CarMax Q1 beats expectations but used car margins stay pressured; shares downgraded to hold.

CarMax reported better-than-expected first-quarter results, helped by a surprise credit reserve release. Despite this, used car profit margins remain under pressure due to price cuts and consumers opting for cheaper vehicles. Financing results exceeded expectations, though increased lending to riskier borrowers may require more credit reserves. With shares having reached the $50 price target and performance stabilizing, the analyst downgraded CarMax stock to hold.