KMX News & Events

Stock futures are modestly lower in choppy pre-market trading as traders weigh shifting oil prices and a key inflation report. Markets are trading cautiously with volatile energy prices and ongoing geopolitical tensions in the Middle East.The dominant macro driver remains the energy market. Oil prices, which spiked above $100 and briefly approached $120 earlier in the week amid fears of disruptions to shipping through the Strait of Hormuz, have retreated significantly and are now trading below $90 after talk of a coordinated release of emergency reserves. The International Energy Agency is considering recommending a record release of roughly 400M barrels from global strategic stockpiles in an effort to stabilize energy markets following the conflict-driven supply shock, reports indicate.Despite the pullback in crude, markets remain sensitive to geopolitical developments. Reports of attacks on commercial vessels near the Strait of Hormuz have reinforced the fragility of global energy supply routes and kept risk sentiment unstable.Investors are also weighing inflation data that showed consumer prices rising in February. The consumer price index was up 0.3% on a month-over-month basis and up 2.4% compared to last year, both of which matched consensus.In pre-market trading, S&P 500 futures fell 0.23%, Nasdaq futures fell 0.20% and Dow futures fell 0.37%.Check out this morning's top movers from around Wall Street, compiled by The Fly.HIGHER -Nebiusup 10% after announcing $2B investment from Nvidiain strategic partnership to develop and deploy the next generation of hyperscale cloud for the AI marketUniFirstup 7% after entering into a definitive agreement under which Cintaswill acquire the company for $310.00 per share in cash and stockCarMaxup 6% after Starboard Value established a $350M stake in the companyUpstartup 2% after reporting its plan to submit an application to the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation to establish an insured national bankUP AFTER EARNINGS -Target Hospitalityup 11%Oracleup 9%Sprinklrup 8%DOWN AFTER EARNINGS -AeroVironmentdown 11%Groupondown 11%Campbell'sdown 5%Cadredown 5%

Starboard Value, a significant stockholder of CarMax, announced that it has delivered a letter to Keith Barr, the company's incoming CEO, with a copy to the company's board of directors. Starboard has nominated two individuals - William C. Cobb and Jeffrey C. Smith - for election to the board at the company's 2026 annual meeting of shareholders. The letter said, in part, "Congratulations on your appointment as President and Chief Executive Officer of CarMax. We believe you are stepping into this role at an opportunistic time for value creation and are excited for your impending impact. Starboard Value LP is one of the largest shareholders of CarMax, Inc, with approximately a $350 million investment. We believe CarMax is well positioned with a differentiated omnichannel model that should offer a better value proposition than peers. However, as you know, the Company's recent performance has fallen well short of its underlying potential. We believe these problems are fixable. As such, we are excited about your appointment as CEO and believe you will be a positive catalyst for change. We wanted to share our perspective on the business and several key opportunities as you prepare to assume your new role. This letter summarizes the areas where we believe focused execution can drive improvement. We recognize that you have not formally started and are not currently taking meetings. When the timing is appropriate, we would welcome the opportunity to engage directly and collaboratively to share more information and observations. At its core, CarMax's model is straightforward: the Company buys cars, reconditions them, sells them, and supports those activities by providing financing, warranties, and related services. When buying, fixing, and selling are executed well, the model creates a powerful flywheel in which higher volumes drive lower unit costs, enabling more competitive pricing and further share gains. Importantly, realizing the full potential of this flywheel requires consistent execution across all aspects of the business: buying, reconditioning, selling, and cost management."

Starboard Value LP has accumulated a stake of about $350M in CarMax and sees an opportunity to speed up the company's turnaround under the leadership of its incoming CEO Keith Barr, Bloomberg reports, citing people familiar with the matter. The report further notes that Starboard has also nominated its own CEO Jeff Smith to lead the turnaround.