CarMax Stock Crashes After 4th-Quarter Miss

CarMax stock is moving farther away from its recent highs

The shares of CarMax Inc (NYSE:KMX) are plummeting today, after the used car retailer’s disappointing fourth-quarter results. The company also delayed its long-term financial target, expecting to sell over 2 million retail and wholesale units annually between 2026 and 2030, compared to its previous goal of 2026. 

At last glance, KMX was down 12% at $69.75, and trading at its lowest levels since February. The stock is a far cry from its March 28, 52-week high of $88.22, down 20.4% since the start of April. Year to date, the equity is off 9.6%. 

In response, puts are outpacing calls in the options pits today. So far, 17,000 puts have been exchanged in comparison to 7,045 calls, with overall options volume already at 4.8 times the average daily amount. The weekly 4/12 70-strike put is the most popular, where new positions are being opened. 

KMX is on the short sell restricted (SSR) list today amid the volatility. It’s also worth noting that short interest represents 12.2% of the stock’s available float. It would take over 11 days for shorts to cover their bets, at CarMax stock’s average pace of trading. 

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