Investment Manager Ditches CarMax Stock Amid Market Concerns

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].