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 Wednesday, November 8th. The firm currently has $55.00 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. “
Several other equities research analysts also recently weighed in on the company. Stephens downgraded KAR Auction Services from an overweight rating to an equal weight rating and reduced their price target for the stock from $51.00 to $48.00 in a report on Thursday, September 7th. J P Morgan Chase & Co raised their price objective on KAR Auction Services from $52.00 to $55.00 and gave the stock an overweight rating in a report on Monday, October 30th. Jefferies Group LLC restated a buy rating and set a $50.00 price objective on shares of KAR Auction Services in a report on Tuesday, September 12th. BidaskClub upgraded KAR Auction Services from a strong sell rating to a sell rating in a report on Monday, July 24th. Finally, Gabelli downgraded KAR Auction Services from a buy rating to a hold rating and set a $53.00 price objective on the stock. in a report on Thursday, November 2nd. Three investment analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. KAR Auction Services has an average rating of Buy and an average price target of $52.20.
Shares of KAR Auction Services (NYSE:KAR) opened at $47.95 on Wednesday. The company has a debt-to-equity ratio of 1.90, a quick ratio of 1.35 and a current ratio of 1.35. KAR Auction Services has a 52-week low of $39.95 and a 52-week high of $49.38. The stock has a market capitalization of $6,452.13, a P/E ratio of 20.83, a price-to-earnings-growth ratio of 1.50 and a beta of 1.08.
KAR Auction Services (NYSE:KAR) last issued its quarterly earnings results on Tuesday, October 31st. The specialty retailer reported $0.57 earnings per share for the quarter, topping the consensus estimate of $0.51 by $0.06. KAR Auction Services had a return on equity of 22.37% and a net margin of 6.94%. The firm had revenue of $843.00 million for the quarter, compared to the consensus estimate of $846.42 million. During the same period in the prior year, the business posted $0.50 earnings per share. The company’s revenue for the quarter was up 6.8% on a year-over-year basis. equities research analysts predict that KAR Auction Services will post 2.36 EPS for the current year.
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The business also recently announced a quarterly dividend, which will be paid on Friday, January 5th. Shareholders of record on Wednesday, December 20th will be given a dividend of $0.35 per share. This represents a $1.40 annualized dividend and a yield of 2.92%. The ex-dividend date is Tuesday, December 19th. This is a boost from KAR Auction Services’s previous quarterly dividend of $0.32. KAR Auction Services’s dividend payout ratio (DPR) is 75.29%.
In other news, COO Donald S. Gottwald sold 10,000 shares of the firm’s stock in a transaction on Tuesday, November 14th. The stock was sold at an average price of $48.14, for a total value of $481,400.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 1.30% of the stock is currently owned by company insiders.
Several institutional investors have recently bought and sold shares of KAR. Prudential Financial Inc. purchased a new position in KAR Auction Services in the 1st quarter worth $280,000. Wellington Management Group LLP purchased a new position in KAR Auction Services in the 1st quarter worth $802,000. Teachers Advisors LLC raised its stake in KAR Auction Services by 5.9% in the 1st quarter. Teachers Advisors LLC now owns 141,976 shares of the specialty retailer’s stock worth $6,200,000 after acquiring an additional 7,927 shares during the last quarter. Renaissance Technologies LLC raised its stake in KAR Auction Services by 42.4% in the 1st quarter. Renaissance Technologies LLC now owns 154,900 shares of the specialty retailer’s stock worth $6,764,000 after acquiring an additional 46,100 shares during the last quarter. Finally, BlackRock Inc. raised its stake in KAR Auction Services by 20,047.2% in the 1st quarter. BlackRock Inc. now owns 5,618,436 shares of the specialty retailer’s stock worth $245,357,000 after acquiring an additional 5,590,549 shares during the last quarter. 98.57% of the stock is owned by hedge funds and other institutional investors.
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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