KAR stock: buy or sell?

KAR stock price: $55.54 1.35% At close on May 21st, 2019

Updated on:
May 21st, 2019

4

KAR Auction Services ended today at $55.54 and raised a nice 1.35%.

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?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick 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 doesn't mean KAR will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is KAR Auction Services stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we found 1 rating published for KAR stock in the last month.

Is KAR a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-1-7SunTrust Banksn/aBuy

KAR stock analysis

Daily outlook

KAR Auction Services shares raised 1.35% to $55.54 today.

Shares of KAR Auction Services raised a nice 1.35% and closed at $55.54. Since price and SMA200d lines crossed up on April 16th, KAR climbed $1.39 (2.57%).

KAR stock chart (daily)

Weekly outlook

Shares of KAR Auction Services ended this week at $55.54 and gained a tiny 0.91%. By mid April KAR rocketed a wonderful 5.41% in just one week.

Price pattern shows an uptrend with two rising tops and bottoms, and now trading upwards to the $57.45 resistance. Since price and SMA40w lines crossed up by mid April, KAR climbed $2.09 (3.91%). Far behind is the all-time high KAR Auction Services marked late August 2018 and since then the price is -12.23% below that top.

KAR stock chart (weekly)

KAR stock price history

KAR stock went public on December 11th, 2009 with a price of $9.381. Since then, KAR stock surged a 492.10%, with an average of 54.70% per year. If you had invested right after KAR's IPO a $1,000 in KAR stock in 2009, it would worth $4,921.00 today.

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

KAR stock historical price chart

KAR stock reached all-time highs on August with a price of $63.28.

KAR stock price target is $65.00

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. Currently, only 1 price prediction for KAR Auction Services stock was posted in the last 30 days:
KAR stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-1-7SunTrust BanksLowers Targetn/a$65.00-
(in average)$0.00$65.000.0%

Financials and fundamental analysis

Earnings date and Earnings per Share

KAR Auction Services reported slightly good results for 2018-Q4 on February. KAR Auction Services appreciated Earnings per Share (EPS) by 3.30%, beating analysts consensus of $0.60. 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

In 2018, KAR Auction Services annual turnover soared a phenomenal 9.01% to $3,769.60 M dollars from $3,458.00 marked in 2017. Instead, its earnings margin (compared to sales) decreased to 8.70%, that is $328.00 million.

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 million with a profit margin of 7.24%. Profit margin slightly fell 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 good gain and gained 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 invest in a company, it's always worth to review its ownership structure.

KAR Auction Services shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 92.79% of all shares.

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 understanding, the following table shows ownership data compared to other related stocks:

KARCPRTCRMTKMXLAD
Market cap$7.4 B$14.9 B$671.0 M$12.8 B$2.6 B
Total shares133.3 M228.2 M6.7 M166.2 M22.4 M
Float shares132.3 M199.4 M6.3 M153.8 M18.2 M
  - Institutional holdings (%)0.0%86.9%74.9%106.1%111.9%
  - Insider holdings (%)92.8%12.9%8.2%0.5%1.8%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

KAR summary

Tuesday, May 21st, 2019
Open$55.02
Close$55.54
Day range$54.94 - $55.79
Previous close$54.80
Session gain1.35%
Average true range$1.09
50d mov avg$53.15
100d mov avg$51.33
200d mov avg$54.23
Daily pattern
Weekly pattern lb02a

KAR Auction Services performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. We selected Copart, America's Car-Mart, CarMax and Lithia Motors as the bechmarking frame for KAR Auction Services stock.
Stock3m6m12m
KARKAR Auction Servi...18.88%-0.45%7.10%
CPRTCopart12.13%34.13%20.48%
CRMTAmerica's Car...16.37%41.44%54.68%
KMXCarMax26.96%23.49%14.24%
LADLithia Motors28.80%39.81%18.63%

KAR Auction Services competitors

We chose a few stocks to conform a list of KAR Auction Services competitors to watch if you are interested in investing in KAR: