Kar Auction Services Stock Buy Hold or Sell Recommendation
| KAR Stock | USD 20.20 0.09 0.45% |
Considering the 90-day investment horizon and your way above-average risk tolerance, our recommendation regarding KAR Auction Services is 'Buy'. A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell KAR Auction Services given historical horizon and risk tolerance towards KAR Auction. When Macroaxis issues a 'buy' or 'sell' recommendation for KAR Auction Services, the advice is generated through an automated system that utilizes algorithms and statistical models.
Check out KAR Auction Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note, we conduct extensive research on individual companies such as KAR and provide practical buy, sell, or hold advice based on investors' constraints. KAR Auction Services. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation.
KAR |
Execute KAR Auction Buy or Sell Advice
The KAR recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on KAR Auction Services. Macroaxis does not own or have any residual interests in KAR Auction Services or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute KAR Auction's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Buy
Market Performance | OK | Details | |
Volatility | Not too volatile | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
KAR Auction Trading Alerts and Improvement Suggestions
| The company reported the last year's revenue of 1.65 B. Reported Net Loss for the year was (154.1 M) with profit before taxes, overhead, and interest of 685.1 M. | |
| Over 98.0% of the company shares are owned by institutional investors | |
| Latest headline from finance.yahoo.com: OPENLANE Now Trades Above Golden Cross Time to Buy |
KAR Auction Returns Distribution Density
The distribution of KAR Auction's historical returns is an attempt to chart the uncertainty of KAR Auction's future price movements. The chart of the probability distribution of KAR Auction daily returns describes the distribution of returns around its average expected value. We use KAR Auction Services price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of KAR Auction returns is essential to provide solid investment advice for KAR Auction.
| Mean Return | 0.27 | Value At Risk | -2.01 | Potential Upside | 2.47 | Standard Deviation | 2.18 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of KAR Auction historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
KAR Stock Institutional Investors
The KAR Auction's institutional investors refer to entities that pool money to purchase KAR Auction's securities or originate loans. These institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds.
| Shares | Cadian Capital Management Lp | 2024-09-30 | 2.4 M | Paradice Investment Management Llc | 2024-09-30 | 2.3 M | Morgan Stanley - Brokerage Accounts | 2024-06-30 | 1.8 M | Charles Schwab Investment Management Inc | 2024-09-30 | 1.8 M | Marathon Asset Mgmt Ltd | 2024-09-30 | 1.7 M | William Blair Investment Management, Llc | 2024-09-30 | 1.5 M | D. E. Shaw & Co Lp | 2024-09-30 | 1.3 M | Northern Trust Corp | 2024-09-30 | 1.3 M | Deutsche Bank Ag | 2024-06-30 | 1.1 M | Blackrock Inc | 2024-06-30 | 16.8 M | Vanguard Group Inc | 2024-09-30 | 12.2 M |
KAR Auction Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change In Cash | 256.2M | 251.4M | (596.5M) | 74.3M | (118.8M) | (112.9M) | |
| Free Cash Flow | 380.4M | 283M | 304.7M | (473.4M) | 183.4M | 187.8M | |
| Depreciation | 188.7M | 191.3M | 183M | 100.2M | 101.5M | 149.0M | |
| Other Non Cash Items | 131.7M | 95M | 41.9M | (640.8M) | 327.5M | 343.9M | |
| Capital Expenditures | 161.6M | 101.4M | 108.5M | 60.9M | 52M | 49.4M | |
| Net Income | 188.5M | 500K | 66.5M | 241.2M | (154.1M) | (146.4M) | |
| End Period Cash Flow | 560.9M | 812.3M | 215.8M | 277.7M | 158.9M | 288.6M | |
| Change To Inventory | (19.8M) | 27.1M | (192.5M) | 68.6M | 78.9M | 82.8M | |
| Investments | (132.7M) | 170.6M | 16M | 2.1B | 132.2M | 77.6M | |
| Change Receivables | (3M) | 117.9M | (94.1M) | 107.7M | 123.9M | 130.0M | |
| Dividends Paid | 164.3M | 49M | 4.8M | 22.2M | 44.4M | 73.9M | |
| Change To Netincome | 95.7M | 46.3M | 53.2M | (666.5M) | (599.9M) | (569.9M) | |
| Net Borrowings | (816.8M) | (48.9M) | 399.7M | (1.4B) | (1.3B) | (1.2B) |
KAR Auction Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to KAR Auction or Commercial Services & Supplies sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that KAR Auction's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a KAR stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.09 | |
β | Beta against Dow Jones | 1.30 | |
σ | Overall volatility | 2.21 | |
Ir | Information ratio | 0.06 |
KAR Auction Volatility Alert
KAR Auction Services has relatively low volatility with skewness of 2.6 and kurtosis of 12.1. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure KAR Auction's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact KAR Auction's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.KAR Auction Fundamentals Vs Peers
Comparing KAR Auction's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze KAR Auction's direct or indirect competition across all of the common fundamentals between KAR Auction and the related equities. This way, we can detect undervalued stocks with similar characteristics as KAR Auction or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of KAR Auction's fundamental indicators could also be used in its relative valuation, which is a method of valuing KAR Auction by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare KAR Auction to competition |
| Fundamentals | KAR Auction | Peer Average |
| Return On Equity | 0.0369 | -0.31 |
| Return On Asset | 0.0342 | -0.14 |
| Profit Margin | 0.04 % | (1.27) % |
| Operating Margin | 0.16 % | (5.51) % |
| Current Valuation | 2.36 B | 16.62 B |
| Shares Outstanding | 106.84 M | 571.82 M |
| Shares Owned By Insiders | 1.81 % | 10.09 % |
| Shares Owned By Institutions | 98.19 % | 39.21 % |
| Number Of Shares Shorted | 4.17 M | 4.71 M |
| Price To Earning | 116.25 X | 28.72 X |
| Price To Book | 1.63 X | 9.51 X |
| Price To Sales | 1.28 X | 11.42 X |
| Revenue | 1.65 B | 9.43 B |
| Gross Profit | 685.1 M | 27.38 B |
| EBITDA | 110.8 M | 3.9 B |
| Net Income | (154.1 M) | 570.98 M |
| Cash And Equivalents | 225.7 M | 2.7 B |
| Cash Per Share | 6.95 X | 5.01 X |
| Total Debt | 427.4 M | 5.32 B |
| Debt To Equity | 1.26 % | 48.70 % |
| Current Ratio | 1.13 X | 2.16 X |
| Book Value Per Share | 12.42 X | 1.93 K |
| Cash Flow From Operations | 235.4 M | 971.22 M |
| Short Ratio | 6.38 X | 4.00 X |
| Earnings Per Share | 0.18 X | 3.12 X |
| Price To Earnings To Growth | 1.34 X | 4.89 X |
| Target Price | 21.5 | |
| Number Of Employees | 3.83 K | 18.84 K |
| Beta | 1.45 | -0.15 |
| Market Capitalization | 2.16 B | 19.03 B |
| Total Asset | 4.73 B | 29.47 B |
| Retained Earnings | 624.4 M | 9.33 B |
| Working Capital | 363.1 M | 1.48 B |
Note: Acquisition by Brad Lakhia of 4985 shares of KAR Auction at 20.06 subject to Rule 16b-3 [view details]
KAR Auction Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as KAR . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About KAR Auction Buy or Sell Advice
When is the right time to buy or sell KAR Auction Services? Buying financial instruments such as KAR Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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Beer and Liquor
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Beer and Liquor theme has 32 constituents at this time.
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Additional Tools for KAR Stock Analysis
When running KAR Auction's price analysis, check to measure KAR Auction's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy KAR Auction is operating at the current time. Most of KAR Auction's value examination focuses on studying past and present price action to predict the probability of KAR Auction's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move KAR Auction's price. Additionally, you may evaluate how the addition of KAR Auction to your portfolios can decrease your overall portfolio volatility.