KAR stock: buy or sell?

KAR stock price: $11.80 -3.28% At close on March 27th, 2020

Updated on:
March 27th, 2020

2

Shares of KAR Auction Services ended yesterday at $11.80 and dropped a godawful -3.28%. On Monday KAR collapsed a bloodcurdling -18.32%. On Wednesday KAR skyrocketed an extraordinary 14.31%.

KAR Auction Services, Inc., together with its subsidiaries, provides used car auction and salvage auction services in the United States, Canada, Mexico, and the United Kingdom.

Should I buy KAR stock?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best moment to buy them. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

Currently, KAR Auction Services stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is KAR Auction Services stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. Unfortunately, we couldn't detect any rating for KAR stock for the last 30 days.

KAR stock analysis

Daily outlook

Shares of KAR Auction Services dropped a godawful -3.28% and closed at $11.80.

Shares of KAR Auction Services ended yesterday at $11.80 and dropped a godawful -3.28%. For the last 37 days when KAR stock price broke down the SMA200d line, it slid $-11.14 per share (-48.56%).

KAR stock chart (daily)

Weekly outlook

After sliding a bloodcurdling -43.54% in a week last week, KAR Auction Services closed this week at $11.80 and slightly fell a fatal -2.32%. With this, it's been 5 sliding weeks in a row, loosing $-10.15 (-45.78%).

The support didn't resisted and KAR fell deeper. Far behind is the all-time high KAR Auction Services recorded early September and since then the price is -57.51% below that top. Since price and 40-weeks moving average lines crossed down early November, KAR fell $-12.84 per share (-52.11%). Trading stocks that are under the 40-weeks (that is, 200-days) moving average mark is not recommended by many experts, as it indicates that the stock has not enough institutional support.

KAR stock chart (weekly)

KAR stock price history

KAR IPO was on December 11th, 2009 at $2.45 per share1. Since then, KAR stock grew a 381.60%, with a yearly average of 38.20%. If you had invested right after KAR's IPO a $1,000 in KAR stock in 2009, it would worth $3,816.00 today.

1: Adjusted price after possible price splits or reverse-splits.

KAR stock historical price chart

KAR stock reached all-time highs on September with a price of $27.77.

KAR stock price target

How much a stock will be priced tomorrow or next week is quite unpredictable However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last 30 days we have not found any price forecast for KAR Auction Services stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

, KAR Auction Services reported its latest financial data, posting a slightly fine climb for the Earnings per Share (EPS) ratio. Analyst expected $0.60 per share, but KAR Auction Services posted $0.62.
KAR earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a0.5n/a
2017-Q2-n/a0.54n/a
2017-Q32017-10-310.50.5714.0%
2017-Q42018-02-200.520.6321.2%
2018-Q12018-05-080.740.8210.8%
2018-Q22018-08-070.790.823.8%
2018-Q32018-11-060.710.7-1.4%
2018-Q42019-02-190.60.623.3%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

Compared to 2017, last anual revenues report draw an impressive gain of 9.01% to $3,769.60 million USD. When comparing 2018 vs 2017, instead, profit margin (that is, the net income divided by revenues) slightly fell a -1.77% to 8.70%.

KAR annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$2,170 M-$68 M3.1%-
2014$2,365 M8.96%$169 M7.2%150.07%
2015$2,640 M11.63%$215 M8.1%26.76%
2016$3,150 M19.34%$222 M7.1%3.63%
2017$3,458 M9.77%$362 M10.5%62.77%
2018$3,770 M9.01%$328 M8.7%-9.39%

Quarterly financial results

KAR Auction Services posted $929.00 M in revenues for 2018-Q4, a -0.48% less compared to previous quarter. Reported quarter earnings marked $67.30 M with a profit margin of 7.24%. Profit margin depreciated a -1.06% compared to previous quarter when profit margin was 8.30%. When comparing sales to same quarter last year, KAR Auction Services sales marked a decent growth and grew a 4.34%. Looking back to recent quarterly results, KAR Auction Services posted 2 negative quarters in a row.
KAR quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$867 M-$69 M8.0%-
2017-Q2$862 M-0.52%$57 M6.6%-17.34%
2017-Q3$843 M-2.22%$63 M7.4%9.79%
2017-Q4$890 M5.62%$173 M19.4%175.16%
2018-Q1$951 M6.75%$90 M9.5%-47.92%
2018-Q2$957 M0.64%$93 M9.7%3.56%
2018-Q3$934 M-2.41%$78 M8.3%-16.85%
2018-Q4$929 M-0.48%$67 M7.2%-13.16%

KAR Auction Services ownership

When you are planning to buy a stock, it's worth to review its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For KAR Auction Services, 68.19% of all outstanding shares are owned by its staff.

In case of KAR Auction Services stock, 0.00% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for KAR stock account 0.00%, no big difference from last month.

For a better context understanding, the following table shows ownership data compared to other related companies:

KAR
Market cap$1.5 B
Total shares128.8 M
Float shares127.6 M
  - Institutional holdings (%)0.0%
  - Insider holdings (%)68.2%
Shares in short selling0.0%

KAR summary

Friday, March 27th, 2020
Open$11.75
Close$11.80
Day range$11.47 - $12.21
Previous close$12.20
Session gain-3.28%
Average true range$1.85
50d mov avg$19.09
100d mov avg$20.23
200d mov avg$22.33
Daily patternlt03a
Weekly pattern lt06c

KAR Auction Services performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. We picked as the bechmarking frame for KAR Auction Services stock.
Stock3m6m12m
KARKAR Auction Servi...-44.63%-51.02%-36.39%

KAR Auction Services competitors

Unfortunately, we could not find any public company that could be defined as KAR Auction Services competitor. This doesn't mean KAR Auction Services does not have any competitor in the market, it's just we could not detected it.