Investment Manager Ditches CarMax Stock Amid Market Concerns
Key Points
Sold entire 148,230-share CarMax stake; position value change estimated at $9.96 million
Post-trade CarMax stake: zero shares, $0 value
The position previously accounted for 1.8% of fund AUM as of the prior quarter
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On November 12, 2025, Hutchinson Capital Management disclosed in a U.S. Securities and Exchange Commission filing that it fully exited its CarMax (NYSE:KMX)position, reducing exposure by about $9.96 million.
What Happened
According to a filing with the U.S. Securities and Exchange Commission dated November 12, 2025, Hutchinson Capital Management sold all 148,230 shares of CarMax during the quarter. The fund’s CarMax holding, previously 1.8% of assets under management as of June 2025, is now fully liquidated, with no shares or value remaining on the latest 13F report.
What Else to Know
Hutchinson Capital Management sold out of CarMax; the position now represents no reportable CarMax holding in the fund’s 13F assets under management.
Top holdings after the filing:
- NYSE: BRK-B: $36,112,317 (6.25% of AUM)
- NASDAQ: GOOGL: $34,940,680 (6.05% of AUM)
- NASDAQ: MSFT: $34,572,563 (5.99% of AUM)
- NASDAQ: AAPL: $30,228,031 (5.23% of AUM)
- NYSE: BAC: $28,475,149 (4.93% of AUM)
As of November 11, 2025, CarMax shares were priced at $34.14, down 55.54% over the past year. Shares have underperformed the S&P 500 by 69.00 percentage points.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $27.79 billion |
| Net Income (TTM) | $521.07 million |
| Price (as of market close 2025-11-11) | $34.14 |
| One-Year Price Change | -55.54% |
Company Snapshot
- Offers a broad selection of used vehicles, including domestic, imported, luxury, hybrid, and electric models, as well as extended protection plans and vehicle repair services.
- Generates revenue through retail vehicle sales, wholesale auctions, and financing solutions provided via CarMax Auto Finance and third-party partnerships.
- Targets retail consumers across the United States seeking used vehicles, with a network of approximately 230 stores and a focus on both prime and subprime credit customers.
CarMax, Inc. operates a nationwide network of stores and offers a comprehensive range of automotive products and services. CarMax, Inc. provides in-house financing and a broad array of automotive products and services.
Foolish Take
According to a recent filing with the SEC, Hutchinson Capital Management, a California-based independent investment management firm, sold its entire stake in CarMax stock during the third quarter (the three months ending on September 30, 2025). Here's why it matters to average investors.
For starters, CarMax stock has been plummeting for months. Shares of CarMax are down 53% year-to-date, driven lower by several factors:
- Macroeconomic weakness, along with lagging demand for used cars has led to sluggish fundamentals for Carmax. Over the last three years, CarMax's trailing 12-month revenue fallen 6% year-over-year to $27.8 billion.
- In addition, the company is facing increased competition. Specifically, Carvana, has taken market share from CarMax, due to its online-first business model.
- Higher interest rates have also damped the overall market for used vehicles, as average monthly payments are higher versus several years ago -- meaning consumers are holding on to existing vehicles for longer.
In summary, CarMax is facing serious challenges on multiple fronts. Therefore, it's no surprise that institutional investors are heading for the exits. Retail investors should take note.
Glossary
13F reportable assets under management: The value of securities a fund must disclose quarterly to the SEC under Form 13F rules.
Assets under management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
Position: The amount of a particular security or asset held by an investor or fund.
Stake: The ownership interest or number of shares a fund or investor holds in a company.
Liquidated: Sold off or converted an investment position into cash, fully exiting the holding.
Quarter: A three-month period used by companies and funds for financial reporting and analysis.
TTM: The 12-month period ending with the most recent quarterly report.
Wholesale auctions: Sales events where vehicles are sold in bulk, often to dealers, rather than directly to consumers.
Subprime credit customers: Borrowers with lower credit scores, considered higher risk by lenders.
In-house financing: When a company provides loans or credit directly to its customers rather than through third parties.
Extended protection plans: Optional service contracts that cover repairs or maintenance beyond the standard warranty period.
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Bank of America is an advertising partner of Motley Fool Money. Jake Lerch has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Apple, Berkshire Hathaway, CarMax, and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
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