CarMax Securities Class Action Reminder: Lead Plaintiff Deadline January 2, 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 17 2025
0mins
Should l Buy KMX?
Source: PRnewswire
- Class Action Notification: Rosen Law Firm reminds investors who purchased CarMax securities between June 20 and November 5, 2025, that the lead plaintiff deadline is January 2, 2026, allowing potential compensation without out-of-pocket costs if successful.
- Case Background: The lawsuit alleges that CarMax made materially false statements during the class period, overstating growth prospects, which led to investor losses when the truth emerged, highlighting significant reputational risks for the company in the market.
- Law Firm Advantage: Rosen Law Firm specializes in securities class actions and recovered over $438 million for investors in 2019 alone, demonstrating its success and resource advantages in handling such cases effectively.
- Investor Selection Advice: Investors are advised to choose counsel with a proven track record to ensure effective legal support in class actions, avoiding firms that merely act as intermediaries without substantial litigation experience.
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Analyst Views on KMX
Wall Street analysts forecast KMX stock price to fall
13 Analyst Rating
0 Buy
10 Hold
3 Sell
Hold
Current: 41.580
Low
24.00
Averages
33.60
High
37.00
Current: 41.580
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.
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- Trust and Performance: Analysis by Great Place to Work reveals that trust among employees, based on anonymous survey responses from over 1.3 million U.S. workers, is a leading indicator of business performance, with high-trust companies motivating employees to exert extra effort.
- Multiple Honors: In addition to being a top employer, CarMax has received accolades such as Fortune's Best Workplaces in Retail, Best Workplaces for Parents, PEOPLE's Companies that Care, and recognition as a Military Friendly Employer, enhancing its employer brand image.
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- Record High Debt Levels: As of Q4 2025, the average amount owed on underwater trade-ins reached $7,214, a record high, with 27% of these trade-ins carrying over $10,000 in negative equity, reflecting a deterioration in consumer financial health.
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- Executive Participation: The call will feature Interim Executive Chair Tom Folliard, President and CEO Keith Barr, CFO Enrique Mayor-Mora, and EVP of CarMax Auto Finance Jon Daniels, highlighting the company's commitment to engaging with its investors.
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- Technology-Driven Transformation: Barr plans to leverage technology to reduce digital friction and provide a simple, seamless, personalized omnichannel experience, thereby enhancing customer satisfaction and improving associate effectiveness to drive the company towards a more efficient operational model.
- Governance and Strategic Adjustments: In response to activist investor Starboard Value, Barr committed to implementing disciplined measures to refocus the organization, improve governance, and enhance CarMax's long-term potential to address recent performance challenges.
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- Net Income Plummets: The company's net income for Q2 was approximately $95.4 million, down 28.2% from $132.8 million a year ago, reflecting a sharp decline in profitability that may erode investor confidence.
- Executive Turnover Impact: The unexpected departure of CarMax's CEO on November 6, 2025, along with a weak preliminary Q3 outlook, could exacerbate market concerns regarding the company's future performance.
- Legal Action Risks: CarMax and its executives are facing a securities class action lawsuit for failing to disclose material information during the class period, and KSF's investigation will assess whether executives breached fiduciary duties to shareholders, potentially leading to greater legal and financial risks for the company.
See More
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Report Overview: Recent reports from investment and research firms provide insights into analysts' perspectives on various companies.
Disclaimer: The views expressed in these reports do not reflect the opinions or recommendations of Barron’s.
Investment Services: Some report issuers may have existing or potential investment-banking relationships with the companies analyzed.
Purpose of Reports: The reports serve as a sampling of market analysis rather than definitive investment advice.
See More
CarMax Recognized as One of the 100 Best Companies to Work For for 22nd Consecutive Year
- Best Employer Recognition: CarMax has been named one of the 100 Best Companies to Work For by Fortune for the 22nd consecutive year, ranking #56 in 2026, highlighting the company's ongoing excellence in employee satisfaction and corporate culture.
- Trust and Performance: Analysis by Great Place to Work reveals that trust among employees, based on anonymous survey responses from over 1.3 million U.S. workers, is a leading indicator of business performance, with high-trust companies motivating employees to exert extra effort.
- Multiple Honors: In addition to being a top employer, CarMax has received accolades such as Fortune's Best Workplaces in Retail, Best Workplaces for Parents, PEOPLE's Companies that Care, and recognition as a Military Friendly Employer, enhancing its employer brand image.
- Recruitment and Benefits: CarMax is currently hiring across various business areas, offering competitive pay and benefits, including immediate 401(k) eligibility, gym discounts, and comprehensive medical plans, which attract talent and improve employee satisfaction.
See More
Rising Negative Equity Among New Car Buyers
- Rising Negative Equity: According to J.D. Power, 30.5% of new car buyers are facing negative equity on trade-ins, up 4.2 percentage points from last year, indicating increasing market pressures that affect consumer purchasing decisions.
- Record High Debt Levels: As of Q4 2025, the average amount owed on underwater trade-ins reached $7,214, a record high, with 27% of these trade-ins carrying over $10,000 in negative equity, reflecting a deterioration in consumer financial health.
- Increased Payment Burden: The average monthly payment for buyers rolling negative equity into new loans hit $916, which is $144 higher than the average payment for all new car purchases, indicating greater financial strain on consumers when buying vehicles.
- Extended Loan Terms Trend: Among new car purchases involving negative equity, 40.7% are financed with 84-month loans, suggesting that consumers are extending loan terms to cope with high vehicle prices, thereby increasing future negative equity risks.
See More
CarMax to Report Q4 Financial Results on April 14
- Earnings Release Schedule: CarMax will report its financial results for the fourth quarter ended February 28, 2026, before the market opens on April 14, 2026, and will host a conference call at 9:00 a.m. ET, ensuring transparent communication of its performance to investors.
- Executive Participation: The call will feature Interim Executive Chair Tom Folliard, President and CEO Keith Barr, CFO Enrique Mayor-Mora, and EVP of CarMax Auto Finance Jon Daniels, highlighting the company's commitment to engaging with its investors.
- Financial Performance Overview: In the fiscal year ending February 2025, CarMax sold approximately 790,000 used vehicles and 540,000 wholesale vehicles, indicating strong market performance, while CarMax Auto Finance originated over $8 billion in auto loans, enhancing its nearly $18 billion loan portfolio.
- Company Background Information: As the largest retailer of used cars in the U.S., CarMax operates over 250 locations with more than 28,000 associates and has been recognized for 21 consecutive years as one of the Fortune 100 Best Companies to Work For, reflecting its leadership in the industry and commitment to employee satisfaction.
See More
CarMax's New CEO Emphasizes Customer-Centric Leadership
- Leadership Style Introduction: CarMax's new CEO Keith Barr emphasized a customer- and associate-centric leadership approach in his letter to shareholders, drawing on his successful experience in major hotel brands to enhance the company's competitiveness in the used car market.
- Brand and Market Advantages: Barr praised CarMax's trusted brand and its national footprint reaching 85% of the U.S. population, arguing that these strengths create a powerful platform for growth in the large, fragmented used car market.
- Technology-Driven Transformation: Barr plans to leverage technology to reduce digital friction and provide a simple, seamless, personalized omnichannel experience, thereby enhancing customer satisfaction and improving associate effectiveness to drive the company towards a more efficient operational model.
- Governance and Strategic Adjustments: In response to activist investor Starboard Value, Barr committed to implementing disciplined measures to refocus the organization, improve governance, and enhance CarMax's long-term potential to address recent performance challenges.
See More
KSF Launches Investigation into CarMax Amid Financial Declines
- Financial Performance Decline: CarMax reported a 5.4% decrease in retail unit sales and a 6.3% drop in comparable store sales for Q2 2025, indicating significant market pressure that could adversely affect future profitability.
- Net Income Plummets: The company's net income for Q2 was approximately $95.4 million, down 28.2% from $132.8 million a year ago, reflecting a sharp decline in profitability that may erode investor confidence.
- Executive Turnover Impact: The unexpected departure of CarMax's CEO on November 6, 2025, along with a weak preliminary Q3 outlook, could exacerbate market concerns regarding the company's future performance.
- Legal Action Risks: CarMax and its executives are facing a securities class action lawsuit for failing to disclose material information during the class period, and KSF's investigation will assess whether executives breached fiduciary duties to shareholders, potentially leading to greater legal and financial risks for the company.
See More
Analyst Claims Oracle Demonstrates Greater Resilience Despite AI Challenges; Also Featuring CarMax, Rivian, and Other Stocks.
Report Overview: Recent reports from investment and research firms provide insights into analysts' perspectives on various companies.
Disclaimer: The views expressed in these reports do not reflect the opinions or recommendations of Barron’s.
Investment Services: Some report issuers may have existing or potential investment-banking relationships with the companies analyzed.
Purpose of Reports: The reports serve as a sampling of market analysis rather than definitive investment advice.
See More
