Openlane: A Rather Promising Diversion

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One gathers that Kimelman & Baird – a firm not entirely unfamiliar with the vagaries of the market, I assure you – has taken a position in Openlane (OPLN 0.49%). A rather substantial one, involving some $24.12 million worth of shares. One hopes they’ve done their homework. Though, frankly, one suspects a bit of speculation is always involved. It does, after all, liven things up.

A Modest Investment, Don’t You Think?

The aforementioned Kimelman & Baird acquired 809,840 shares during the last quarter. A perfectly respectable sum, though hardly enough to send shockwaves through the financial district. The transaction, valued at approximately $24.12 million, seems to indicate a degree of confidence in Openlane’s prospects. Or, at the very least, a willingness to take a calculated risk. One rarely sees pure altruism in these matters.

Further Observations, If You Have the Patience

  • This represents a new venture for Kimelman & Baird, comprising 1.8529% of their U.S. equity holdings as of December 31st. A small percentage, perhaps, but every little bit counts, doesn’t it?
  • Their top holdings, for those keeping score, are as follows: AAPL ($77.28 million), JPM ($74.62 million), AMZN ($63.57 million), MSFT ($58.56 million), and GOOGL ($56.68 million). A predictable lot, really.
  • As of February 5th, Openlane shares were trading at $28.86, a rather impressive 40.44% increase over the past year. Outperforming the S&P 500 by 28.28 percentage points. One almost feels sorry for those who didn’t participate. Almost.

A Brief Company Overview, For Those Inclined

Metric Value
Market capitalization $3.07 billion
Revenue (TTM) $1.93 billion
Net income (TTM) $170.50 million
Price (as of market close February 5, 2026) $28.86

The Business, In a Nutshell

  • Openlane, it appears, provides a digital marketplace for used vehicles. How terribly modern. They also handle the tiresome details – transportation, reconditioning, inspections, and all that.
  • Revenue is generated through transaction fees, value-added services, and financing solutions for dealers. A perfectly sensible arrangement, really.
  • They serve a broad clientele – fleet operators, financial institutions, rental companies, dealers, and manufacturers across the U.S., Canada, Europe, and the U.K. One assumes they have a rather efficient logistics department.

In essence, Openlane facilitates the buying and selling of used cars online. A rather simple concept, brilliantly executed, if one is to believe the reports. Their technology and services streamline the process and cater to dealer inventory needs. A commendable effort, certainly.

What Does This Mean For The Discerning Investor?

Openlane, it seems, is a significant player in the online used car market. They’ve demonstrated solid momentum, with a 9% increase in revenue and a 14% rise in earnings during the last quarter. Not bad, not bad at all.

Gross merchandise volume increased by 8% to $7.1 billion, and dealer volume grew by 9%. One gathers that more and more dealers are participating on their platform. A clear indication of growing acceptance, wouldn’t you say?

Looking ahead to 2026, Openlane anticipates earnings of $0.95 to $1.09 per share. A marked improvement over the $0.96 per share loss in 2025. A rather encouraging sign, wouldn’t you agree?

The stock price is currently down 11% year-to-date, but has returned 26% over the past year. A three-year average annualized return of 21.4%, and a five-year annualized return of 12.1%. One can hardly complain.

Currently trading at 39 times earnings and 22 times forward earnings, the stock is, admittedly, a bit pricey. However, Wall Street seems optimistic, rating it a consensus buy with a $34 per share price target. That would represent a 28% increase. One hopes they’re right. One really does.

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2026-02-24 23:12