsustainable growth in fiscal 2026 [2][6] Financial Performance - CarMax reported an 11.2% decrease in income from CAF in the second quarter of fiscal 2026, attributed to a provision for loan losses of $142.2 million, an increase from $112.6 million the previous year [3][6] - The provision included $71.3 million in estimated lifetime losses on existing loans and $70.9 million for current quarter originations [3] Stock Market Reaction - Following the financial disclosure, CarMax's stock price fell by approximately 20%, closing at $45.60 on September 26, 2025 [4][6] - As of the latest data, CarMax's stock is trading at $34.20, with a market capitalization of $5.21 billion and a trading volume of 2,735,900 shares [5]

Core Viewpoint - CarMax, Inc. is facing a class action lawsuit due to allegations of misleading investors about its growth prospects for fiscal year 2026, particularly following disappointing financial results for the second quarter [1][2][3]. Summary by Sections Company Overview - CarMax, Inc. is identified as the largest retailer of used vehicles in the United States [1]. Class Action Details - A class action was filed on behalf of investors who purchased CarMax securities between June 20, 2025, and September 24, 2025, alleging that the company misrepresented its growth potential [1]. - Shareholders interested in serving as lead plaintiffs must submit their papers by January 2, 2026 [4]. Allegations and Financial Impact - The lawsuit claims that CarMax overstated its growth prospects, attributing earlier growth to temporary factors such as customer speculation regarding tariffs [3]. - Following the release of disappointing financial results on September 25, 2025, CarMax's stock price dropped by $11.5 per share, or 20.07%, closing at $45.60, with an additional decline of 1.62% the following day [2].

Core Viewpoint - Rosen Law Firm has filed a class action lawsuit on behalf of CarMax, Inc. investors for securities purchased between June 20, 2025, and November 5, 2025, due to alleged misleading statements regarding the company's growth prospects [2][6] Group 1: Lawsuit Details - The class action lawsuit claims that CarMax's defendants overstated the company's growth prospects, attributing earlier growth in the 2026 fiscal year to temporary factors related to customer behavior influenced by tariff speculation [6] - Investors are encouraged to join the class action without incurring out-of-pocket fees through a contingency fee arrangement [3] Group 2: Next Steps for Investors - Interested investors can join the CarMax class action by visiting the provided link or contacting the law firm directly [4][7] - A lead plaintiff must file a motion with the court by January 2, 2026, to represent other class members [4] Group 3: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved significant settlements, including the largest securities class action settlement against a Chinese company at the time [5] - The firm has consistently ranked highly in securities class action settlements and has recovered hundreds of millions of dollars for investors [5]

NEW YORK, Nov. 11, 2025 (GLOBE NEWSWIRE) -- Levi & Korsinsky, LLP notifies investors in CarMax, Inc. ("CarMax, Inc." or the "Company") (NYSE: KMX) of a class action securities lawsuit. CLASS DEFINITION: The lawsuit seeks to recover losses on behalf of CarMax, Inc. investors who were adversely affected by alleged securities fraud between June 20, 2025 and September 24, 2025. Follow the link below to get more information and be contacted by a member of our team: https://zlk.com/pslra-1/carmax-inc-lawsuit-subm ...