$46.81 +0.39 (+0.84%) — Oct 6, 2025, 4:10 PM ET 
Ticker: KMX | Exchange: NYSE 🚗 
Tagline: Buy a car. Buy a stock. Just make sure you kick the tires first. 😎

💡 The Trigger: Insiders Hit the Gas

Insiders are actually buying at CarMax — and not just used cars.

👔 Director Mark O’Neil: Bought 10,816 shares @ $46.21 (+78% to 24,690 shares)
👔 Director Mitchell Steenrod: Bought 2,000 shares @ $45.57 — and earlier this year another 1,300 @ $65.49 (ouch 😬 that one’s still underwater).

Nothing says confidence like doubling down after a 50% price drop.

💰 The Funds Are Riding Shotgun

Institutions are basically living in CarMax’s trunk:

• 111.06% of shares held by institutions (yes, somehow > 100% — hedge-fund math!)

• 991 institutional holders

• 147 million shares outstanding

🏦 Top Holders:

• Vanguard Group – 17.56 M shares (-2.9%)

• BlackRock – 10.83 M (-10.3%)

• Diamond Hill – +18.8% (addicted to discounts?)

• AQR Capital – up a whopping 195%!

So yes — while short sellers hold ~10.2% of the float, the smart-money crowd seems to be quietly revving up.

For CarMax (KMX)'s Institutional Ownership breakdown, 🔍 see here.

🏪 What CarMax Actually Does

CarMax runs two engines:

1️⃣ CarMax Sales Operations – your neighborhood used-car lot on steroids. Over 200 stores, reconditioning centers, auctions, and the occasional Ferrari next to a 2009 Civic.
2️⃣ CarMax Auto Finance (CAF) – makes it possible for people to actually afford those cars (11.2% loan rate says hello).

Omnichannel shopping, nationwide logistics, and a brand new slogan — “Wanna Drive?” — aim to make buying used cars as fun as scrolling TikTok (but slightly more expensive).

📉 The Quarter That Needed a Tune-Up

🚦 Retail and Wholesale Sales

• Retail used units down 5.4%; comparable store sales -6.3%

• Wholesale units -2.2%

• Still grossing $2,216 per retail unit and $993 wholesale — not bad in a traffic jam of competition.

🧾 SG&A Trimming

• Expenses down 1.6% to $601 M

• Plan to slash another $150 M over 18 months — the corporate version of losing a few pounds before beach season.

💳 CarMax Auto Finance (CAF)

• Income down 11.2% → $102.6 M

• Loan-loss provisions up (big time): $142.2 M vs $112.6 M prior-year

• Worsening performance in 2022-23 loan vintages (surprise repo party)

Still, they’re pulling off a $900 M securitization deal to offload risk and earn some service fees.

🚗 Buybacks & Expansion

• Repurchased $180 M in shares (this quarter alone!)

• Opened 3 stores and 1 reconditioning center.

• Cash left for buybacks: a cool $1.56 B.

👉 Want the full picture? Dive into CarMax (KMX)'s financials here.

💬 CEO Bill Nash Says:

“While this was a challenging quarter, we remain confident in our long-term strategy.”

Translation: “We know it looks rough, but please focus on the omnichannel experience and ignore the SG&A section.”

⚙️ Valuation: Used Stock, Like New

KMX has gone from Tesla pricing to Toyota reliability. Take a look 👇

The stock is 70% below its 2021 all-time high of $155.98. If CarMax restarts growth, this could be a dream comeback ride.

🌟 Why Some Investors Still “Wanna Drive”

✅ Competitive Moat — Nationwide footprint + reconditioning centers = logistics superpower.
✅ Digital Transformation — 80% of sales supported digitally; customers shop in pajamas.
✅ Partnerships — Owns Edmunds; partners with Recurrent for used EV battery insights.
✅ Omnichannel Model — Buy online, pickup in store, test drive anywhere.
✅ Buyback Program — $1.56 B left = potential shareholder boost.

🧨 Risks & Roadblocks

⚠️ Margin Pressure — Used cars aren’t printing cash like 2021 anymore.
⚠️ Economic Sensitivity — If rates stay high, fewer people finance cars (or anything).
⚠️ Competition — Carvana is back from the dead, and traditional dealers are teching-up.
⚠️ Loan Losses — CAF still feeling pain from 2022–23 borrowers who apparently also bought crypto.
⚠️ Debt Load — D/E ratio over 3.0 = lots of gearing.

💡💡💡 Curious about another deep oil exploration play?
Check our takes on UnitedHealth Group or even Oscar Health.

🤓 Quick Take / TL;DR

• CarMax is cheap on nearly every valuation metric.

• Insiders and funds are buying like it’s a Black Friday deal.

• Challenges remain — sales down, profits under pressure, competition brutal.

• But if CarMax executes its digital and efficiency plans, the stock could double from these levels.

🏁 Think of KMX as a used car with new tires — some scratches, but plenty of mileage left.

🧠 FAQs

Q: Why are institutional holdings over 100%?
A: Because hedge funds like to borrow shares and short them. It’s basically Wall Street pretending there are extra cars on the lot.

Q: Is CarMax profitable?
A: Yes — EPS $3.21 vs $3.02 last year (+6.3%). It runs a tight operation despite higher loan losses.

Q: Why did the stock crash 70% from its high?
A: Pandemic supply chains snapped, used car prices cooled, and investors bailed. Classic overdrive-then-stall.

Q: Is now a buy?
A: If you believe in turnarounds and America’s love for used cars (and buybacks) — maybe. Otherwise, watch the tape and keep your engine idling.

🧾⚠️📢 Fun Disclaimer: 🧾⚠️📢

🧫 Disclosure: We love cars, but we’re not mechanics or brokers. This is entertainment with a side of spreadsheet. If you buy a lemon, at least make sure it has Bluetooth. 🚗😂

Always DYOR, hold the FOMO, and don’t invest what you can’t afford to lose. Also, keep your humor cells alive, and remember: even the best stock charts mutate.

We laugh, we analyze, we meme. We sell jokes and opinions — and yes, we’re billing your sense of humor. 🎪💸 
We’re not financial advisors. We’re FUNancial advisors. 

Invest at your own risk.

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