KAR stock: buy or sell?
March 27th, 2020
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.
|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.Unfortunately, we couldn't detect any rating for KAR stock for the last 30 days.
KAR stock analysis
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%).
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 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 targetHow 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.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsCompared 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%.
|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 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.
|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 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:
|Market cap||$1.5 B|
|Total shares||128.8 M|
|Float shares||127.6 M|
|- Institutional holdings (%)||0.0%|
|- Insider holdings (%)||68.2%|
|Shares in short selling||0.0%|
|Friday, March 27th, 2020|
|Day range||$11.47 - $12.21|
|Average true range||$1.85|
|50d mov avg||$19.09|
|100d mov avg||$20.23|
|200d mov avg||$22.33|
KAR Auction Services performancePerformance 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.
|KARKAR Auction Servi...||-44.63%||-51.02%||-36.39%|