BML Capital Management Acquires CarMax Shares
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Should l Buy KMX?
Source: Fool
- Share Acquisition: BML Capital Management disclosed a new position in CarMax by acquiring 155,000 shares valued at approximately $5.99 million during Q4, indicating confidence in the company despite a 46.84% decline in its stock price over the past year.
- Portfolio Concentration: This acquisition elevates CarMax to a 5.18% allocation in BML's portfolio, highlighting a strategic choice to invest in a cash-generative retailer amidst a focus on early-stage biotech investments, suggesting a belief in market opportunities.
- Financial Performance Pressure: CarMax's Q3 results revealed an 8% year-over-year decline in retail used unit sales and a 9% drop in comparable sales, with earnings per share falling from $0.81 to $0.43, indicating significant market challenges.
- Profitability and Savings Goals: Despite softer volumes, CarMax generated $590 million in gross profit and aims for at least $150 million in SG&A savings by fiscal 2027 while continuing aggressive stock buybacks, demonstrating a commitment to maintaining profitability in challenging times.
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Analyst Views on KMX
Wall Street analysts forecast KMX stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for KMX is 33.60 USD with a low forecast of 24.00 USD and a high forecast of 37.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
0 Buy
10 Hold
3 Sell
Hold
Current: 45.470
Low
24.00
Averages
33.60
High
37.00
Current: 45.470
Low
24.00
Averages
33.60
High
37.00
About KMX
CarMax, Inc. is a retailer of used autos. The Company operates through two segments: CarMax Sales Operations and CarMax Auto Finance (CAF). The CarMax Sales Operations segment consists of all aspects of its auto merchandising and service operations. The CarMax Sales Operations segment sells used vehicles, purchases used vehicles from customers and other sources, sells related products and services, and arranges financing options for customers. The CAF segment consists solely of its own finance operation that provides financing for customers buying retail vehicles from the Company. The CAF segment also services all auto loans, it originates and is responsible for providing billing statements, collecting payments, maintaining contact with delinquent customers, and arranging for the repossession of vehicles securing defaulted loans. It provides customers with a range of other related products and services, including extended protection plan (EPP) products and vehicle repair services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
CarMax Recognized as One of America's Most Iconic Companies
- Industry Benchmark Recognition: CarMax has been named one of America's Most Iconic Companies by TIME Magazine, highlighting its leadership in the automotive retail sector and further solidifying its position as the nation's largest used car retailer.
- Customer Experience Innovation: By introducing a 'no-haggle' pricing model, CarMax has transformed the car buying experience, enhancing customer satisfaction and brand loyalty, which has driven the company's sustained growth over the past three decades.
- Market Influence: The selection was based on an independent survey of over 10,000 U.S. consumers, emphasizing CarMax's outstanding performance in brand recognition, cultural influence, and emotional connection, thereby enhancing its market image.
- Commitment to Continuous Development: With 255 stores and over 28,000 associates, CarMax has been recognized as one of the Fortune 100 Best Companies to Work For® for 21 consecutive years, demonstrating its ongoing commitment to employee satisfaction and corporate culture.
See More
BML Capital Management Acquires CarMax Shares
- Share Acquisition: BML Capital Management disclosed a new position in CarMax by acquiring 155,000 shares valued at approximately $5.99 million during Q4, indicating confidence in the company despite a 46.84% decline in its stock price over the past year.
- Portfolio Concentration: This acquisition elevates CarMax to a 5.18% allocation in BML's portfolio, highlighting a strategic choice to invest in a cash-generative retailer amidst a focus on early-stage biotech investments, suggesting a belief in market opportunities.
- Financial Performance Pressure: CarMax's Q3 results revealed an 8% year-over-year decline in retail used unit sales and a 9% drop in comparable sales, with earnings per share falling from $0.81 to $0.43, indicating significant market challenges.
- Profitability and Savings Goals: Despite softer volumes, CarMax generated $590 million in gross profit and aims for at least $150 million in SG&A savings by fiscal 2027 while continuing aggressive stock buybacks, demonstrating a commitment to maintaining profitability in challenging times.
See More
Wall Street Analysts Adjust ROKU Ratings
- Analyst Rating Changes: Top Wall Street analysts have adjusted their outlook on ROKU stock, indicating a divergence in market sentiment regarding the company's future prospects, which could influence investor decisions and market mood.
- Market Reaction Monitoring: While specific rating changes were not detailed, analysts' opinions typically have a direct impact on stock prices, prompting investors to closely monitor subsequent market developments.
- Impact of Rating Changes: Upgrades or downgrades from analysts can lead to short-term volatility in ROKU's stock, making it essential for investors to consider these rating changes in their investment strategies.
- Investor Recommendations: When considering the purchase of ROKU stock, investors are advised to reference the latest analyst ratings and market trends to make more informed investment decisions.
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U.S. Auto Market Faces Wealth Disparity Challenges
- Income Disparity: According to Cox Automotive, the share of new car buyers earning less than $100,000 dropped from 50% in 2020 to 37% last year, while those earning over $200,000 increased from 18% to 29%, indicating a shift towards affluent buyers and resulting in millions of lost sales.
- Sales Trends: New car sales in the U.S. reached 16.3 million in 2025, falling short of the pre-pandemic record of over 17 million, yet still above historical averages; however, rising average prices and insurance costs are forcing many consumers to opt for used vehicles, impacting overall market vitality.
- Affordability Crisis: A study by Plante Moran found that about one-third of the U.S. population cannot afford new vehicles, with only around 110 “affordable” models available for households earning $65,000 or less, compared to over 250 models for those earning up to $105,000, highlighting severe market imbalances.
- High Monthly Payments: CarMax's Edmunds reported that 20% of new car buyers in Q4 2022 committed to monthly payments exceeding $1,000, a record high, prompting Ford's CEO to warn that the automotive industry must be cautious about affordability issues to avoid a decline in consumer demand and future sales.
See More
U.S. Auto Market Faces Affordability Crisis
- Changing Consumer Income: According to Cox Automotive, the share of new car buyers with incomes below $100,000 dropped from 50% in 2020 to 37%, while those earning over $200,000 increased from 18% to 29%, indicating a market dominated by affluent buyers, which excludes lower-income consumers from new vehicle purchases.
- New Car Sales Trends: U.S. new car sales are projected to reach 16.3 million in 2025, a decline from the record 17 million in 2020, yet still above historical averages; however, reliance on high-priced models may shrink the market and impact overall sales negatively.
- Scarcity of Affordable Models: A study by Plante Moran found that about one-third of the U.S. population cannot afford new vehicles, with only around 110
See More
Surge in Options Trading Volume for PayPal and Carmax
- PayPal Options Volume: PayPal's options trading volume reached 70,445 contracts, equivalent to approximately 7 million shares, representing about 49.4% of its average daily trading volume of 14.3 million shares over the past month, indicating heightened market interest in its future performance.
- High Put Option Activity: Within PayPal, the $55 strike put option expiring on January 30, 2026, saw 3,180 contracts traded, representing around 318,000 underlying shares, suggesting investor expectations of potential downside risks in its stock price.
- Carmax Options Dynamics: Carmax's options trading volume stood at 17,504 contracts, equivalent to approximately 1.8 million shares, accounting for 48.7% of its average daily trading volume of 3.6 million shares over the past month, reflecting active trading interest among investors.
- Bullish Call Option Surge: For Carmax, the $50 strike call option expiring on March 20, 2026, recorded 16,584 contracts traded, representing about 1.7 million shares, indicating a bullish sentiment in the market regarding its future stock price appreciation.
See More
CarMax Recognized as One of America's Most Iconic Companies
- Industry Benchmark Recognition: CarMax has been named one of America's Most Iconic Companies by TIME Magazine, highlighting its leadership in the automotive retail sector and further solidifying its position as the nation's largest used car retailer.
- Customer Experience Innovation: By introducing a 'no-haggle' pricing model, CarMax has transformed the car buying experience, enhancing customer satisfaction and brand loyalty, which has driven the company's sustained growth over the past three decades.
- Market Influence: The selection was based on an independent survey of over 10,000 U.S. consumers, emphasizing CarMax's outstanding performance in brand recognition, cultural influence, and emotional connection, thereby enhancing its market image.
- Commitment to Continuous Development: With 255 stores and over 28,000 associates, CarMax has been recognized as one of the Fortune 100 Best Companies to Work For® for 21 consecutive years, demonstrating its ongoing commitment to employee satisfaction and corporate culture.
See More
BML Capital Management Acquires CarMax Shares
- Share Acquisition: BML Capital Management disclosed a new position in CarMax by acquiring 155,000 shares valued at approximately $5.99 million during Q4, indicating confidence in the company despite a 46.84% decline in its stock price over the past year.
- Portfolio Concentration: This acquisition elevates CarMax to a 5.18% allocation in BML's portfolio, highlighting a strategic choice to invest in a cash-generative retailer amidst a focus on early-stage biotech investments, suggesting a belief in market opportunities.
- Financial Performance Pressure: CarMax's Q3 results revealed an 8% year-over-year decline in retail used unit sales and a 9% drop in comparable sales, with earnings per share falling from $0.81 to $0.43, indicating significant market challenges.
- Profitability and Savings Goals: Despite softer volumes, CarMax generated $590 million in gross profit and aims for at least $150 million in SG&A savings by fiscal 2027 while continuing aggressive stock buybacks, demonstrating a commitment to maintaining profitability in challenging times.
See More
Wall Street Analysts Adjust ROKU Ratings
- Analyst Rating Changes: Top Wall Street analysts have adjusted their outlook on ROKU stock, indicating a divergence in market sentiment regarding the company's future prospects, which could influence investor decisions and market mood.
- Market Reaction Monitoring: While specific rating changes were not detailed, analysts' opinions typically have a direct impact on stock prices, prompting investors to closely monitor subsequent market developments.
- Impact of Rating Changes: Upgrades or downgrades from analysts can lead to short-term volatility in ROKU's stock, making it essential for investors to consider these rating changes in their investment strategies.
- Investor Recommendations: When considering the purchase of ROKU stock, investors are advised to reference the latest analyst ratings and market trends to make more informed investment decisions.
See More
U.S. Auto Market Faces Wealth Disparity Challenges
- Income Disparity: According to Cox Automotive, the share of new car buyers earning less than $100,000 dropped from 50% in 2020 to 37% last year, while those earning over $200,000 increased from 18% to 29%, indicating a shift towards affluent buyers and resulting in millions of lost sales.
- Sales Trends: New car sales in the U.S. reached 16.3 million in 2025, falling short of the pre-pandemic record of over 17 million, yet still above historical averages; however, rising average prices and insurance costs are forcing many consumers to opt for used vehicles, impacting overall market vitality.
- Affordability Crisis: A study by Plante Moran found that about one-third of the U.S. population cannot afford new vehicles, with only around 110 “affordable” models available for households earning $65,000 or less, compared to over 250 models for those earning up to $105,000, highlighting severe market imbalances.
- High Monthly Payments: CarMax's Edmunds reported that 20% of new car buyers in Q4 2022 committed to monthly payments exceeding $1,000, a record high, prompting Ford's CEO to warn that the automotive industry must be cautious about affordability issues to avoid a decline in consumer demand and future sales.
See More
U.S. Auto Market Faces Affordability Crisis
- Changing Consumer Income: According to Cox Automotive, the share of new car buyers with incomes below $100,000 dropped from 50% in 2020 to 37%, while those earning over $200,000 increased from 18% to 29%, indicating a market dominated by affluent buyers, which excludes lower-income consumers from new vehicle purchases.
- New Car Sales Trends: U.S. new car sales are projected to reach 16.3 million in 2025, a decline from the record 17 million in 2020, yet still above historical averages; however, reliance on high-priced models may shrink the market and impact overall sales negatively.
- Scarcity of Affordable Models: A study by Plante Moran found that about one-third of the U.S. population cannot afford new vehicles, with only around 110
See More
Surge in Options Trading Volume for PayPal and Carmax
- PayPal Options Volume: PayPal's options trading volume reached 70,445 contracts, equivalent to approximately 7 million shares, representing about 49.4% of its average daily trading volume of 14.3 million shares over the past month, indicating heightened market interest in its future performance.
- High Put Option Activity: Within PayPal, the $55 strike put option expiring on January 30, 2026, saw 3,180 contracts traded, representing around 318,000 underlying shares, suggesting investor expectations of potential downside risks in its stock price.
- Carmax Options Dynamics: Carmax's options trading volume stood at 17,504 contracts, equivalent to approximately 1.8 million shares, accounting for 48.7% of its average daily trading volume of 3.6 million shares over the past month, reflecting active trading interest among investors.
- Bullish Call Option Surge: For Carmax, the $50 strike call option expiring on March 20, 2026, recorded 16,584 contracts traded, representing about 1.7 million shares, indicating a bullish sentiment in the market regarding its future stock price appreciation.
See More
