KAR Auction Services Inc. (KAR) Upgraded to Hold by Zacks Investment Research
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 research analysts have also recently commented on KAR. Northcoast Research cut KAR Auction Services from a buy rating to a neutral rating in a report on Thursday, July 14th. JPMorgan Chase & Co. reissued a buy rating on shares of KAR Auction Services in a report on Wednesday, August 3rd. Jefferies Group boosted 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. Susquehanna initiated coverage on KAR Auction Services in a report on Friday, August 26th. They issued a positive rating and a $50.00 price target on the stock. Finally, Macquarie reissued an outperform rating on shares of KAR Auction Services in a report on Monday, August 29th. Three research analysts have rated the stock with a hold rating and five have issued a buy rating to the company’s stock. KAR Auction Services has an average rating of Buy and a consensus target price of $43.71.
KAR Auction Services (NYSE:KAR) traded up 0.16% during trading on Tuesday, reaching $43.28. 23,113 shares of the company’s stock were exchanged. The firm has a 50 day moving average of $42.66 and a 200-day moving average of $40.88. KAR Auction Services has a 12 month low of $31.54 and a 12 month high of $44.10. The stock has a market cap of $5.97 billion, a PE ratio of 27.08 and a beta of 1.37.
KAR Auction Services (NYSE:KAR) last posted its quarterly earnings results on Tuesday, August 2nd. The company reported $0.55 EPS for the quarter, missing the Zacks’ consensus estimate of $0.56 by $0.01. KAR Auction Services had a return on equity of 19.03% and a net margin of 7.79%. The business earned $771.80 million during the quarter, compared to analysts’ expectations of $757.67 million. During the same period in the prior year, the firm posted $0.51 earnings per share. The firm’s revenue for the quarter was up 17.2% on a year-over-year basis. On average, equities research analysts anticipate that KAR Auction Services will post $2.13 earnings per share for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, October 4th. Shareholders of record on Wednesday, September 21st were given a $0.29 dividend. This represents a $1.16 annualized dividend and a yield of 2.68%. The ex-dividend date was Monday, September 19th. KAR Auction Services’s dividend payout ratio (DPR) is presently 72.50%.
In other news, Director Mark E. Hill bought 12,000 shares of the stock in a transaction on Friday, September 9th. The stock was acquired at an average cost of $41.78 per share, for a total transaction of $501,360.00. Following the acquisition, the director now owns 25,500 shares of the company’s stock, valued at $1,065,390. The acquisition was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, COO Donald S. Gottwald sold 18,125 shares of the company’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 sale, the chief operating officer now owns 1,039 shares of the company’s stock, valued at $41,954.82. The disclosure for this sale can be found here. 1.30% of the stock is owned by company insiders.
Several large investors have recently modified their holdings of KAR. Renaissance Technologies LLC boosted its stake in shares of KAR Auction Services by 592.6% in the first quarter. Renaissance Technologies LLC now owns 487,600 shares of the company’s stock valued at $18,597,000 after buying an additional 417,200 shares in the last quarter. HBK Investments L P boosted its stake in shares of KAR Auction Services by 152.7% in the first quarter. HBK Investments L P now owns 19,711 shares of the company’s stock valued at $752,000 after buying an additional 11,911 shares in the last quarter. Geode Capital Management LLC boosted its stake in shares of KAR Auction Services by 5.4% in the first quarter. Geode Capital Management LLC now owns 947,388 shares of the company’s stock valued at $36,133,000 after buying an additional 48,546 shares in the last quarter. Lazard Asset Management LLC purchased a new stake in shares of KAR Auction Services during the first quarter valued at $823,000. Finally, Meeder Asset Management Inc. boosted its stake in shares of KAR Auction Services by 3.7% in the first quarter. Meeder Asset Management Inc. now owns 12,810 shares of the company’s stock valued at $488,000 after buying an additional 452 shares in the last quarter.
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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