KAR Auction Services Inc. (KAR) Stock Rating Lowered by Zacks Investment Research
KAR Auction Services Inc. (NYSE:KAR) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Wednesday.
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. “
Other equities analysts have also recently issued research reports about the stock. Jefferies Group raised 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. reissued a “buy” rating on shares of KAR Auction Services in a research note on Wednesday, August 3rd. Northcoast Research cut shares of KAR Auction Services from a “buy” rating to a “neutral” rating in a research note on Thursday, July 14th. Macquarie reissued an “outperform” rating on shares of KAR Auction Services in a research note on Monday, August 29th. Finally, Susquehanna initiated coverage on shares of KAR Auction Services in a research note on Friday, August 26th. They set a “positive” rating and a $50.00 target price on the stock. One analyst has rated the stock with a sell rating, two have assigned a hold rating and five have issued a buy rating to the company’s stock. The company currently has a consensus rating of “Buy” and a consensus target price of $43.71.
Shares of KAR Auction Services (NYSE:KAR) traded down 0.78% during trading on Wednesday, hitting $43.40. 215,822 shares of the company traded hands. The firm has a 50 day moving average price of $42.52 and a 200-day moving average price of $40.72. The stock has a market cap of $5.99 billion, a price-to-earnings ratio of 27.16 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 released its earnings results on Tuesday, August 2nd. The company reported $0.55 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.56 by $0.01. The company had revenue of $771.80 million for the quarter, compared to analyst estimates of $757.67 million. KAR Auction Services had a net margin of 7.79% and a return on equity of 19.03%. The firm’s quarterly revenue was up 17.2% on a year-over-year basis. During the same period in the previous year, the business posted $0.51 EPS. Analysts predict that KAR Auction Services will post $2.13 EPS for the current year.
The company also recently disclosed a quarterly dividend, which was paid on Tuesday, October 4th. Shareholders of record on Wednesday, September 21st were given a dividend of $0.29 per share. This represents a $1.16 annualized dividend and a yield of 2.65%. The ex-dividend date of this dividend was Monday, September 19th. KAR Auction Services’s payout ratio is 72.50%.
In related news, EVP Benjamin Skuy sold 10,000 shares of the firm’s stock in a transaction on Friday, September 2nd. The stock was sold at an average price of $42.74, for a total value of $427,400.00. Following the transaction, the executive vice president now owns 87,420 shares in the company, valued at $3,736,330.80. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, COO Donald S. Gottwald sold 18,125 shares of the firm’s stock in a transaction on Wednesday, August 10th. The stock was sold at an average price of $40.38, for a total value of $731,887.50. Following the completion of the transaction, the chief operating officer now owns 1,039 shares in the company, valued at approximately $41,954.82. The disclosure for this sale can be found here. Company insiders own 1.30% of the company’s stock.
Hedge funds and other institutional investors have recently modified their holdings of the company. Geode Capital Management LLC boosted its position 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 in the last quarter. Artemis Investment Management LLP boosted its position 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 in the last quarter. BNP Paribas Arbitrage SA acquired a new position in KAR Auction Services during the second quarter worth about $4,631,000. GW&K Investment Management LLC boosted its position 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 in the last quarter. Finally, Aperio Group LLC boosted its position 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 in 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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