Core Insights - CarMax, Inc. reported significant declines in revenue and profit for the second quarter of fiscal year 2026, with a revenue decrease of 6.0%, a 7.2% drop in total retail used vehicle revenues, and a 5.6% decline in total gross profit [2] - Following the financial results announcement, CarMax's stock price fell by $11.45 per share, approximately 20%, closing at $45.60 on September 25, 2025, down from $57.05 the previous day [2] Company Investigation - Kessler Topaz Meltzer & Check, LLP is investigating potential violations of federal securities laws on behalf of CarMax investors [1][3] - The law firm has a history of prosecuting class actions related to securities fraud and has recovered billions for investors [3]

Core Viewpoint - Diamond Hill Capital's "Select Fund" underperformed the Russell 3000 Index in Q3 2025, returning 4.98% compared to the index's 8% gain [1] Company Summary: CarMax, Inc. (NYSE:KMX) - CarMax, Inc. reported a one-month return of -7.78% and a 52-week decline of 42.66%, closing at $42.46 per share with a market capitalization of $6.235 billion on October 29, 2025 [2] - The company experienced a significant slowdown in used retail vehicle sales and increased credit-loss provisions, attributed to consumers pulling forward purchases ahead of tariffs, leading to a recent industry lull [3] - Despite current challenges, the management team is focused on improving efficiencies and increasing spending on consumer-facing initiatives, indicating potential for long-term market share growth [3] Financial Performance - CarMax reported total sales of $6.6 billion in fiscal Q2 2026, reflecting a 6% decline from the previous year due to lower sales volume [4] - The company was a material detractor to Vulcan Value Partners' performance in Q3 2025, highlighting its struggles in the current market environment [5]

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of CarMax, Inc. due to allegations of materially misleading business information issued by the company [1]. Financial Performance - CarMax reported earnings per share (EPS) of $0.64 on $6.6 billion in sales for the second quarter of its 2026 fiscal year, significantly below consensus estimates of EPS of $1.03 on $7 billion in sales [4]. - The CEO described the quarter as "challenging" and announced a plan to cut selling, general, and administrative spending by $150 million over the next 18 months [4]. Stock Market Reaction - Following the disappointing financial results, CarMax's stock price fell by $11.5 per share, or 20.07%, closing at $45.60 per share on September 25, 2025 [5]. Legal Action - Rosen Law Firm is preparing a class action lawsuit seeking recovery of investor losses, allowing affected shareholders to join without any out-of-pocket fees through a contingency fee arrangement [2]. - Interested investors can join the prospective class action by submitting a form or contacting the firm directly [3]. Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved significant settlements and recognition in the field [6].

Layoff - CarMax 正在裁减数百名客户体验中心员工 [1] - 裁员发生在该二手车零售商令华尔街失望的疲软收益发布大约一个月后 [1] Company Performance - CarMax 的业绩表现不佳，令华尔街失望 [1]

Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against CarMax, Inc. for possible violations of federal securities laws and unlawful business practices affecting stockholders [1][2]. Investigation Details - The investigation is focused on whether CarMax has engaged in practices that may have harmed investors, particularly in light of recent financial disclosures [1][2]. Financial Performance - On April 10, 2025, CarMax reported its fourth quarter and fiscal year 2025 results, missing consensus estimates and removing long-term revenue, unit sales, and market share goals due to macroeconomic factors, leading to a stock price drop of $13.61 (17%) to $66.45 per share [6]. - On September 25, 2025, CarMax disclosed significant year-over-year declines in revenue and profit, including a 6.0% revenue decline, a 7.2% decline in total retail used vehicle revenues, and a 5.6% decline in total gross profit, attributed to inventory adjustments and a $71.3 million increase in loan loss provisions, causing shares to fall by $11.45 (20.1%) to $45.60 per share [6].

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of CarMax, Inc. due to allegations of materially misleading business information issued by the company [1] Group 1: Investigation Details - The investigation is focused on whether CarMax may have misled the investing public regarding its business information [1] - Shareholders who purchased CarMax securities may be entitled to compensation through a contingency fee arrangement, meaning no out-of-pocket fees or costs are required [1]

Group 1 - Major U.S. equities indexes reached new intraday highs, driven by strong corporate earnings and the commencement of the Federal Reserve's two-day meeting [6][5] - United Parcel Service (UPS) shares surged following the company's strong quarterly results, indicating successful turnaround efforts [2][6] - Sherwin-Williams (SHW) emerged as the best-performing stock in the Dow after exceeding analysts' earnings estimates for the third quarter [2] Group 2 - PayPal (PYPL) stock experienced a significant increase after announcing a partnership with OpenAI to integrate its digital wallet into ChatGPT for purchases [2] - F5 (FFIV) shares declined due to a soft outlook, as the company anticipates disruptions in sales cycles following a recent cybersecurity incident [3] - Royal Caribbean Cruises (RCL) shares fell after reporting quarterly revenue that did not meet analysts' expectations [3][6]

Core Insights - CarMax, Inc. is currently under investigation for potential violations of federal securities laws following a significant decline in its financial performance [1][2] Financial Performance - For the second quarter of fiscal year 2026, CarMax reported a revenue decline of 6.0% year over year [2] - Total retail used vehicle revenues decreased by 7.2% [2] - Total gross profit fell by 5.6% [2] - Following the financial results announcement, CarMax's stock price dropped by $11.45 per share, approximately 20%, from $57.05 on September 24, 2025, to $45.60 on September 25, 2025 [2]

Core Viewpoint - CarMax, Inc. is under investigation for potential violations of federal securities laws, following disappointing financial results and claims regarding its assessment of car loan risks [1][2]. Financial Performance - CarMax reported 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 for Q2 of fiscal year 2026 [4]. - The company's net earnings for Q2 were approximately $95.4 million, down from $132.8 million in the previous year [4]. - A significant factor for the declines was identified as a "pull forward" in demand due to U.S. tariffs, which led to a loan loss provision of $142.2 million in the financing segment, resulting in an 11.2% year-over-year decrease in income from this segment [4]. Stock Market Reaction - Following the announcement of its disappointing financial results, CarMax's stock price fell by $11.45 per share, approximately 20%, from $57.05 on September 24, 2025, to $45.60 on September 25, 2025 [5]. Investigation Context - The investigation stems from claims that CarMax misrepresented the sustainability of demand for its vehicles and failed to properly assess the risks associated with its car loans [2][3].

Core Insights - CarMax, Inc. is identified as an oversold mid-cap stock with potential buying interest from hedge funds despite recent challenges [1] - Morgan Stanley has lowered its price target for CarMax from $80 to $56 while maintaining an Overweight rating, indicating a cautious outlook [1][3] - The firm highlighted execution risks related to CarMax's omni-channel strategy, particularly in integrating digital and physical sales amid increasing competition, especially from Carvana [2] Company Performance - CarMax's stock has recently fallen to an all-time low due to disappointing Q2 earnings, reflecting investor concerns over the normalization of the used-car market [3] - Despite the downgrade, Morgan Stanley recognizes CarMax's fundamental strengths, suggesting that the path to realizing these strengths may be more challenging than previously anticipated [3] - The stock has exhibited volatility, influenced by uncertainties regarding CarMax's ability to scale its hybrid model without further margin erosion [4] Market Position - CarMax is the largest used-vehicle retailer in the U.S., operating over 240 stores and a growing online platform that supports a no-haggle, customer-centric sales model [5]