KAR stock: buy or sell?

KAR stock price: $24.81 2.01% At close on October 18th, 2019

Updated on:
October 18th, 2019

3

KAR Auction Services shares crossed up the simple moving average line of 100 days today and closed at $24.81, jumped a 2.01%. Oct 18th was the 4th green day in a row, marking 4.92%.

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?

Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best time 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 fall 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 collected 7 ratings published for KAR stock in the last 30 days.

The general sentiment of these ratings is bullish for KAR stock, with 5 positive ratings.
Is KAR a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-7-2GuggenheimNeutralSell
2019-7-1SunTrust Banksn/aBuy
2019-7-1JPMorgan Chase & Co.OverweightNeutral
2019-6-28Robert W. BairdOutperformOutperform
2019-6-28Barrington Researchn/aBuy
2019-6-28Barrington Researchn/aBuy
2019-1-7SunTrust Banksn/aBuy

KAR stock analysis

Daily outlook

KAR Auction Services crossed up the SMA line of 100 days today and closed at $24.81.

KAR Auction Services crossed up the SMA line of 100d today and closed at $24.81. Since June when SMA100d and SMA200d crossed up, KAR price gained $1.50 per share (6.44%). On Sep 9th, KAR hit new all time highs, pushing higher previous ATH of $26.95 recorded on August. New ATHs are usual entry points for many trading setups as there aren't higher resistences.

KAR stock chart (daily)

Weekly outlook

KAR Auction Services shares rose 4.24% this week, ending at $24.81. Late August KAR rocketed an extraordinary 7.40% in just one week.

KAR Auction Services stock is trading in the range of its last top and last bottom. Loosing would mean breaking the current uptrend. Breakdowns under last bottom are selling point signals for some trading strategies. Not so far away is the last all-time high KAR Auction Services marked early September. Since SMA20d and SMA40w crossed up by mid June, KAR price climbed $2.17 per share (9.58%). Since price and SMA40w lines crossed up by mid April, KAR climbed $4.85 (24.30%).

KAR stock chart (weekly)

KAR stock price history

KAR stock went public on December 11th, 2009 with a price of $3.501. Since then, KAR stock surged a 608.90%, with an average of 67.70% per year. If you had invested $1,000 in KAR stock in 2009, it would worth $6,089.00 today.

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

KAR stock historical price chart

KAR stock reached all-time highs on Sep/9 with a price of $28.40.

KAR stock price target is $45.10

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. 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 month we found 4 price predictions for KAR stock:
KAR stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-7-1SunTrust BanksReiterates$65.00$30.00-53.8%
2019-6-28Barrington ResearchSet Price Targetn/a$43.00-
2019-6-28Barrington ResearchReiteratesn/a$42.50-
2019-1-7SunTrust BanksLowers Targetn/a$65.00-
(in average)$65.00$45.10-31.0%
The price forecast for KAR Auction Services stock is $45.10, moving in a range between $65.00 and $30.00. In average, analysts' outlook on KAR price forecast is negative, downsizing the prediction by a -31.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

KAR Auction Services presented slightly good results for 2018-Q4 on February. KAR Auction Services gained 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 rose a phenomenal 9.01% to $3,769.60 million dollars from $3,458.00 marked in 2017. In contrary, its profit margin (compared to sales) declined 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 depreciated a -1.06% compared to previous quarter when profit margin was 8.30%. When comparing turnover to same quarter last year, KAR Auction Services sales marked a fine growth and appreciated 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 shares of a company, it's always worth to have a look 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.

The following table compares ownership indicators for other stocks related to KAR Auction Services:

KARCPRTCRMTKMXLAD
Market cap$3.3 B$19.1 B$597.3 M$15.5 B$2.9 B
Total shares133.5 M232.3 M6.7 M164.4 M22.4 M
Float shares132.5 M202.1 M6.2 M153.6 M19.6 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

Friday, October 18th, 2019
Open$24.29
Close$24.81
Day range$24.24 - $24.96
Previous close$24.32
Session gain2.01%
Average true range$0.54
50d mov avg$25.06
100d mov avg$24.63
200d mov avg$21.99
Daily patternlt03a
Weekly pattern lt06a

KAR Auction Services performance

To better understand KAR Auction Services performance you must compare its gains with other related stocks in same sector or industry. For KAR Auction Services, the comparison is made against Copart, America's Car-Mart, CarMax and Lithia Motors.
Stock3m6m12m
KARKAR Auction Servi...-0.56%17.58%19.16%
CPRTCopart6.21%26.53%67.05%
CRMTAmerica's Car...4.53%-5.52%25.79%
KMXCarMax11.13%22.44%37.33%
LADLithia Motors11.68%32.54%78.52%

KAR Auction Services competitors

One check before trading any stock is to have a look a list of its competitors, in this case for KAR Auction Services. We selected 4 companies as KAR Auction Services competitors as they are in the same industry or have similar market objectives.