Core Viewpoint - The commentary on America's Car-Mart, Inc. (NASDAQ: CRMT) maintains a cautious stance on the US automotive retailer, indicating concerns about its stock performance and market conditions [1]. Group 1: Investment Strategy - The investment approach focuses on acquiring undervalued, profitable stocks with strong balance sheets and minimal debt [1]. - The strategy includes writing calls against positions to generate additional income when opportunities arise [1]. - Risk management is emphasized through position sizing and the use of trailing stop losses over time [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 - Morgan Stanley has reduced its price target on CarMax shares but still sees potential for upside despite the competitive pressure from Carvana [1] Company Summary - CarMax's shares have been downgraded by Morgan Stanley, indicating a cautious outlook on the company's stock performance [1] - Despite the price target cut, Morgan Stanley believes that CarMax has opportunities for growth in the market [1] Industry Summary - The used car market is experiencing increased competition, particularly from Carvana, which poses challenges for CarMax [1] - The competitive landscape is evolving, and companies in the used car sector must adapt to maintain market share [1]

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INVESTIGATION DETAILS: The investigation focuses on whether the Company issued misleading statements and/or failed to disclose information pertinent to investors. CarMax reported disappointing financial results for Q2 2025 on September 25, 2025. The Company reported a 6.3% drop in comparable store used unit sales, and a decline in net earnings for the quarter. CarMax shares fell roughly 20% in response to its disappointing results. Accessibility StatementSkip Navigation If you are a shareholder who suffered ...

Core Viewpoint - CarMax, Inc. is under investigation for potential violations of federal securities laws, following a significant decline in sales and earnings attributed to a temporary demand spike due to U.S. tariffs on cars [1][2][3]. Group 1: Investigation Details - Bleichmar Fonti & Auld LLP is leading the investigation into CarMax for possible securities law violations [1]. - The investigation is prompted by discrepancies between CarMax's claims of strong demand and the reality of declining sales following the announcement of tariffs [2]. Group 2: Financial Performance - In fiscal Q2 2025, 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 [3]. - The company's net earnings for Q2 were approximately $95.4 million, down from $132.8 million in the previous year, indicating a significant drop in profitability [3]. - Following the earnings report, CarMax's stock price fell by $11.45 per share, or about 20%, from $57.05 to $45.60 [3].

Photo by jetcityimage via iStock With a post-pandemic stallout far in the rearview mirror, Carvana is finally locked into top gear. Shares of the online used car dealer — already up some 90% year-to-date — popped even more on Wednesday after Jefferies analysts upgraded its stock rating to buy from hold. READ ALSO: Tesla Grabs One for the Road With Windfall from Expiring EV Tax Credit and Unchained Melodies? Recording Giants Finetune Deals for Sharing Music Libraries With AI Drive to Survive 2025 has prov ...

Core Insights - CarMax (KMX) shares have dropped by 23% in the past five trading days, reaching approximately $44 per share, and are down over 40% year-to-date, indicating potential undervaluation [3][4] - The company has a robust business model with an extensive national store network and an expanding digital presence, providing network effects that smaller rivals cannot replicate [4] - The recent decline in stock price is attributed to unexpectedly weak Q2 FY'26 results, with revenues decreasing by 6% year-over-year to $6.59 billion and earnings per share falling to $0.64 from $0.85 [5] - The fundamental outlook for CarMax appears bleak, with revenues decreasing at an average rate of -7.4% over the last three years, contrasting with the S&P 500's growth of 5.3% [6] - Financial stability is a concern, as CarMax carries $19 billion in debt against a market cap of $6.7 billion, resulting in a high debt-to-equity ratio of 286% [6] - Potential positive developments include anticipated interest rate cuts that could positively impact the used car market and aggressive cost management strategies that may bolster profitability [7]

Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against America's Car-Mart, Inc. regarding possible violations of federal securities laws and unlawful business practices affecting stockholders [1][2]. Investigation Details - The investigation is focused on whether Car-Mart has engaged in unlawful business practices that may have harmed investors [1][2]. - Investors who have suffered losses and are interested in discussing their legal rights are encouraged to contact the law firm [3]. Company Performance and Stock Impact - On July 15, 2025, Car-Mart announced a delay in filing its annual report due to the need for enhanced disclosures related to loan modifications, resulting in a stock price drop of $3.12 (5.2%) to close at $57.26 [5]. - On July 30, 2025, Car-Mart disclosed that certain previously issued financial statements were no longer reliable, leading to a further stock price decline of $3.70 (7.5%) to close at $45.57 [5]. - On September 4, 2025, Car-Mart reported a 5.7% decline in sales volumes, causing its stock price to fall by $8.14 (18.2%) to close at $36.51 [5].

Core Viewpoint - Carvana's stock has experienced significant growth, trading over $375 per share, up from below $4 in December 2022, following an upgrade from Jeffre [1][3][4] Company Performance - Carvana shares are currently trading at approximately $387.62, reflecting a 3% increase after the upgrade [3] - Jeffre upgraded Carvana from "buy" to "hold" with a new price target of $475, an increase of nearly 25% from the previous target of $385 [3][4] Market Position - Carvana currently holds about 2% of the U.S. used car market, indicating substantial room for growth as consumer preferences shift towards online purchasing [5][6][7] - A survey indicated that one-third of U.S. adults prefer to buy or sell vehicles online, supporting the belief that Carvana is well-positioned to capture more market share [6][7] Financial Projections - Jeffre raised its 2027 revenue and EBITDA estimates for Carvana by 15% and 12% above consensus estimates, respectively, based on consumer surveys and proprietary analysis [5] - The new price target implies a 28 times EV/EBITDA multiple on the 2027 estimates, reflecting a 25% premium to growth-adjusted multiples [5]