CarMax (KMX) News Today

CarMax, Inc. (NYSE:KMX) shares have come under pressure after the company reported weaker-than-expected Q2 results, took a surprise hit to its financing arm, and faced multiple securities-fraud probes. Offsetting some of that weakness, a few analysts have raised near-term earnings estimates. Below is a breakdown of the latest news driving KMX stock today:

• Positive Sentiment: Seaport Res Ptn lifted its Q3 2026 EPS estimate to $0.83 from $0.82, signaling improved near-term profitability. Seaport Res Ptn Positive Outlook
• Positive Sentiment: Analysts at Seaport Res Ptn raised their Q4 2026 EPS forecast to $0.66 from $0.59. Seaport Res Ptn Raises Q4 Estimates
• Positive Sentiment: Seaport Res Ptn now projects FY2026 EPS of $3.50 (up from consensus $3.23), reflecting improved full-year expectations. Seaport Res Ptn FY2026 Revision
• Neutral Sentiment: Morgan Stanley lowered its price target from $80 to $56 but maintained an “overweight” rating, indicating limited further downside. Morgan Stanley Price Target Cut
• Neutral Sentiment: An Argus research note was released on CarMax without material rating or estimate changes. Analyst Report: CarMax Inc
• Negative Sentiment: CarMax’s CarMax Auto Finance unit took an unexpected $142 million loan-loss provision, sending shares down nearly 20% after Q2 results. Loss Provision Sparks Sell-off
• Negative Sentiment: Q2 EPS of $0.64 and revenue of $6.59 billion both missed consensus, driven by lower used-vehicle sales and financing income. Earnings Miss & Revenue Decline
• Negative Sentiment: Three law firms (DJS Law Group, Schall, BFA) have launched securities-fraud investigations into alleged misleading disclosures.
  • DJS Law Group probe
  • Schall Law Firm probe
  • BFA Law probe
• Negative Sentiment: Shares have slid over 23% in the past week and are down more than 40% YTD amid deteriorating fundamentals. Stock Drop Analysis
• Negative Sentiment: Seaport Res Ptn cut its FY2026 EPS forecast from $3.87 to $3.50 and downgraded the rating to “Hold,” highlighting reduced long-term growth visibility. Downgrade to Hold
• Negative Sentiment: Seaport Res Ptn issued a weak forecast for FY2027 earnings, adding to investor caution on future profitability. Weak FY2027 Forecast