KAR stock: buy or sell?
October 18th, 2019
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.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
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.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-7-1||JPMorgan Chase & Co.||Overweight||Neutral|
|2019-6-28||Robert W. Baird||Outperform||Outperform|
KAR stock analysis
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 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 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 $45.10Predicting 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:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-6-28||Barrington Research||Set Price Target||n/a||$43.00||-|
|2019-1-7||SunTrust Banks||Lowers Target||n/a||$65.00||-|
Financials and fundamental analysis
Earnings date and Earnings per ShareKAR 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.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsIn 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.
|2013||$2,170 M||-||$68 M3.1%||-|
|2014||$2,365 M||8.96%||$169 M7.2%||150.07%|
|2015||$2,640 M||11.63%||$215 M8.1%||26.76%|
|2016||$3,150 M||19.34%||$222 M7.1%||3.63%|
|2017||$3,458 M||9.77%||$362 M10.5%||62.77%|
|2018||$3,770 M||9.01%||$328 M8.7%||-9.39%|
Quarterly financial resultsKAR 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.
|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 M||5.62%||$173 M19.4%||175.16%|
|2018-Q1||$951 M||6.75%||$90 M9.5%||-47.92%|
|2018-Q2||$957 M||0.64%||$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 ownershipWhen 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:
|Market cap||$3.3 B||$19.1 B||$597.3 M||$15.5 B||$2.9 B|
|Total shares||133.5 M||232.3 M||6.7 M||164.4 M||22.4 M|
|Float shares||132.5 M||202.1 M||6.2 M||153.6 M||19.6 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 selling||0.0%||0.0%||0.0%||0.0%||0.0%|
|Friday, October 18th, 2019|
|Day range||$24.24 - $24.96|
|Average true range||$0.54|
|50d mov avg||$25.06|
|100d mov avg||$24.63|
|200d mov avg||$21.99|
KAR Auction Services performanceTo 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.
|KARKAR Auction Servi...||-0.56%||17.58%||19.16%|