Here’s Why CarMax (KMX) Shares Retreated in Q3

Madison Investments, an investment advisor, released its “Madison Mid Cap Fund” third-quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund (Class Y) returned -1.8% compared to a -4.7% decline for the Russell Midcap Index. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Madison Mid Cap Fund highlighted stocks like CarMax, Inc. (NYSE:KMX) in the third quarter 2023 investor letter. Headquartered in Richmond, Virginia, CarMax, Inc. (NYSE:KMX) is a used vehicle retailer. On October 16, 2023, CarMax, Inc. (NYSE:KMX) stock closed at $68.27 per share. One-month return of CarMax, Inc. (NYSE:KMX) was -16.83%, and its shares gained 12.42% of their value over the last 52 weeks. CarMax, Inc. (NYSE:KMX) has a market capitalization of $10.809 billion.

Madison Mid Cap Fund made the following comment about CarMax, Inc. (NYSE:KMX) in its Q3 2023 investor letter:

“The bottom five detractors for the quarter were Dollar Tree, MKS Instruments, CarMax, Inc. (NYSE:KMX), Floor & Décor, and Liberty Media- Formula One. Shares in CarMax retreated following quarterly results that reflected some signs of stabilization in the weak used car market; however, investors were expecting more and impatiently punished the stock.”

CarMax, Inc. (NYSE:KMX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held CarMax, Inc. (NYSE:KMX) at the end of second quarter which was 38 in the previous quarter.

We discussed CarMax, Inc. (NYSE:KMX) in another article and shared Diamond Hill Large Cap Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.