why KAR Auction Services Inc. [KAR] is a Good Choice for Investors After New Price Target of $17.30

KAR Auction Services Inc. [NYSE: KAR] stock went on an upward path that rose over 15.99% on Wednesday, amounting to a one-week price increase of more than 9.93%. The company report on May 5, 2021 that Karnov Group AB to Host Earnings Call.

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Karnov Group AB (NYSE:KAR) will be discussing their earnings results in their 2021 First Quarter Earnings call to be held on May 5, 2021 at 10:00 AM Eastern Time.

To listen to the event live or access a replay of the call – visit https://www.investornetwork.com/event/presentation/77991.

Over the last 12 months, KAR stock rose by 19.45%. The one-year KAR Auction Services Inc. stock forecast points to a potential upside of 2.72. The average equity rating for KAR stock is currently 2.60, trading closer to a bullish pattern in the stock market.

The market cap for the stock reached $2.13 billion, with 129.60 million shares outstanding and 123.23 million shares in the current float. Compared to the average trading volume of 2.62M shares, KAR stock reached a trading volume of 8442565 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Guru’s Opinion on 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 $17.30 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 2.60. 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 Equal-Weight, with their previous recommendation back on February 18, 2021. The new note on the price target was released on February 17, 2021, representing the official price target for KAR Auction Services Inc. stock. Previously, the target price had yet another raise to $11, while Guggenheim analysts kept a Sell rating on KAR stock.

The Average True Range (ATR) for KAR Auction Services Inc. is set at 0.67, with the Price to Sales ratio for KAR stock in the period of the last 12 months amounting to 0.97. The Price to Book ratio for the last quarter was 1.35, with the Price to Cash per share for the same quarter was set at 5.95. Price to Free Cash Flow for KAR in the course of the last twelve months was 9.09 with Quick ratio for the last quarter at 1.40.

KAR Stock Performance Analysis:

KAR Auction Services Inc. [KAR] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 9.93. With this latest performance, KAR shares gained by 10.58% in over the last four-week period, additionally plugging by 8.72% over the last 6 months – not to mention a rise of 19.45% 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 63.83, with the RSI for the last a single of trading hit 69.30, and the three-weeks RSI is set at 59.35 for KAR Auction Services Inc. [KAR]. The present Moving Average for the last 50 days of trading for this stock 15.18, while it was recorded at 15.28 for the last single week of trading, and 16.68 for the last 200 days.

Insight into KAR Auction Services Inc. Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and KAR Auction Services Inc. [KAR] shares currently have an operating margin of +6.95 and a Gross Margin at +32.53. KAR Auction Services Inc.’s Net Margin is presently recorded at +0.02.

Return on Total Capital for KAR is now 2.73, given the latest momentum, and Return on Invested Capital for the company is 0.01. Return on Equity for this stock inclined to 0.03, with Return on Assets sitting at 0.01. 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 163.33. Additionally, KAR Total Debt to Total Capital is recorded at 62.03, with Total Debt to Total Assets ending up at 52.03. Long-Term Debt to Equity for the company is recorded at 136.50, with the Long-Term Debt to Total Capital now at 38.67.

Reflecting on the efficiency of the workforce at the company, KAR Auction Services Inc. [KAR] managed to generate an average of $50 per employee. Receivables Turnover for the company is 0.91 with a Total Asset Turnover recorded at a value of 0.33.KAR Auction Services Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.40 and a Current Ratio set at 1.40.


With the latest financial reports released by the company, KAR Auction Services Inc. posted 0.09/share EPS, while the average EPS was predicted by analysts to be reported at 0.16/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -43.80%. 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 14.00%.

KAR Auction Services Inc. [KAR] Insider Position Details

There are presently around $1,994 million, in the hands of institutional investors. The top three institutional holders of KAR stocks are: WELLINGTON MANAGEMENT GROUP LLP with ownership of 17,479,860, which is approximately -1.188% of the company’s market cap and around 1.00% of the total institutional ownership; BLACKROCK INC., holding 14,284,706 shares of the stock with an approximate value of $207.27 million in KAR stocks shares; and VANGUARD GROUP INC, currently with $175.0 million in KAR stock with ownership of nearly 1.873% of the company’s market capitalization.

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Positions in KAR Auction Services Inc. stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 144 institutional holders increased their position in KAR Auction Services Inc. [NYSE:KAR] by around 23,197,205 shares. Additionally, 143 investors decreased positions by around 20,970,490 shares, while 51 investors held positions by with 93,231,135 shares. The mentioned changes placed institutional holdings at 137,398,830 shares, according to the latest SEC report filing. KAR stock had 44 new institutional investments in for a total of 12,275,018 shares, while 53 institutional investors sold positions of 13,406,432 shares during the same period.

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