CarMax Stock Down 47% This Past Year, But One Fund Is Betting $6 Million on a Turnaround

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Jonathan Ponciano, The Motley Fool

Tue, February 3, 2026 astatine 9:20 AM CST 4 min read

On February 2, BML Capital Management, LLC disclosed a caller presumption successful CarMax (NYSE:KMX), acquiring 155,000 shares successful an estimated $5.99 cardinal commercialized based connected quarterly mean pricing.

According to an SEC filing dated February 2, BML Capital Management disclosed a caller presumption successful CarMax (NYSE:KMX), purchasing 155,000 shares during the 4th quarter. The estimated worth of the commercialized was $5.99 million, based connected the quarter-end stock price.

The caller presumption successful CarMax represents 5.18% of BML Capital’s reported 13F assets nether absorption aft the filing.

Top holdings aft the quarter:

NASDAQ: ACRS: $42.89 cardinal (38.0% of AUM)
NASDAQ: AVIR: $26.74 cardinal (23.7% of AUM)
NASDAQ: ORMP: $9.03 cardinal (8.0% of AUM)
NASDAQ: TIL: $7.10 cardinal (6.3% of AUM)
NASDAQ: PMVP: $6.62 cardinal (5.9% of AUM)

As of February 2, CarMax shares were priced astatine $44.78, down 46.84% implicit the past twelvemonth and good underperforming the S&P 500’s astir 15% summation successful the aforesaid period.

Metric

Value

Revenue (TTM)	$25.94 billion
Net income (TTM)	$457.84 million
Market capitalization	$6.58 billion
Price (as of February 2)	$44.78

CarMax offers a wide enactment of utilized vehicles, including domestic, imported, luxury, hybrid, and electrical models, on with extended extortion plans and conveyance repair services.
The institution operates an integrated retail and wholesale model, generating gross done utilized conveyance sales, financing via CarMax Auto Finance, and ancillary services specified arsenic reconditioning and auctions.
It targets retail consumers seeking utilized vehicles crossed the United States, serving a wide lawsuit basal done a web of stores and integer channels.

CarMax is simply a retailer of utilized vehicles successful the United States, leveraging a nationwide footprint and a multi-channel income attack to thrust standard and operational efficiency. The institution offers customers a wide scope of vehicles and flexible financing options, supported by auction and reconditioning capabilities.

BML Capital’s bargain elevates CarMax into 1 of the astir concentrated bets successful a portfolio mostly dominated by early-stage biotech and asymmetric maturation names. A 5% allocation to a scaled, cash-generative retailer is not dabbling; it’s a structural choice.

Still, CarMax enters this infinitesimal nether pressure. Third-quarter results showed retail utilized portion income down 8% twelvemonth implicit year, comparable income disconnected 9%, and net per stock falling to $0.43 from $0.81 a twelvemonth earlier. Gross nett per retail portion declined modestly to $2,235, portion wholesale margins were deed harder by conveyance terms depreciation.

Despite softer volumes, CarMax generated $590 cardinal successful gross nett and $174.7 cardinal successful income from CarMax Auto Finance, which grew much than 9% twelvemonth implicit twelvemonth and continues to anchor profitability. Management is targeting astatine slightest $150 cardinal successful SG&A run-rate savings by fiscal 2027, portion continuing assertive buybacks. The institution repurchased $201.6 cardinal of banal successful the 4th alone. So portion it mightiness beryllium a pugnacious clip for CarMax, BML intelligibly sees an opportunity, and determination are signs the steadfast is onto something.