CarMax, Inc. (NYSE:KMX) Faces Rising Loan Delinquencies Amidst Outperform Rating

• Wedbush reaffirms an "Outperform" rating for CarMax, Inc. (NYSE:KMX) with a $90 price target despite rising loan delinquencies.
• CarMax's Auto Finance division reports an increase in loan delinquencies and net losses for May, indicating potential concerns over credit quality.
• The company's market capitalization is approximately $9.8 billion, with a trading volume of 4,881,038 shares on the NYSE.

CarMax, Inc. (NYSE:KMX) is a leading retailer of used vehicles in the United States, operating through two segments: CarMax Sales Operations and CarMax Auto Finance. CarMax Sales Operations is responsible for selling used vehicles, while CarMax Auto Finance provides financing options to customers. The company faces competition from other used car retailers like AutoNation and online platforms such as Carvana.

On June 18, 2025, Wedbush reaffirmed its "Outperform" rating for CarMax, with the stock priced at $64.35. Despite the "hold" action, Wedbush continues to support CarMax, as highlighted by Benzinga, even as loan delinquencies rise. The current stock price of KMX is $64.33, reflecting a slight decrease of 0.1, or approximately -0.16% in percentage terms.

CarMax's Auto Finance division has reported an increase in loan delinquencies and net losses for May, raising concerns about credit quality. This follows two months of relative stability. The data from May showed a decline in performance compared to April and a year-over-year deterioration. Delinquency and loss rates increased more sharply than typical seasonal trends.

Wedbush analyst Scott Devitt has reiterated an "Outperform" rating for CarMax with a $90 price target, despite the rising delinquencies. Devitt cautions that ongoing weakness in credit performance could impact future loan loss provisions, especially as CarMax increasingly targets lower-tier borrowers to maintain interest margins. The company's market capitalization stands at approximately $9.8 billion, with a trading volume of 4,881,038 shares on the NYSE:KMX.