According to Zacks, “KAR Auction Services, Inc., through its subsidiaries, operates as a used vehicle and salvage auto auction company in North America. The company operates in three segments: ADESA, IAAI, and AFC. The ADESA segment provides whole car auctions and related services to commercial fleet operators, financial institutions, rental car companies, used vehicle dealers, vehicle manufacturers and their captive finance companies, and franchised and independent used vehicle dealers. This segment also provides value-added ancillary services, such as inspections, storage, transportation, reconditioning and titling, and other administrative services. The IAAI segment offers salvage vehicle auctions and related services. The AFC segment offers short-term and inventory-secured financing, known as floorplan financing, to independent used vehicle dealers. KAR Auction Services, Inc. is headquartered in Carmel, Indiana. “
A number of other analysts also recently issued reports on the company. Macquarie reaffirmed an outperform rating on shares of KAR Auction Services in a report on Monday, August 29th. Susquehanna assumed coverage on KAR Auction Services in a report on Friday, August 26th. They set a positive rating and a $50.00 price target for the company. Jefferies Group lifted their price target on KAR Auction Services from $47.00 to $50.00 and gave the stock a buy rating in a report on Thursday, August 4th. JPMorgan Chase & Co. reaffirmed a buy rating on shares of KAR Auction Services in a report on Wednesday, August 3rd. Finally, Northcoast Research downgraded KAR Auction Services from a buy rating to a neutral rating in a report on Thursday, July 14th. One research analyst has rated the stock with a sell rating, two have given a hold rating and five have given a buy rating to the company. The company currently has a consensus rating of Buy and a consensus price target of $43.71.
KAR Auction Services (NYSE:KAR) traded down 1.21% during midday trading on Wednesday, hitting $43.35. The company’s stock had a trading volume of 532,754 shares. The company’s 50-day moving average is $42.45 and its 200 day moving average is $40.70. The company has a market cap of $5.98 billion, a price-to-earnings ratio of 27.13 and a beta of 1.37. KAR Auction Services has a one year low of $31.54 and a one year high of $44.10.
KAR Auction Services (NYSE:KAR) last announced its quarterly earnings results on Tuesday, August 2nd. The company reported $0.55 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.56 by $0.01. The business had revenue of $771.80 million for the quarter, compared to analysts’ expectations of $757.67 million. KAR Auction Services had a return on equity of 19.03% and a net margin of 7.79%. The firm’s quarterly revenue was up 17.2% on a year-over-year basis. During the same period last year, the firm earned $0.51 earnings per share. On average, analysts predict that KAR Auction Services will post $2.13 EPS for the current year.
The business also recently disclosed a quarterly dividend, which was paid on Tuesday, October 4th. Shareholders of record on Wednesday, September 21st were paid a dividend of $0.29 per share. This represents a $1.16 annualized dividend and a yield of 2.64%. The ex-dividend date of this dividend was Monday, September 19th. KAR Auction Services’s dividend payout ratio is presently 72.50%.
In related news, Director Mark E. Hill acquired 12,000 shares of KAR Auction Services stock in a transaction on Friday, September 9th. The stock was purchased at an average cost of $41.78 per share, with a total value of $501,360.00. Following the purchase, the director now directly owns 25,500 shares in the company, valued at $1,065,390. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, COO Donald S. Gottwald sold 18,125 shares of the company’s stock in a transaction that occurred on Wednesday, August 10th. The shares were sold at an average price of $40.38, for a total value of $731,887.50. Following the sale, the chief operating officer now directly owns 1,039 shares of the company’s stock, valued at $41,954.82. The disclosure for this sale can be found here. Company insiders own 1.30% of the company’s stock.
A number of hedge funds have recently bought and sold shares of KAR. Bank of Montreal Can bought a new stake in KAR Auction Services during the second quarter valued at approximately $137,000. BlackRock Japan Co. Ltd increased its stake in KAR Auction Services by 85.7% in the second quarter. BlackRock Japan Co. Ltd now owns 3,636 shares of the company’s stock valued at $152,000 after buying an additional 1,678 shares in the last quarter. Pacer Advisors Inc. increased its stake in KAR Auction Services by 508.5% in the second quarter. Pacer Advisors Inc. now owns 4,150 shares of the company’s stock valued at $174,000 after buying an additional 3,468 shares in the last quarter. Prudential Financial Inc. bought a new stake in KAR Auction Services during the second quarter valued at approximately $205,000. Finally, Parametrica Management Ltd bought a new stake in KAR Auction Services during the second quarter valued at approximately $206,000.
KAR Auction Services Company Profile
KAR Auction Services, Inc is a provider of whole car auction services in North America, and salvage auction services in North America and the United Kingdom. The Company operates through three segments: ADESA, Inc (ADESA Auctions), Insurance Auto Auctions, Inc (IAA) and Automotive Finance Corporation (AFC).
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