KAR Auction Services (KAR) Reaches New Lifetime High Today

Trade-Ideas LLC identified KAR Auction Services ( KAR) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified KAR Auction Services as such a stock due to the following factors:

  • KAR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $42.0 million.
  • KAR has traded 7,816 shares today.
  • KAR is trading at a new lifetime high.

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More details on KAR:

KAR Auction Services, Inc., together with its subsidiaries, provides vehicle auction services in the United States, Canada, Mexico, and the United Kingdom. It operates in three segments: ADESA Auctions, IAA, and AFC. The stock currently has a dividend yield of 2.9%. KAR has a PE ratio of 26. Currently there are 8 analysts that rate KAR Auction Services a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for KAR Auction Services has been 1.1 million shares per day over the past 30 days. KAR Auction Services has a market cap of $5.5 billion and is part of the services sector and specialty retail industry. The stock has a beta of 1.23 and a short float of 1.2% with 2.31 days to cover. Shares are up 9.9% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates KAR Auction Services as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 7.7%. Since the same quarter one year prior, revenues rose by 17.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • KAR AUCTION SERVICES INC has improved earnings per share by 15.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, KAR AUCTION SERVICES INC increased its bottom line by earning $1.51 versus $1.19 in the prior year. This year, the market expects an improvement in earnings ($2.14 versus $1.51).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Commercial Services & Supplies industry and the overall market on the basis of return on equity, KAR AUCTION SERVICES INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • 43.80% is the gross profit margin for KAR AUCTION SERVICES INC which we consider to be strong. Regardless of KAR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, KAR's net profit margin of 8.14% compares favorably to the industry average.

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