KAR Auction Services, Inc (KAR) Upgraded by Zacks Investment Research to Buy
Zacks Investment Research upgraded shares of KAR Auction Services, Inc (NYSE:KAR) from a hold rating to a buy rating in a research note published on Tuesday. The brokerage currently has $54.00 price objective on the specialty retailer’s stock.
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 also recently issued reports about the stock. BidaskClub upgraded shares of KAR Auction Services from a sell rating to a hold rating in a report on Monday, July 31st. Gabelli assumed coverage on shares of KAR Auction Services in a report on Tuesday, July 4th. They set a buy rating and a $62.00 target price on the stock. Jefferies Group LLC restated a buy rating and set a $50.00 target price on shares of KAR Auction Services in a report on Tuesday, September 12th. Finally, Stephens downgraded shares of KAR Auction Services from an overweight rating to an equal weight rating and lowered their target price for the stock from $51.00 to $48.00 in a report on Thursday, September 7th. Two investment analysts have rated the stock with a hold rating and four have given a buy rating to the company. The stock has an average rating of Buy and a consensus price target of $53.50.
Shares of KAR Auction Services (KAR) opened at 47.50 on Tuesday. The company has a market capitalization of $6.52 billion, a P/E ratio of 29.14 and a beta of 1.07. The company’s 50 day moving average is $46.29 and its 200 day moving average is $43.65. KAR Auction Services has a 12-month low of $38.16 and a 12-month high of $48.65.
KAR Auction Services (NYSE:KAR) last issued its earnings results on Tuesday, August 8th. The specialty retailer reported $0.65 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.58 by $0.07. The business had revenue of $858.00 million for the quarter, compared to the consensus estimate of $850.67 million. KAR Auction Services had a net margin of 6.83% and a return on equity of 21.46%. The firm’s revenue for the quarter was up 8.8% on a year-over-year basis. During the same period in the previous year, the company earned $0.55 earnings per share. Analysts expect that KAR Auction Services will post $2.25 earnings per share for the current fiscal year.
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The business also recently disclosed a quarterly dividend, which was paid on Tuesday, October 3rd. Shareholders of record on Wednesday, September 20th were issued a $0.32 dividend. The ex-dividend date of this dividend was Tuesday, September 19th. This represents a $1.28 annualized dividend and a dividend yield of 2.69%. KAR Auction Services’s dividend payout ratio is currently 78.53%.
In other KAR Auction Services news, CEO John W. Kett sold 10,011 shares of the company’s stock in a transaction on Tuesday, August 1st. The shares were sold at an average price of $42.01, for a total value of $420,562.11. Following the transaction, the chief executive officer now directly owns 65,982 shares in the company, valued at $2,771,903.82. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, COO Donald S. Gottwald sold 10,000 shares of the company’s stock in a transaction on Tuesday, August 15th. The shares were sold at an average price of $43.68, for a total transaction of $436,800.00. The disclosure for this sale can be found here. Over the last quarter, insiders sold 20,031 shares of company stock worth $858,249. Corporate insiders own 1.30% of the company’s stock.
Large investors have recently added to or reduced their stakes in the business. Archford Capital Strategies LLC increased its holdings in shares of KAR Auction Services by 832.0% in the second quarter. Archford Capital Strategies LLC now owns 932 shares of the specialty retailer’s stock valued at $103,000 after purchasing an additional 832 shares during the last quarter. Acrospire Investment Management LLC acquired a new position in shares of KAR Auction Services in the second quarter valued at $118,000. Tower Research Capital LLC TRC increased its holdings in shares of KAR Auction Services by 378.4% in the first quarter. Tower Research Capital LLC TRC now owns 2,966 shares of the specialty retailer’s stock valued at $130,000 after purchasing an additional 2,346 shares during the last quarter. CENTRAL TRUST Co acquired a new position in shares of KAR Auction Services in the second quarter valued at $150,000. Finally, SG Americas Securities LLC acquired a new position in shares of KAR Auction Services in the first quarter valued at $162,000. Hedge funds and other institutional investors own 99.27% of the company’s stock.
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 or ADESA), Insurance Auto Auctions, Inc (IAA) and Automotive Finance Corporation (AFC).
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