KAR Auction Services Stock Price and Value Analysis

Should you buy KAR Auction Services stock? (NYSE:KAR). Let's see how it does in our automated value investing analysis system.

  • This company has wild ups and downs.
  • This company is making money at a modest rate.
  • This company is less known than others.
  • This stock looks overpriced.
  • This company pays no dividend.

Inside the KAR Numbers

KAR Price
(KAR Auction Services stock price per share)
[?] KAR Fair Price
(based on intrinsic value)
[?] KAR Safety Price (based on a variable margin of safety) $7.66
[?] PE Ratio versus Sector 1662% higher than other Consumer Goods stocks
[?] PE Ratio versus Industry 0% lower than other Specialty Retail stocks
[?] Free Cash Flow Jitter 69%

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 8,951,846 shares shorted. With 113,797,555 shares available for purchase and an average trading volume over the past 10 trading days of 694,800, it would take at least 12.884 days for all of the short holders to cover their shorts.

What does this mean to you? At this volume, it'll take more than two trading weeks for shorts to cover. This may indicate a short squeeze play would work! If this stock has good fundamentals and it'll take a while for the short holders to cover, buying now could net you bigger short-term technical gains if and as the price rises.

Is KAR Auction Services Stock on Sale?

We believe that KAR Auction Services may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

KAR Auction Services looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy KAR Stock?

Does KAR Auction Services have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.