Kar Auction Stock Target Price and Analyst Consensus

KAR
 Stock
  

USD 12.46  0.51  4.27%   

The current analyst and expert consensus on Kar Auction is Hold, with 1 strong sell and 3 strong buy opinions. The current projected Kar Auction target price consensus is 18.67 with 9 analyst opinions. The most common way Kar Auction Services analysts use to provide recommendation to the public is financial statements analysis. Many experts also interview Kar Auction executives and customers to further validate their buy or sell advice. Note, the total number of analysts currently providing their opinion is not significant to determine adequate consensus on Kar Auction. We strongly encourage you to use your own analysis of Kar Auction Services to validate this buy or sell advice. Kar Auction buy-or-sell recommendation module provides average expert sentiment on the projected Kar Auction Services target price to derive its highest and lowest estimates based on projected price volatility of 5.172. Please see Macroaxis Advice on Kar Auction to cross-verify analyst projections. Unlike analyst recommendations, Macroaxis provides advice only from the perspective of investor risk tolerance and investment horizon.
  

Kar Auction Target Price Consensus

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Kar Auction target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts performance other than comparing it to the past results via a very sophisticated attribution analysis. Kar Auction target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
Number of Opinions7
Lowered Outlook0
Raized Outlook0
Hold
Most Kar Auction analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to helps potential investors understand Kar Auction stock's fair price compared to its market value. Analysts arrive at stock ratings after researching public financial statements of Kar Auction Services, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice   Exposure   Valuation

Kar Auction Target Price Projection

Kar Auction's current and average target prices are 12.46 and 18.67, respectively. The current price of Kar Auction is the price at which Kar Auction Services is currently trading. On the other hand, Kar Auction's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.

Current Price

Kar Auction Market Quote on 5th of October 2022

Low Price12.12Odds
High Price12.65Odds

12.46

Target Price

Analyst Consensus On Kar Auction Target Price

Low Estimate11.0Odds
High Estimate26.0Odds
Number of Analysts9
Standard Deviation5.172

18.666

Note that most analysts generally publish their price targets in research reports on specific companies, along with recommendations for the company's stock.Although price targets are often quoted in the financial news media, there could be a delay between the publication of the latest analyst outlook on Kar Auction Services and the information provided on this page.

Kar Auction Analyst Ratings

Kar Auction's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Kar Auction stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Kar Auction's financials, market performance, and future outlook by experienced professionals. Kar Auction's historical ratings below, therefore, can serve as a valuable tool for investors.

Analyst Consensus Breakdown

Average Consensus Estimates

About Kar Auction Target Price Projections

Kar Auction's target price is an analyst's projection of its future price. Price targets can be assigned to all types of securities, from complex investment products to stocks such as Kar Auction Services and even bonds. If the target price is unavailable, it is most likely because there were not enough analyst opinions to come up with a consensus estimate. When setting a price target estimate, an analyst is trying to determine what the Stock is worth and where the price will be in a year from now. Generally, the target price of Kar Auction depends on its intrinsic valuation, beta (i.e., risk over market), and overall volatility. Most analysts publish their price targets in research reports on specific companies, along with their buy, hold, or sell recommendations. Stock price targets are often quoted in the financial news media. Macroaxis uses multiple feeds to provide overall target price projection for Kar Auction Services including analysis of its current option contracts.
Kar Auction's latest option contracts expiring on 2022-10-21 are carrying combined implied volatility of 94.18 with a put-to-call open interest ratio of 0.39 over 24 outstanding agreements suggesting investors are buying way more calls than puts on contracts expiring on 2022-10-21. The current put volume is at 106, with calls trading at the volume of 48. This yields a 2.21 put-to-call volume ratio. The Kar Auction option chain provides detailed quote and price information for the current Kar Auction Services option contracts. It shows all of Kar Auction's listed puts, calls, expiration dates, strike prices, and other pricing information.

Open Interest Against 2022-10-21 Option Contracts

Kar Auction option prices can potentially be used to forecast stock returns because most option chains provide information not only about the current prices but also about the future conditions in Kar Auction's lending market. For example, when Kar Auction's puts are not actively trading or completely missing in the marketplace, investors can use it to internalize expected shorting costs. So if an investor is writing a put option on Kar Auction, he or she must hedge the risk by shorting Kar Auction stock over its option's life.
The chart above shows Kar Auction's distribution of open interest by maturity on contracts that have not yet been settled. The area between the two highest points is the projection of the price at expiration. Kar Auction's open interest chart also provides vital information regarding the liquidity of an option. If there is no open interest for Kar Auction's option, there is no secondary market available for investors to trade.

Kar Auction Maximum Pain Price across 2022-10-21 Option Contracts

Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of particular securities such as Kar Auction close to expiration to expire worthless. According to most research, approximately 10% to 15% of all stock options are exercised, while about 35% expire worthlessly, with roughly 50% traded out before the expiration date. So, Max pain occurs when market makers reach a net positive position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthless.
Kar Auction's stock options are financial instruments that give investors the right to buy or sell shares of Kar Auction Services common stock at a specified price for a given time period. Generally speaking, an option to purchase or sell Kar Auction stock makes it part of the underlying stock when the option's price is tied to the movement of the underlying stock. If Kar Auction's stock price goes up or down, the stock options follow.
Please see Macroaxis Advice on Kar Auction to cross-verify analyst projections. Unlike analyst recommendations, Macroaxis provides advice only from the perspective of investor risk tolerance and investment horizon.

Kar Auction Services In The Money Call Balance

When Kar Auction's strike price is surpassing the current stock price, the option contract against Kar Auction Services stock is said to be in the money. When it comes to buying Kar Auction's options that are 'In the Money' or 'Out of the Money', the choice depends on your outlook for the underlying security, financial situation, and what you are trying to achieve.
While 'out-of-the-money' option contracts written on Kar Auction Services are typically viewed as the more aggressive, there are potential upsides to purchasing these types of options contracts. For one, the cost to buy an 'Out of the Money' option is lower than the cost to buy an 'In the Money' option. This cost-benefit is due to the fact that at the time of the purchase, 'Out of the Money' contracts have no intrinsic value. So, while the potential for a 100% loss is more significant, the cost and risk to enter the trade are lower.

Kar Auction Current Options Market Mood

Kar Auction's open interest and total value indicators provide investors with the necessary information to digest the overall options buildup for its expiring contracts. In addition, it helps Kar Auction Stock's traders understand whether a recent fall or rise in the market is unreasonable and if the time has come to take contrarian positions. These ratios are calculated based on options trading volumes and current open interest.

Put-to-Call Open Interest

Put-to-Call Volume

Most options investors, including buyers and sellers of Kar Auction's calls and puts, are not very successful. It is estimated that an average options trader loses somewhere between 80% to 90% of the time. Kar Auction's option open interest and volume spread between outstanding puts and calls are regarded by many investors as reliable indicators of the overall future market direction. Using current Kar Auction's option volume and open interest to make an investment decision is considered a contrarian-sentiment measure that can be utilized in many timing strategies in both derivative and spot marketplace.

Additional Kar Auction Value Projection Modules

Most investment researchers agree that the mispricing and readjustment of any Stock value happens often and is sometimes even predictable, but there is no strong theory explaining why it happens. The current price of Kar Auction is a key component of Kar Auction valuation and have some predictive power on the future returns of a Kar Auction.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Kar Auction's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Kar Auction in the context of predictive analytics.
Hype
Prediction
LowEstimated ValueHigh
9.6012.3715.14
Details
Intrinsic
Valuation
LowReal ValueHigh
11.2116.0218.79
Details
Naive
Forecast
LowNext ValueHigh
8.9611.7314.50
Details
Bollinger
Band Projection (param)
LowerMiddle BandUpper
11.5815.2218.85
Details
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Kar Auction. Your research has to be compared to or analyzed against Kar Auction's peers to derive any actionable benefits. When done correctly, Kar Auction's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Kar Auction Services.

Additional Kar Auction Value Projection Modules

Most investment researchers agree that the mispricing and readjustment of any Stock value happens often and is sometimes even predictable, but there is no strong theory explaining why it happens. The current price of Kar Auction is a key component of Kar Auction valuation and have some predictive power on the future returns of a Kar Auction.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Kar Auction's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Kar Auction in the context of predictive analytics.
Hype
Prediction
LowEstimated ValueHigh
9.6012.3715.14
Details
Intrinsic
Valuation
LowReal ValueHigh
11.2116.0218.79
Details
Naive
Forecast
LowNext ValueHigh
8.9611.7314.50
Details
Bollinger
Band Projection (param)
LowerMiddle BandUpper
11.5815.2218.85
Details
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Kar Auction. Your research has to be compared to or analyzed against Kar Auction's peers to derive any actionable benefits. When done correctly, Kar Auction's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Kar Auction Services.

Trending Themes

If you are a self-driven investor, you will appreciate our idea-generating investing themes. Our themes help you align your investments inspirations with your core values and are essential building blocks of your portfolios. A typical investing theme is an unweighted collection of up to 20 funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of equities with common characteristics such as industry and growth potential, volatility, or market segment.
Investing
Invested over 90 shares
Macroaxis Index
Invested over 90 shares
Please see Macroaxis Advice on Kar Auction to cross-verify analyst projections. Unlike analyst recommendations, Macroaxis provides advice only from the perspective of investor risk tolerance and investment horizon. Note that the Kar Auction Services information on this page should be used as a complementary analysis to other Kar Auction's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.

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When running Kar Auction Services price analysis, check to measure Kar Auction's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Kar Auction is operating at the current time. Most of Kar Auction's value examination focuses on studying past and present price action to predict the probability of Kar Auction's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Kar Auction's price. Additionally, you may evaluate how the addition of Kar Auction to your portfolios can decrease your overall portfolio volatility.
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The data published in Kar Auction's official financial statements usually reflect Kar Auction's business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of Kar Auction Services. For example, before you start analyzing numbers published by Kar Auction accountants, it's critical to develop an understanding of what Kar Auction's liquidity, profitability, and earnings quality are in the context of the Consumer Cyclical space in which it operates.
Please note, the presentation of Kar Auction's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Kar Auction's management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in Kar Auction's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Kar Auction Services. Please utilize our Beneish M Score to check the likelihood of Kar Auction's management to manipulate its earnings.