KAR Auction Services Inc. (NYSE:KAR) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued to investors on Tuesday.
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. “
Several other equities analysts have also recently issued reports on KAR. Jefferies Group boosted their target price on shares of KAR Auction Services from $47.00 to $50.00 and gave the company a “buy” rating in a research note on Thursday, August 4th. JPMorgan Chase & Co. reiterated a “buy” rating on shares of KAR Auction Services in a research note on Wednesday, August 3rd. Susquehanna assumed coverage on shares of KAR Auction Services in a research note on Friday, August 26th. They issued a “positive” rating and a $50.00 target price for the company. Northcoast Research cut shares of KAR Auction Services from a “buy” rating to a “neutral” rating in a research note on Thursday, July 14th. Finally, Macquarie reiterated an “outperform” rating on shares of KAR Auction Services in a research note on Monday, August 29th. Three research analysts have rated the stock with a hold rating and five have assigned a buy rating to the stock. The stock currently has an average rating of “Buy” and an average price target of $43.71.
KAR Auction Services (NYSE:KAR) opened at 43.55 on Tuesday. The stock has a market capitalization of $6.01 billion, a PE ratio of 27.25 and a beta of 1.37. KAR Auction Services has a 1-year low of $31.54 and a 1-year high of $44.10. The company’s 50-day moving average is $42.70 and its 200 day moving average is $40.90.
KAR Auction Services (NYSE:KAR) last announced its quarterly earnings data on Tuesday, August 2nd. The company reported $0.55 EPS for the quarter, missing the consensus estimate of $0.56 by $0.01. KAR Auction Services had a net margin of 7.79% and a return on equity of 19.03%. The business had revenue of $771.80 million for the quarter, compared to analyst estimates of $757.67 million. During the same quarter in the previous year, the firm posted $0.51 earnings per share. The business’s revenue was up 17.2% on a year-over-year basis. Equities analysts predict that KAR Auction Services will post $2.13 earnings per share for the current year.
The firm also recently announced a quarterly dividend, which was paid on Tuesday, October 4th. Stockholders of record on Wednesday, September 21st were issued a dividend of $0.29 per share. This represents a $1.16 dividend on an annualized basis and a dividend yield of 2.66%. The ex-dividend date was Monday, September 19th. KAR Auction Services’s payout ratio is 72.50%.
In other news, EVP Lisa A. Price sold 5,140 shares of the company’s stock in a transaction on Wednesday, October 5th. The shares were sold at an average price of $44.00, for a total transaction of $226,160.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Mark E. Hill bought 12,000 shares of the company’s stock in a transaction dated Friday, September 9th. The shares were acquired at an average cost of $41.78 per share, with a total value of $501,360.00. Following the acquisition, the director now directly owns 25,500 shares of the company’s stock, valued at $1,065,390. The disclosure for this purchase can be found here. Insiders own 1.30% of the company’s stock.
Large investors have recently added to or reduced their stakes in the company. Geode Capital Management LLC raised its stake in KAR Auction Services by 5.4% in the first quarter. Geode Capital Management LLC now owns 947,388 shares of the company’s stock worth $36,133,000 after buying an additional 48,546 shares during the last quarter. Artemis Investment Management LLP raised its stake in KAR Auction Services by 100.0% in the second quarter. Artemis Investment Management LLP now owns 386,200 shares of the company’s stock worth $16,126,000 after buying an additional 193,100 shares during the last quarter. BNP Paribas Arbitrage SA acquired a new stake in KAR Auction Services during the second quarter worth about $4,631,000. GW&K Investment Management LLC raised its stake in KAR Auction Services by 6.6% in the second quarter. GW&K Investment Management LLC now owns 786,896 shares of the company’s stock worth $32,845,000 after buying an additional 48,624 shares during the last quarter. Finally, Aperio Group LLC raised its stake in KAR Auction Services by 33.0% in the first quarter. Aperio Group LLC now owns 11,217 shares of the company’s stock worth $428,000 after buying an additional 2,781 shares during the last quarter.
About KAR Auction Services
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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