- Analyst from Mizuho Securities sets a price target of $36 for NYSE:KMX, indicating potential downside.

- CarMax reports an 8% decrease in retail used vehicle unit sales and a 12.9% reduction in total gross profit in Q3 2025.

- Despite financial challenges, CarMax is actively repurchasing shares, signaling management's confidence in the company's future.

CarMax, Inc. (NYSE:KMX) is a leading retailer of used vehicles in the United States. The company operates through two segments: CarMax Sales Operations and CarMax Auto Finance. CarMax faces competition from other used car retailers and online platforms. Despite its strong market presence, the company is currently navigating through a challenging period.

On December 19, 2025, David Bellinger from Mizuho Securities set a price target of $36 for KMX. At that time, the stock was trading at $39.34, which is approximately 8.49% higher than the target. This suggests that analysts see potential downside in the stock's value, possibly due to the company's recent financial performance. CarMax is experiencing declining revenues, volumes, and margins. In the third quarter of 2025, the company reported an 8% decrease in retail used vehicle unit sales. Additionally, there was a 12.9% reduction in total gross profit. These declines are attributed to intense competition and the stabilization of used car prices, which have impacted the company's financial health.

Despite these challenges, CarMax is actively repurchasing shares, with $1.36 billion authorized for this purpose. This move indicates management's confidence in the company's future prospects. Share repurchases can signal to investors that the company believes its stock is undervalued and expects future growth. Currently, KMX is trading at $39.34, reflecting a 4.21% decrease with a drop of $1.73. The stock has fluctuated between $38.34 and $41.97 today. Over the past year, KMX has seen a high of $89.47 and a low of $30.26. The company's market capitalization is approximately $5.91 billion, with a trading volume of 12.26 million shares on the NYSE.