CarMax, Inc. (NYSE:KMX) Faces Potential Downside and Legal Challenges

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, known for no-haggle pricing and comprehensive vehicle inspections [1] - The company is currently facing a class action securities lawsuit alleging securities fraud, which could impact investor sentiment and stock performance [3] - Evercore ISI has set a price target of $37 for CarMax, indicating potential downside from its current trading price of $39.26, which reflects a 5.76% premium over the target [2][5] - The stock has shown significant volatility, with a 52-week high of $91.25 and a low of $30.26, indicating active trading and investor interest [4][5] - CarMax's market capitalization is approximately $5.98 billion, with a trading volume of 3,230,319 shares on the NYSE [4]