KAR Auction Services Inc. [KAR] Revenue clocked in at $2.44 billion, down -34.83% YTD: What’s Next?

KAR Auction Services Inc. [NYSE: KAR] gained 3.57% on the last trading session, reaching $14.20 price per share at the time. The company report on October 21, 2020 that KAR Auction Services, Inc. to Announce Third Quarter 2020 Earnings.

KAR Auction Services, Inc. (NYSE:KAR) will release its third quarter 2020 financial results after the market closes on Tuesday, November 3, 2020.

KAR will also be hosting an earnings conference call and webcast on Wednesday, November 4, 2020 at 8:30 a.m. Eastern. The call will be hosted by KAR’s Chief Executive Officer and Chairman of the Board, Jim Hallett and Executive Vice President and Chief Financial Officer, Eric Loughmiller. The conference call may be accessed by calling 1-844-778-4145 and entering participant passcode 8592422, while the live web cast will be available at the investor relations section of karglobal.com.

KAR Auction Services Inc. represents 129.30 million in outstanding shares, while the company has a total market value of $1.80 billion with the latest information. KAR stock price has been found in the range of $13.69 to $14.33.

If compared to the average trading volume of 1.86M shares, KAR reached a trading volume of 2005899 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about KAR Auction Services Inc. [KAR]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for KAR shares is $21.75 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on KAR stock is a recommendation set at 1.90. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Stephens have made an estimate for KAR Auction Services Inc. shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on October 01, 2020. The new note on the price target was released on August 13, 2020, representing the official price target for KAR Auction Services Inc. stock. Previously, the target price had yet another raise to $19, while JP Morgan analysts kept a Overweight rating on KAR stock.

The Average True Range (ATR) for KAR Auction Services Inc. is set at 0.69, with the Price to Sales ratio for KAR stock in the period of the last 12 months amounting to 0.74. The Price to Book ratio for the last quarter was 1.18, with the Price to Cash per share for the same quarter was set at 7.64. Price to Free Cash Flow for KAR in the course of the last twelve months was 6.21 with Quick ratio for the last quarter at 1.60.

Trading performance analysis for KAR stock

KAR Auction Services Inc. [KAR] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -4.70. With this latest performance, KAR shares dropped by -1.39% in over the last four-week period, additionally plugging by 1.00% over the last 6 months – not to mention a drop of -43.76% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for KAR stock in for the last two-week period is set at 38.17, with the RSI for the last a single of trading hit 36.50, and the three-weeks RSI is set at 41.55 for KAR Auction Services Inc. [KAR]. The present Moving Average for the last 50 days of trading for this stock 15.99, while it was recorded at 14.38 for the last single week of trading, and 15.92 for the last 200 days.

KAR Auction Services Inc. [KAR]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and KAR Auction Services Inc. [KAR] shares currently have an operating margin of +11.29 and a Gross Margin at +35.09. KAR Auction Services Inc.’s Net Margin is presently recorded at +3.32.

Return on Total Capital for KAR is now 5.68, given the latest momentum, and Return on Invested Capital for the company is 2.30. Return on Equity for this stock inclined to 5.93, with Return on Assets sitting at 1.33. When it comes to the capital structure of this company, KAR Auction Services Inc. [KAR] has a Total Debt to Total Equity ratio set at 228.54. Additionally, KAR Total Debt to Total Capital is recorded at 69.56, with Total Debt to Total Assets ending up at 57.31. Long-Term Debt to Equity for the company is recorded at 135.28, with the Long-Term Debt to Total Capital now at 41.18.

Reflecting on the efficiency of the workforce at the company, KAR Auction Services Inc. [KAR] managed to generate an average of $6,039 per employee. Receivables Turnover for the company is 1.05 with a Total Asset Turnover recorded at a value of 0.40.KAR Auction Services Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.60 and a Current Ratio set at 1.60.

KAR Auction Services Inc. [KAR]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, KAR Auction Services Inc. posted 0.35/share EPS, while the average EPS was predicted by analysts to be reported at 0.4/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -12.50%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for KAR. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for KAR Auction Services Inc. go to 12.20%.

An analysis of insider ownership at KAR Auction Services Inc. [KAR]

There are presently around $1,959 million, in the hands of institutional investors. The top three institutional holders of KAR stocks are: WELLINGTON MANAGEMENT GROUP LLP with ownership of 16,753,413, which is approximately 50.425% of the company’s market cap and around 0.10% of the total institutional ownership; BLACKROCK INC., holding 14,419,667 shares of the stock with an approximate value of $204.76 million in KAR stocks shares; and VANGUARD GROUP INC, currently with $177.53 million in KAR stock with ownership of nearly -20.091% of the company’s market capitalization.

Positions in KAR Auction Services Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 159 institutional holders increased their position in KAR Auction Services Inc. [NYSE:KAR] by around 30,248,769 shares. Additionally, 172 investors decreased positions by around 26,809,671 shares, while 34 investors held positions by with 80,897,655 shares. The mentioned changes placed institutional holdings at 137,956,095 shares, according to the latest SEC report filing. KAR stock had 62 new institutional investments in for a total of 6,952,097 shares, while 70 institutional investors sold positions of 6,752,376 shares during the same period.

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