04:23 AM EDT, 03/11/2026 (MT Newswires) -- Starboard Value has taken a roughly $350 million stake in CarMax ( KMX ) and nominated two directors to the used-car retailer's board, urging improvements to its digital user experience, cost structure and pricing strategy, multiple media outlets reported Tuesday, citing unnamed people familiar with the matter.

According to the reports, Starboard nominated Jeffrey Smith, the firm's founder and CEO, and Bill Cobb, chief executive of Frontdoor, to join CarMax's ( KMX ) nine-member board.

The activist investor told CEO Keith Barr and the board that improving the company's omnichannel experience, boosting cost efficiency, and introducing more dynamic pricing could help drive market share gains, Reuters reported.

It added that CarMax ( KMX ) shares have fallen about 43% over the past 12 months, closing Tuesday at $42.14.

CarMax ( KMX ) did not immediately respond to MT Newswires' request for comment.