KAR Auction Services Inc. (KAR) Upgraded by Zacks Investment Research to Hold
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 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. “
Other research analysts have also recently issued reports about the company. Jefferies Group upped their price objective on KAR Auction Services from $47.00 to $50.00 and gave the stock a “buy” rating in a research report on Thursday, August 4th. JPMorgan Chase & Co. reissued a “buy” rating on shares of KAR Auction Services in a report on Wednesday, August 3rd. Northcoast Research downgraded KAR Auction Services from a “buy” rating to a “neutral” rating in a report on Thursday, July 14th. Macquarie reissued an “outperform” rating on shares of KAR Auction Services in a report on Monday, August 29th. Finally, Susquehanna started coverage on KAR Auction Services in a report on Friday, August 26th. They issued a “positive” rating and a $50.00 target price for the company. Three analysts have rated the stock with a hold rating and five have assigned a buy rating to the company. The company has an average rating of “Buy” and a consensus price target of $43.71.
Shares of KAR Auction Services (NYSE:KAR) opened at 43.40 on Tuesday. The firm has a 50-day moving average price of $42.62 and a 200 day moving average price of $40.87. KAR Auction Services has a one year low of $31.54 and a one year high of $44.10. The firm has a market capitalization of $5.99 billion, a price-to-earnings ratio of 27.16 and a beta of 1.37.
KAR Auction Services (NYSE:KAR) last released its quarterly earnings data on Tuesday, August 2nd. The company reported $0.55 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.56 by $0.01. The business had revenue of $771.80 million for the quarter, compared to analyst estimates of $757.67 million. KAR Auction Services had a return on equity of 19.03% and a net margin of 7.79%. The company’s revenue was up 17.2% compared to the same quarter last year. During the same period in the prior year, the company posted $0.51 earnings per share. Equities analysts forecast that KAR Auction Services will post $2.13 earnings per share for the current fiscal 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 2.67%. The ex-dividend date was Monday, September 19th. KAR Auction Services’s dividend payout ratio is presently 72.50%.
In other KAR Auction Services news, COO Donald S. Gottwald sold 18,125 shares of the business’s stock in a transaction that occurred on Wednesday, August 10th. The stock was sold at an average price of $40.38, for a total transaction of $731,887.50. Following the transaction, the chief operating officer now owns 1,039 shares in the company, valued at approximately $41,954.82. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Mark E. Hill bought 12,000 shares of the company’s stock in a transaction on Friday, September 9th. The shares were acquired at an average price of $41.78 per share, for a total transaction of $501,360.00. Following the transaction, the director now directly owns 25,500 shares in the company, valued at approximately $1,065,390. The disclosure for this purchase can be found here. Company insiders own 1.30% of the company’s stock.
A number of institutional investors have recently added to or reduced their stakes in KAR. FMR LLC boosted its position in KAR Auction Services by 40.3% in the second quarter. FMR LLC now owns 10,444,899 shares of the company’s stock valued at $435,970,000 after buying an additional 2,998,636 shares during the last quarter. Point72 Asset Management L.P. boosted its position in KAR Auction Services by 127.9% in the second quarter. Point72 Asset Management L.P. now owns 3,266,800 shares of the company’s stock valued at $136,356,000 after buying an additional 1,833,200 shares during the last quarter. KAMES CAPITAL plc acquired a new position in KAR Auction Services during the second quarter valued at about $34,885,000. EverPoint Asset Management LLC boosted its position in KAR Auction Services by 257.5% in the second quarter. EverPoint Asset Management LLC now owns 901,401 shares of the company’s stock valued at $37,624,000 after buying an additional 649,257 shares during the last quarter. Finally, Emerald Acquisition Ltd. acquired a new position in KAR Auction Services during the second quarter valued at about $18,456,000.
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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