Shares of CarMax Inc (NYSE:KMX) were last seen in a 22.2% hole, trading at $44.37 after missing fiscal second-quarter expectations, reporting earnings of $0.64 on revenue of $6.59 billion. The company saw declines across the board, most notably in its wholesale and used vehicle segments. Wedbush downgraded KMX from "outperform" to "neutral" in response, and slashed its price target to $54 from $84.
The equity has had a rough go of late, on track to extend its losing streak to five sessions and mark one of its steepest losses since 2022. KMX is now trading at five-year lows and below the $50 level for the first time in that span. The shares have already shed 45.8% in 2025.
At the International Securities (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), KMX's 50-day call/put ratio of 2.63 sits in the 80th percentile of the last year. This means an unwinding of optimism in the options pits could create additional headwinds for the equity.
CarMax stock is already seeing increased bearish attention. So far today, 21,000 puts have been placed, which is 24 times the usual intraday amount. The most popular contract is by far the October 40 put, followed by the 45- and 60 calls in the same series, with positions opening at the first two contracts.
