So, Courant Investment Management apparently decided CarMax wasn’t worth the parking space. They dumped their entire $11.1 million stake. Which, let’s be honest, is the financial equivalent of Marie Kondo-ing your portfolio. Does it spark joy? No? Out it goes. I’m less interested in the selling than why they sold. Everyone’s chasing “growth,” but sometimes, the smartest move is admitting you miscalculated the whole used-car-empire thing.
What Happened (Or, “The Plot Thickens…Or Doesn’t”)
Courant just…left. Completely exited their 247,520-share position in CarMax. It’s a clean break, like a bad date you don’t even bother to ghost. The timing is…interesting. We’re talking about a company that, until recently, was supposed to be immune to the whole “economic downturn” thing. Turns out, people still notice when a used Honda Civic costs the same as a down payment on a small island.
What Else to Know (The “Where Did All the Money Go?” Edition)
While Courant was busy rethinking its automotive strategy, here’s where their money did land:
- NYSE:JPM: $26.97 million (Apparently, banks are still a safe bet. Shocker.)
- NYSE:PGR: $26.45 million (Progressive. Because everyone needs insurance…especially when their used car breaks down.)
- NYSE:SCHW: $18.33 million (Schwab. For when you need to figure out how to recoup your losses.)
- NASDAQ:ULTA: $14.02 million (Beauty products. Because retail therapy is a thing.)
- NASDAQ:FISV: $12.76 million (Financial services. See Schwab.)
As of January 21st, CarMax shares were circling the drain at $48.75—down a cool 38.7% year-over-year. The S&P 500, meanwhile, is off having a lovely time. It’s like watching a rom-com where one character is thriving and the other is…well, selling used cars.
Company Overview (The Cliff Notes Version)
| Metric | Value |
|---|---|
| Revenue (TTM) | $25.94 billion |
| Net Income (TTM) | $457.84 million |
| Price (as of 1/21/26) | $48.75 |
| 1-Year Price Change | (38.68%) |
Company Snapshot (Or, “What Do They Even Do?”)
CarMax sells used cars. They sell a lot of used cars. They also offer financing, warranties, and the vague promise of a “hassle-free” experience. Which, let’s be real, is corporate-speak for “we’ll up-sell you everything under the sun.” They’re aiming for convenience, transparency, and a wide range of financing options. Which sounds great, until you realize everyone else is doing the same thing.
What This Transaction Means for Investors (The “Read Between the Lines” Edition)
Look, capital rotation is always telling. It’s not about conviction; it’s about where the smart money is going. Courant isn’t trimming risk; they’re hitting the eject button. They’re clearly betting that CarMax’s recovery is either a long way off or just…not going to happen. And honestly, the recent earnings report explains why. Third-quarter net earnings plummeted 50% year-over-year, with EPS dropping to a measly $0.43. Even the finance side—usually a reliable cash cow—only saw a 9% increase.
Management is scrambling with cost-cutting measures—targeting $150 million in savings by 2027—and repurchasing stock. But those are Band-Aids on a gaping wound. They can’t magically fix a slowdown in used car sales. The market has spoken. And it’s saying, “Maybe buying a slightly newer car isn’t such a bad idea after all.”
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2026-01-24 15:03