How KAR Auction Services Inc. (KAR) Works From A Technical Perspective

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KAR Auction Services Inc. (NYSE:KAR) finished Friday with an addition of $0.07 to close at $13.05, an upside of 0.54 percent. An average of 620,340 shares of common stock have been traded in the last five days. There was a gain of $0.53 in the past week, and it reached a new high 5 times over the past 12 months. The last 20 days have seen an average of 848,530 shares traded, while the 50-day average volume stands at 863,434.

KAR stock has decreased by -5.02% in the last month. The company shares reached their 1-month lowest point of $12.09 on 12/22/22. With the stock rallying to its 52-week high on 02/25/22, shares of the company touched a low of $11.15 and a high of $22.10 in 52 weeks. It has reached a new high 4 times so far this year and lost -16.45% or -$2.57 in price. In spite of this, the price is down -40.95% from the 52-week high.


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Valuation Metrics

KAR Auction Services Inc. (KAR) stock’s beta is 1.49. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.82, the price-to-book (PB) ratio at 0.97.

Financial Health

The quick ratio of KAR Auction Services Inc. for the three months ended June 29 was 1.10, and the current ratio was 1.10, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.13 and a total debt to equity ratio of 0.31 for the quarter ending June 29. Its gross profit as reported stood at $951.7 million compared to revenue of $2.25 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, KAR Auction Services Inc.’s return on assets was 2.60%.

Earnings Surprise

For the three-month period that ended June 29, KAR Auction Services Inc. had $194.7 million in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of -$5.8 million in the quarter, while revenues were grew 82.76%. The analyst consensus anticipated KAR Auction Services Inc.’s latest quarter earnings to come in at $0.09 per share, but it turned out to be $0.04, a -55.60% surprise. For the quarter, EBITDA amounted to $76.8 million. Shareholders own equity worth $108.91 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at KAR Auction Services Inc. (KAR) price momentum. RSI 9-day as of the close on 30 December was 49.32%, suggesting the stock is Neutral, with historical volatility in this time frame at 40.57%.

As of today, KAR’s price is $12.85 +4.23% or $0.53 from its 5-day moving average. KAR is currently trading -6.59% lower than its 20-day SMA and -21.24% lower than its 100-day SMA. However, the stock’s current price level is -4.33% below the SMA50 and -30.33% below the SMA200.

The stochastic %K and %D were 39.63% and 36.17%, respectively, and the average true range (ATR) was 0.46. With the 14-day stochastic at 48.98% and the average true range at 0.48, the RSI (14) stands at 47.40%. The stock has reached 0.07 on the 9-day MACD Oscillator while the 14-day reading was at -0.16.

Analyst Ratings

CJS Securities upgraded KAR Auction Services Inc. (NYSE: KAR) to a a Market outperform rating in its most recent analyst report. Previously, the stock was rated as a Market perform. The consensus rating for KAR Auction Services Inc. (KAR) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell KAR, while 4 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 4 others rate it as a “buy”.

What is KAR’s price target for the next 12 months?

Analysts predict a range of price targets between $12.00 and $25.00, with a median target of $20.00. Taking a look at these predictions, the average price target given by analysts for KAR Auction Services Inc. (KAR) stock is $19.29.

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