KAR Auction Services Inc. (KAR) Sees Large Volume Increase
KAR Auction Services Inc. (NYSE:KAR) saw unusually-high trading volume on Tuesday . Approximately 1,228,208 shares traded hands during mid-day trading, an increase of 30% from the previous session’s volume of 941,588 shares.The stock last traded at $43.47 and had previously closed at $43.23.
KAR has been the topic of several recent research reports. Sterne Agee CRT upped their price target on shares of KAR Auction Services to $45.00 in a report on Friday, May 6th. Jefferies Group reaffirmed a “buy” rating and issued a $47.00 price target (up previously from $45.00) on shares of KAR Auction Services in a report on Thursday, May 5th. JPMorgan Chase & Co. reaffirmed a “buy” rating on shares of KAR Auction Services in a report on Wednesday, May 4th. Zacks Investment Research raised shares of KAR Auction Services from a “hold” rating to a “buy” rating and set a $46.00 price target on the stock in a report on Wednesday, July 6th. Finally, Northcoast Research downgraded shares of KAR Auction Services from a “buy” rating to a “neutral” rating in a report on Thursday, July 14th. Two equities research analysts have rated the stock with a hold rating and four have given a buy rating to the stock. The company presently has an average rating of “Buy” and a consensus price target of $42.17.
The stock has a market cap of $5.96 billion and a price-to-earnings ratio of 27.64. The stock’s 50-day moving average is $41.32 and its 200 day moving average is $38.01.
KAR Auction Services (NYSE:KAR) last released its quarterly earnings results on Tuesday, May 3rd. The company reported $0.55 earnings per share for the quarter, topping analysts’ consensus estimates of $0.50 by $0.05. The firm had revenue of $745 million for the quarter, compared to analyst estimates of $695.79 million. The company’s revenue was up 17.8% compared to the same quarter last year. During the same period last year, the company earned $0.47 EPS. On average, analysts forecast that KAR Auction Services Inc. will post $2.15 EPS for the current fiscal year.
The business also recently disclosed a quarterly dividend, which was paid on Tuesday, July 5th. Stockholders of record on Wednesday, June 22nd were issued a $0.29 dividend. This represents a $1.16 annualized dividend and a dividend yield of 2.68%. The ex-dividend date was Monday, June 20th.
In other news, CEO Hilaire Stephane St. sold 59,355 shares of the stock in a transaction that occurred on Tuesday, May 10th. The stock was sold at an average price of $39.52, for a total value of $2,345,709.60. Following the completion of the sale, the chief executive officer now owns 5,000 shares of the company’s stock, valued at approximately $197,600. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Thomas J. Caruso sold 20,000 shares of the stock in a transaction that occurred on Tuesday, May 10th. The shares were sold at an average price of $39.64, for a total value of $792,800.00. Following the completion of the sale, the insider now directly owns 20,000 shares of the company’s stock, valued at approximately $792,800. The disclosure for this sale can be found here.
Several large investors recently added to or reduced their stakes in KAR. MUFG Americas increased its stake in KAR Auction Services by 5.3% in the third quarter. MUFG Americas now owns 55,743 shares of the company’s stock valued at $1,994,000 after buying an additional 2,810 shares during the last quarter. Sei Investments Co. increased its stake in KAR Auction Services by 89.3% in the fourth quarter. Sei Investments Co. now owns 88,428 shares of the company’s stock valued at $3,274,000 after buying an additional 41,712 shares during the last quarter. Rhumbline Advisers increased its stake in KAR Auction Services by 0.9% in the fourth quarter. Rhumbline Advisers now owns 114,971 shares of the company’s stock valued at $4,257,000 after buying an additional 995 shares during the last quarter. TD Asset Management Inc. bought a new stake in KAR Auction Services during the fourth quarter valued at approximately $1,926,000. Finally, Vanguard Group Inc. increased its stake in KAR Auction Services by 0.5% in the fourth quarter. Vanguard Group Inc. now owns 9,307,797 shares of the company’s stock valued at $344,667,000 after buying an additional 46,861 shares during the last quarter.
KAR Auction Services, Inc is a provider of vehicle auction services in North America. We operate as three reportable business segments: ADESA, Inc (ADESA Auctions), Insurance Auto Auctions, Inc (IAA) and Automotive Finance Corporation (AFC). ADESA Auctions is a provider of whole car auctions and related services to the vehicle remarketing industry in North America.
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