Is KAR Auction Stock a Good Investment?
KAR Auction Investment Advice | KAR |
- Examine KAR Auction's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research KAR Auction's leadership team and their track record. Good management can help KAR Auction navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Commercial Services & Supplies space and any emerging trends that could impact KAR Auction's business and its evolving consumer preferences.
- Compare KAR Auction's performance and market position to its competitors. Analyze how KAR Auction is positioned in terms of product offerings, innovation, and market share.
- Check if KAR Auction pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about KAR Auction's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in KAR Auction Services stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if KAR Auction Services is a good investment.
Sell | Buy |
Strong Hold
Market Performance | Insignificant | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine KAR Auction Stock
Researching KAR Auction's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 98.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.68. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. KAR Auction Services has Price/Earnings To Growth (PEG) ratio of 1.34. The entity last dividend was issued on the 19th of March 2020. The firm had 2642:1000 split on the 28th of June 2019.
To determine if KAR Auction is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding KAR Auction's research are outlined below:
| KAR Auction Services is unlikely to experience financial distress in the next 2 years | |
| KAR Auction Services has a strong financial position based on the latest SEC filings | |
| Over 98.0% of the company shares are owned by institutional investors | |
| Latest headline from MacroaxisInsider: Acquisition by Peter Kelly of 167305 shares of KAR Auction subject to Rule 16b-3 |
KAR Auction Quarterly Liabilities And Stockholders Equity |
|
KAR Auction uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in KAR Auction Services. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to KAR Auction's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 20th of February 2024 Upcoming Quarterly Report | View | |
| 7th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 20th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact KAR Auction's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises KAR Auction's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2021-11-02 | 2021-09-30 | 0.1 | 0.08 | -0.02 | 20 | ||
2024-02-20 | 2023-12-31 | 0.13 | 0.16 | 0.03 | 23 | ||
2023-11-01 | 2023-09-30 | 0.15 | 0.18 | 0.03 | 20 | ||
2023-05-02 | 2023-03-31 | 0.09 | 0.12 | 0.03 | 33 | ||
2012-11-06 | 2012-09-30 | 0.26 | 0.23 | -0.03 | 11 | ||
2010-11-03 | 2010-09-30 | 0.25 | 0.28 | 0.03 | 12 | ||
2024-11-06 | 2024-09-30 | 0.22 | 0.26 | 0.04 | 18 | ||
2022-11-01 | 2022-09-30 | 0.13 | 0.09 | -0.04 | 30 |
KAR Auction Target Price Consensus
KAR target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. KAR Auction's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 7 | Buy |
Most KAR analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand KAR stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of KAR Auction Services, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationKAR Auction Target Price Projection
KAR Auction's current and average target prices are 21.12 and 22.17, respectively. The current price of KAR Auction is the price at which KAR Auction Services is currently trading. On the other hand, KAR Auction's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
KAR Auction Market Quote on 26th of March 2025
Target Price
Analyst Consensus On KAR Auction Target Price
KAR Auction Analyst Ratings
KAR Auction's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about KAR Auction stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of KAR Auction's financials, market performance, and future outlook by experienced professionals. KAR Auction's historical ratings below, therefore, can serve as a valuable tool for investors.Know KAR Auction's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as KAR Auction is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading KAR Auction Services backward and forwards among themselves. KAR Auction's institutional investor refers to the entity that pools money to purchase KAR Auction's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Paradice Investment Management Llc | 2024-09-30 | 2.3 M | Brown Advisory Holdings Inc | 2024-12-31 | 2.2 M | Cadian Capital Management Lp | 2024-12-31 | 1.9 M | Charles Schwab Investment Management Inc | 2024-12-31 | 1.8 M | Marathon Asset Mgmt Ltd | 2024-12-31 | 1.6 M | William Blair Investment Management, Llc | 2024-12-31 | 1.5 M | Northern Trust Corp | 2024-12-31 | 1.4 M | D. E. Shaw & Co Lp | 2024-12-31 | 1.3 M | Zuckerman Investment Group, Llc | 2024-12-31 | 1 M | Blackrock Inc | 2024-12-31 | 16.7 M | Vanguard Group Inc | 2024-12-31 | 12 M |
KAR Auction's market capitalization trends
The company currently falls under 'Mid-Cap' category with a total capitalization of 2.26 B.Market Cap |
|
KAR Auction's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.04 | 0.02 | |
| Return On Capital Employed | 0.09 | 0.06 | |
| Return On Assets | 0.02 | 0.03 | |
| Return On Equity | 0.08 | 0.09 |
Determining KAR Auction's profitability involves analyzing its financial statements and using various financial metrics to determine if KAR Auction is a good buy. For example, gross profit margin measures KAR Auction's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of KAR Auction's profitability and make more informed investment decisions.
KAR Auction's Earnings Breakdown by Geography
Evaluate KAR Auction's management efficiency
KAR Auction Services has Return on Asset of 0.0382 % which means that on every $100 spent on assets, it made $0.0382 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.0564 %, implying that it generated $0.0564 on every 100 dollars invested. KAR Auction's management efficiency ratios could be used to measure how well KAR Auction manages its routine affairs as well as how well it operates its assets and liabilities. At this time, KAR Auction's Return On Assets are relatively stable compared to the past year. As of 03/26/2025, Return On Equity is likely to grow to 0.09, while Return On Tangible Assets are likely to drop 0.02. At this time, KAR Auction's Return On Assets are relatively stable compared to the past year. As of 03/26/2025, Asset Turnover is likely to grow to 0.44, while Other Assets are likely to drop slightly above 62.6 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 12.43 | 9.30 | |
| Tangible Book Value Per Share | (1.47) | (1.54) | |
| Enterprise Value Over EBITDA | 8.30 | 7.45 | |
| Price Book Value Ratio | 1.60 | 0.85 | |
| Enterprise Value Multiple | 8.30 | 7.45 | |
| Price Fair Value | 1.60 | 0.85 | |
| Enterprise Value | 4.3 B | 3 B |
Evaluating the management effectiveness of KAR Auction allows investors to assess its financial health and operational efficiency. Coupled with an analysis of its growth prospects and the current market dynamics, we evaluate the stock's true value and future potential. Key indicators such as revenue, earnings or debt levels are examined alongside external factors like economic trends and regulatory changes. The KAR Stock analysis seeks to determine whether the stock is undervalued, appropriately priced, or overvalued, thereby guiding your investment decisions.
Beta 1.54 |
Basic technical analysis of KAR Stock
As of the 26th of March, KAR Auction secures the Market Risk Adjusted Performance of 0.0668, mean deviation of 1.37, and Downside Deviation of 1.79. KAR Auction Services technical analysis lets you operate historical price patterns with an objective to determine a pattern that forecasts the direction of the entity's future prices. Please verify KAR Auction Services variance, value at risk, as well as the relationship between the Value At Risk and skewness to decide if KAR Auction Services is priced fairly, providing market reflects its recent price of 21.12 per share. Given that KAR Auction Services has jensen alpha of 0.0622, we recommend you to check KAR Auction's last-minute market performance to make sure the company can sustain itself in the future.KAR Auction's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific KAR Auction insiders, such as employees or executives, is commonly permitted as long as it does not rely on KAR Auction's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases KAR Auction insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
KAR Auction's Outstanding Corporate Bonds
KAR Auction issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. KAR Auction Services uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most KAR bonds can be classified according to their maturity, which is the date when KAR Auction Services has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Dana 575 percent Corp BondUS235822AB96 | View | |
| KAR Auction Services Corp BondUS48238TAA79 | View | |
| Morgan Stanley 3971 Corp BondUS61744YAL20 | View | |
| AerCap Global Aviation Corp BondUS00773HAA59 | View |
Understand KAR Auction's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing KAR Auction's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0412 | |||
| Market Risk Adjusted Performance | 0.0668 | |||
| Mean Deviation | 1.37 | |||
| Semi Deviation | 1.66 | |||
| Downside Deviation | 1.79 | |||
| Coefficient Of Variation | 2348.88 | |||
| Standard Deviation | 1.77 | |||
| Variance | 3.14 | |||
| Information Ratio | 0.0353 | |||
| Jensen Alpha | 0.0622 | |||
| Total Risk Alpha | 0.0596 | |||
| Sortino Ratio | 0.035 | |||
| Treynor Ratio | 0.0568 | |||
| Maximum Drawdown | 7.92 | |||
| Value At Risk | (3.08) | |||
| Potential Upside | 2.63 | |||
| Downside Variance | 3.21 | |||
| Semi Variance | 2.74 | |||
| Expected Short fall | (1.41) | |||
| Skewness | 0.1166 | |||
| Kurtosis | (0.1) |
| Risk Adjusted Performance | 0.0412 | |||
| Market Risk Adjusted Performance | 0.0668 | |||
| Mean Deviation | 1.37 | |||
| Semi Deviation | 1.66 | |||
| Downside Deviation | 1.79 | |||
| Coefficient Of Variation | 2348.88 | |||
| Standard Deviation | 1.77 | |||
| Variance | 3.14 | |||
| Information Ratio | 0.0353 | |||
| Jensen Alpha | 0.0622 | |||
| Total Risk Alpha | 0.0596 | |||
| Sortino Ratio | 0.035 | |||
| Treynor Ratio | 0.0568 | |||
| Maximum Drawdown | 7.92 | |||
| Value At Risk | (3.08) | |||
| Potential Upside | 2.63 | |||
| Downside Variance | 3.21 | |||
| Semi Variance | 2.74 | |||
| Expected Short fall | (1.41) | |||
| Skewness | 0.1166 | |||
| Kurtosis | (0.1) |
Consider KAR Auction's intraday indicators
KAR Auction intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of KAR Auction stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
KAR Auction Corporate Filings
F4 | 4th of March 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
10K | 20th of February 2025 Annual report required by the U.S. Securities and Exchange Commission (SEC) of a company financial performance | ViewVerify |
8K | 19th of February 2025 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
10Q | 7th of November 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
KAR Stock media impact
Far too much social signal, news, headlines, and media speculation about KAR Auction that are available to investors today. That information is available publicly through KAR media outlets and privately through word of mouth or via KAR internal channels. However, regardless of the origin, that massive amount of KAR data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of KAR Auction news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of KAR Auction relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to KAR Auction's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive KAR Auction alpha.
KAR Auction Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards KAR Auction can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
KAR Auction Services Historical Investor Sentiment
Investor biases related to KAR Auction's public news can be used to forecast risks associated with an investment in KAR. The trend in average sentiment can be used to explain how an investor holding KAR can time the market purely based on public headlines and social activities around KAR Auction Services. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
KAR Auction's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for KAR Auction and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average KAR Auction news discussions. The higher the estimate score, the more favorable the investor's outlook on KAR Auction.
KAR Auction Corporate Directors
| Mary Smith | Independent Director | Profile | |
| Roy Mackenzie | Independent Director | Profile | |
| Carmel Galvin | Independent Director | Profile | |
| David DiDomenico | Independent Director | Profile |
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.