25,040 Shares in CarMax, Inc. $KMX Acquired by Freestone Capital Holdings LLC

Key Points

• Freestone Capital opened a new position in CarMax of 25,040 shares (≈$968,000) in Q4, joining other institutional buyers (Arrowstreet, Vulcan, Dimensional) that materially increased stakes.
• CarMax beat on non‑GAAP EPS ($0.34 vs. $0.18) and revenue ($5.95B vs. $5.65B) but recorded a GAAP loss after a $141M goodwill impairment, prompting management to pull guidance and shares to drop about 15.1%.
• Analysts are mixed-to-negative: MarketBeat shows a consensus rating of "Reduce" with an average target of $39.93, while new CEO Keith Barr has launched a tech‑focused strategic review targeting a multi‑quarter turnaround.

Freestone Capital Holdings LLC acquired a new position in CarMax, Inc. (NYSE:KMX - Free Report) during the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund acquired 25,040 shares of the company's stock, valued at approximately $968,000.

A number of other hedge funds and other institutional investors also recently made changes to their positions in KMX. Arrowstreet Capital Limited Partnership lifted its stake in shares of CarMax by 73.7% in the third quarter. Arrowstreet Capital Limited Partnership now owns 3,522,923 shares of the company's stock worth $158,074,000 after acquiring an additional 1,494,205 shares during the period. Vulcan Value Partners LLC lifted its stake in shares of CarMax by 135.2% in the third quarter. Vulcan Value Partners LLC now owns 2,328,120 shares of the company's stock worth $104,569,000 after acquiring an additional 1,338,134 shares during the period. Hawk Ridge Capital Management LP acquired a new position in shares of CarMax in the third quarter worth approximately $43,702,000. Dimensional Fund Advisors LP lifted its stake in shares of CarMax by 33.2% in the third quarter. Dimensional Fund Advisors LP now owns 3,685,201 shares of the company's stock worth $165,358,000 after acquiring an additional 918,553 shares during the period. Finally, Worldquant Millennium Advisors LLC lifted its stake in shares of CarMax by 222.2% in the second quarter. Worldquant Millennium Advisors LLC now owns 853,964 shares of the company's stock worth $57,395,000 after acquiring an additional 588,901 shares during the period.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on KMX shares. Evercore set a $45.00 price objective on CarMax in a research note on Friday. Barclays lifted their price objective on CarMax from $24.00 to $28.00 and gave the stock an "underweight" rating in a research note on Wednesday, January 21st. Stephens lifted their target price on CarMax from $39.00 to $43.00 and gave the stock an "equal weight" rating in a report on Thursday, April 2nd. JPMorgan Chase & Co. lowered their target price on CarMax from $30.00 to $28.00 and set an "underweight" rating for the company in a report on Friday, December 19th. Finally, Wedbush lowered their target price on CarMax from $40.00 to $36.00 and set a "neutral" rating for the company in a report on Friday, December 19th. One equities research analyst has rated the stock with a Buy rating, twelve have given a Hold rating and five have assigned a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Reduce" and an average target price of $39.93.

Key Stories Impacting CarMax

Here are the key news stories impacting CarMax this week:

• Positive Sentiment: Adjusted earnings and revenue beat consensus (non‑GAAP EPS $0.34; revenue ~$5.95B), showing the core business still generates cash despite headwinds. CarMax Non‑GAAP EPS Beats
• Positive Sentiment: New CEO Keith Barr is prioritizing technology to streamline buying/selling and has launched a strategic review — management is signaling a multi-quarter turnaround plan rather than a quick fix. CarMax Bets on Tech to Streamline Used Car Buying Journey
• Positive Sentiment: Analysts/notes point to early signs of volume stabilization, suggesting demand may bottom before margins recover — supports a cautious recovery thesis for patient investors. TipRanks: Early Signs of Volume Improvement
• Neutral Sentiment: The full earnings call transcript and slide deck are available for deeper read-through of guidance, inventory and reserve assumptions. Q4 Earnings Call Transcript
• Neutral Sentiment: Activist investor pressure and a recent leadership change frame results — could drive strategic moves but adds near-term execution risk. Benzinga: Q4 Preview — Activist Heat
• Negative Sentiment: GAAP net loss driven by a $141M goodwill impairment flagged a material non‑recurring hit and contributed to the negative market reaction. Reuters: CarMax Posts Quarterly Loss
• Negative Sentiment: Widening margin pressure: CarMax cut prices to stimulate demand, which weighed on gross profit per used unit and failed to fully restore sales, hitting near‑term profitability. WSJ: CarMax Swings to Loss After Cutting Prices
• Negative Sentiment: Higher credit provisioning (loan‑loss reserves) and cautious FY27 guidance increase uncertainty on earnings durability; several analysts kept neutral/hold stances or lowered targets, amplifying selling pressure. QuiverQuant: Slides After Q4 GAAP Loss

CarMax Trading Down 15.1%

Shares of KMX stock opened at $41.69 on Wednesday. The company has a market cap of $5.91 billion, a P/E ratio of 13.76, a PEG ratio of 1.29 and a beta of 1.30. The stock has a 50 day simple moving average of $43.00 and a two-hundred day simple moving average of $41.98. The company has a debt-to-equity ratio of 2.74, a quick ratio of 0.51 and a current ratio of 1.99. CarMax, Inc. has a fifty-two week low of $30.26 and a fifty-two week high of $71.99.

CarMax (NYSE:KMX - Get Free Report) last issued its earnings results on Tuesday, April 14th. The company reported $0.34 earnings per share for the quarter, topping analysts' consensus estimates of $0.18 by $0.16. The business had revenue of $5.95 billion during the quarter, compared to the consensus estimate of $5.65 billion. CarMax had a return on equity of 7.72% and a net margin of 1.77%.The firm's revenue for the quarter was down 1.0% on a year-over-year basis. During the same period in the previous year, the company posted $0.58 earnings per share. Research analysts forecast that CarMax, Inc. will post 3.23 earnings per share for the current year.

CarMax Company Profile

CarMax NYSE: KMX is a leading retailer of used vehicles in the United States, offering customers a streamlined, no-haggle purchasing experience. The company's inventory spans a broad range of makes and models, each of which undergoes a comprehensive inspection process before being offered for sale. Customers can shop in person at CarMax's retail locations or browse the company's online platform, which provides detailed vehicle histories, virtual tours and contactless purchasing options.

Originally launched in 1993 as a division of Circuit City, CarMax became an independent, publicly traded company in 1997.

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