Should You Buy CarMax While It's Below $45?
It's been a bumpy ride as of late for CarMax (NYSE: KMX). A turnaround could be in store, though. As of March 16, the auto retailer has a new CEO in Keith Barr. The leadership transition marks the end of uncertainty in the company's C-suite. The stock, which is down over 40% in the past 12 months, is trading at a discount and could be a solid buying opportunity now.
There are execution risks and rough roads to navigate in the used-car market, but CarMax is charting a new path for itself, and the turnaround has begun. Should investors consider buying CarMax while it's under $45? Let's take a look at how the largest retailer of used cars in U.S. is faring.
CarMax is a company in transition. In addition to the new CEO, CarMax is facing pressure from activist investor Starboard Value. Starboard has taken a significant stake in CarMax, valued at roughly $350 million, and recently nominated two new members to the board of directors. Starboard was also behind the push to hire Barr as the permanent CEO.
Source Fool.com
