Zacks Investment Research downgraded shares of KAR Auction Services, Inc (NYSE:KAR) from a hold rating to a sell rating in a research report released on Wednesday.
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 issued research reports about the stock. Gabelli assumed coverage on shares of KAR Auction Services in a research report on Tuesday, July 4th. They issued a buy rating and a $62.00 price target for the company. BidaskClub cut shares of KAR Auction Services from a hold rating to a sell rating in a research note on Saturday, June 17th. Two analysts have rated the stock with a sell rating and six have assigned a buy rating to the company’s stock. The company has an average rating of Buy and an average price target of $53.25.
KAR Auction Services (KAR) traded down 0.07% on Wednesday, reaching $40.67. The company’s stock had a trading volume of 737,481 shares. The company has a market capitalization of $5.58 billion, a price-to-earnings ratio of 24.50 and a beta of 1.13. KAR Auction Services has a 1-year low of $38.16 and a 1-year high of $47.03. The stock has a 50 day moving average price of $43.16 and a 200-day moving average price of $43.92.
KAR Auction Services (NYSE:KAR) last released its quarterly earnings results on Tuesday, May 9th. The specialty retailer reported $0.62 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.58 by $0.04. KAR Auction Services had a net margin of 7.16% and a return on equity of 20.54%. The company had revenue of $866.60 million during the quarter, compared to analysts’ expectations of $848.73 million. During the same period in the prior year, the company earned $0.55 earnings per share. The business’s quarterly revenue was up 14.3% compared to the same quarter last year. Equities analysts predict that KAR Auction Services will post $2.22 earnings per share for the current fiscal year.
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The business also recently declared a quarterly dividend, which was paid on Thursday, July 6th. Stockholders of record on Wednesday, June 21st were paid a dividend of $0.32 per share. The ex-dividend date of this dividend was Monday, June 19th. This represents a $1.28 annualized dividend and a dividend yield of 3.15%. KAR Auction Services’s dividend payout ratio (DPR) is currently 77.11%.
In other KAR Auction Services news, COO Donald S. Gottwald sold 18,125 shares of the firm’s stock in a transaction that occurred on Wednesday, May 10th. The shares were sold at an average price of $44.29, for a total value of $802,756.25. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CEO John W. Kett sold 9,938 shares of the firm’s stock in a transaction that occurred on Monday, May 1st. The shares were sold at an average price of $43.41, for a total transaction of $431,408.58. Following the completion of the transaction, the chief executive officer now directly owns 44,694 shares in the company, valued at $1,940,166.54. The disclosure for this sale can be found here. Insiders have sold 47,984 shares of company stock worth $2,090,480 over the last three months. 1.30% of the stock is owned by insiders.
A number of institutional investors have recently made changes to their positions in KAR. CENTRAL TRUST Co acquired a new position in shares of KAR Auction Services during the second quarter worth about $150,000. Farmers & Merchants Trust Co of Chambersburg PA boosted its position in shares of KAR Auction Services by 7.3% in the second quarter. Farmers & Merchants Trust Co of Chambersburg PA now owns 49,280 shares of the specialty retailer’s stock worth $2,068,000 after buying an additional 3,335 shares during the last quarter. GW&K Investment Management LLC boosted its position in shares of KAR Auction Services by 2.3% in the second quarter. GW&K Investment Management LLC now owns 1,077,635 shares of the specialty retailer’s stock worth $45,228,000 after buying an additional 23,852 shares during the last quarter. Bank of Montreal Can boosted its position in shares of KAR Auction Services by 4.6% in the second quarter. Bank of Montreal Can now owns 452,983 shares of the specialty retailer’s stock worth $19,012,000 after buying an additional 19,788 shares during the last quarter. Finally, Atria Investments LLC boosted its position in shares of KAR Auction Services by 21.4% in the second quarter. Atria Investments LLC now owns 7,933 shares of the specialty retailer’s stock worth $333,000 after buying an additional 1,399 shares during 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 or ADESA), Insurance Auto Auctions, Inc (IAA) and Automotive Finance Corporation (AFC).
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