KAR stock: buy or sell?
August 19th, 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?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. That's why is so important to define your own trading plan that matches with your character as inversor. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.
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 posted by financial analysts to indicate a particular stock's attractiveness.At Stocks2.com, we detected 7 ratings published for KAR stock in the last month. 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
Shares of KAR Auction Services closed today at $25.58 and remained steady a slightly fine 0.31%.
KAR Auction Services remained constant a slightly fine 0.31% and closed at $25.58. Since SMA100d and SMA200d crossed up on June, KAR price climbed $2.26 per share (9.69%). Since price and SMA200d lines crossed up on April, KAR climbed $6.05 (30.98%). On Aug 1st, KAR hit new all time highs, pushing higher previous ATH of $27.05 recorded on July 31st. New ATHs are usual entry points for many trading setups as there aren't higher resistences.
Shares of KAR Auction Services closed this week at $25.58 and stayed constant a tiny 0.31%. Early August KAR plummed a hair-raising -7.39% in just one week. Late July KAR skyrocketed an astounding 5.95% in just one week.
From a weekly outlook, KAR marked an uptrend of rising tops and rising bottoms. Since its last top late July at $27.15, price slid and bounced up back from $22.24. Breaking down under $22.24 would cancel the current uptrend and it might test lower supports. Note that $27.15 might act as a resistance line. Not so far away is the last all-time high KAR Auction Services marked late July. Since mid June when SMA20w and SMA40w crossed up, KAR price gained $2.79 per share (12.24%). Since early April when KAR stock price broke up the SMA40w line, it gained $6.07 (31.11%).
KAR stock price history
KAR stock went public on December 11th, 2009 with a price of $2.531. Since then, KAR stock grew a 911.10%, with a yearly average of 101.20%. If you had invested $1,000 in KAR stock in 2009, it would worth $9,111.00 today.
1: Adjusted price after possible price splits or reverse-splits.
KAR stock historical price chart
KAR stock reached all-time highs on August/1 with a price of $27.15.
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. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last month we found 4 price targets 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 reported slightly good results for 2018-Q4 on February. KAR Auction Services appreciated Earnings per Share (EPS) by 3.30%, beating experts 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 revenues rose a brilliant 9.01% to $3,769.60 M USD from $3,458.00 marked in 2017. Nonetheless, its earnings margin (compared to revenues) slightly fell 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 sales 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 declined 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 beatiful gain and raised a 4.34%. Looking back to recent quarterly results, KAR Auction Services posted 2 positive 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 company, it's worth to overview 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||$3.4 B||$17.2 B||$614.6 M||$14.1 B||$2.9 B|
|Total shares||133.3 M||228.2 M||6.7 M||166.2 M||22.4 M|
|Float shares||132.3 M||200.4 M||6.3 M||153.2 M||18.4 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%|
|Monday, August 19th, 2019|
|Day range||$25.39 - $25.82|
|Average true range||$0.97|
|50d mov avg||$24.81|
|100d mov avg||$22.72|
|200d mov avg||$20.69|
KAR Auction Services performanceStocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. For KAR Auction Services, the benchmark is made against Copart, America's Car-Mart, CarMax and Lithia Motors.
|KARKAR Auction Servi...||21.58%||48.81%||14.35%|