CarMax Faces Securities Class Action; Investors Can Apply to Lead by January 2, 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: Businesswire
- Legal Action Reminder: Kahn Swick & Foti LLC informs investors that those who purchased CarMax securities between June 20, 2025, and November 5, 2025, must apply to lead the securities class action by January 2, 2026, to seek recovery for economic losses due to undisclosed material information.
- Performance Decline Disclosure: CarMax's financial results released on September 25, 2025, revealed a 5.4% drop in retail unit sales and a 6.3% decline in comparable store sales, with net earnings per diluted share falling to $0.64 from $0.85 a year ago, leading to a 20.07% drop in share price to $45.60, indicating severe market concerns about the company's performance.
- Lawsuit Background: The lawsuits allege that CarMax and certain executives failed to disclose critical information during the class period, violating federal securities laws, which could expose the company to significant legal and financial risks.
- Investor Rights Protection: KSF offers no-obligation consultations to help investors understand their legal rights and the potential impact of the case on their economic losses, demonstrating a commitment to protecting investor interests.
Analyst Views on KMX
Wall Street analysts forecast KMX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KMX is 40.92 USD with a low forecast of 27.00 USD and a high forecast of 60.00 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.
17 Analyst Rating
2 Buy
12 Hold
3 Sell
Hold
Current: 39.170
Low
27.00
Averages
40.92
High
60.00
Current: 39.170
Low
27.00
Averages
40.92
High
60.00
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.
