Investment Manager Dips Back Into Used Vehicle Retailer, According to Recent Filing
Key Points
Bought 84,086 CarMax shares
Post-trade stake: 406,657 shares valued at $18.25 million
CarMax now represents 2.1% of fund AUM
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Eubel Brady & Suttman Asset Management reported a purchase of 84,086 shares of CarMax (NYSE:KMX)on its November 6, 2025, SEC filing.
What Happened
According to a November 6, 2025, SEC filing, The firm increased its holdings in CarMax by 84,086 shares during Q3 2025. The fund's total position reached 406,657 shares, valued at $18.25 million as of September 30, 2025.
What Else to Know
This was a buy; CarMax now accounts for 2.1% of Eubel Brady & Suttman's 13F reportable assets
Top holdings after the filing:
- BN: $44.62 million (5.6% of AUM) as of September 30, 2025
- WBD: $44.48 million (5.5% of AUM) as of September 30, 2025
- GTX: $39.19 million (4.9% of AUM) as of September 30, 2025
- BRK-B: $38.29 million (4.8% of AUM) as of September 30, 2025
- MDT: $31.98 million (4.0% of AUM) as of September 30, 2025
As of November 5, 2025, CarMax shares were priced at $40.81, down 44.75% over the past year; shares have underperformed the S&P 500 by 63.11 percentage points over the past year.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $27.79 billion |
| Net Income (TTM) | $521.07 million |
| Price (as of market close 2025-11-05) | $40.81 |
| One-Year Price Change | -44.75% |
Company Snapshot
CarMax offers a wide selection of used vehicles, including domestic, imported, luxury, hybrid, and electric models, as well as related services such as extended protection plans and vehicle reconditioning.
Operates a retail-driven business model with revenue generated from used vehicle sales, wholesale auctions, and in-house auto financing through CarMax Auto Finance.
Serves individual retail consumers across the United States seeking a transparent, streamlined used car buying experience.
Foolish take
By acquiring more than $4 million worth of CarMax stock, Eubel Brady & Suttman Management, an Ohio-based investment management company, is demonstrating strong conviction in its CarMax position, even as the company's stock continues to slip lower.
Shares of the used vehicle retailer have plummeted by more than 50% year-to-date, massively underperforming the S&P 500, which is up 17% this year.
CarMax is navigating multiple challenges. The company's CEO has announced his upcoming retirement on December 1st; management has provided bearish guidance indicating sales and profits will miss Wall Street expectations. In addition, the company's stock has been removed from the S&P 500 as its market cap has fallen to under $7 billion.
This last development has resulted in other institutions reducing their stakes in CarMax -- particularly if their strategy is based around replicating the S&P 500's performance. However, Eubel Brady & Suttman is doing the opposite -- betting that CarMax stock is due for a turnaround.
For average investors, this transaction paints a mixed picture. Clearly, institutions are split on whether CarMax is primed for a rebound; retail investors should take note.
Glossary
13F reportable AUM: Assets under management that must be disclosed in quarterly SEC Form 13F filings by institutional investment managers.
AUM (Assets Under Management): The total market value of investments that a fund or firm manages on behalf of clients.
Stake: The amount of ownership or shares a fund or investor holds in a particular company.
Buy (in fund context): A transaction where an investment fund increases its holdings in a specific security.
Wholesale auctions: Sales events where vehicles are sold in bulk, often to dealers, rather than individual retail customers.
In-house auto financing: Financing options provided directly by a company, rather than through third-party lenders, to help customers purchase vehicles.
CarMax Auto Finance: CarMax's own financing division that offers loans to customers buying vehicles from CarMax.
TTM: The 12-month period ending with the most recent quarterly report.
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Jake Lerch has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway, Brookfield, Brookfield Corporation, CarMax, and Warner Bros. Discovery. The Motley Fool recommends Garrett Motion and Medtronic and recommends the following options: long January 2026 $75 calls on Medtronic and short January 2026 $85 calls on Medtronic. The Motley Fool has a disclosure policy.
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