Zacks Investment Research Lowers KAR Auction Services, Inc (NYSE:KAR) to Sell

Zacks Investment Research lowered shares of KAR Auction Services, Inc (NYSE:KAR) from a hold rating to a sell rating in a research report report published on Wednesday, July 12th.

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 analysts have also commented on KAR. Gabelli initiated coverage on shares of KAR Auction Services in a report on Friday, April 7th. They issued a buy rating on the stock. BidaskClub downgraded shares of KAR Auction Services from a hold rating to a sell rating in a research note on Saturday, June 17th. Two research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. The stock has an average rating of Buy and a consensus price target of $54.33.

Shares of KAR Auction Services (KAR) opened at 43.04 on Wednesday. The stock has a market capitalization of $5.86 billion, a P/E ratio of 26.40 and a beta of 1.12. The stock has a 50 day moving average price of $41.68 and a 200 day moving average price of $43.43. KAR Auction Services has a 52 week low of $38.16 and a 52 week high of $47.03.

KAR Auction Services (NYSE:KAR) last posted its earnings results on Tuesday, August 8th. The specialty retailer reported $0.65 earnings per share for the quarter, beating the consensus estimate of $0.58 by $0.07. The company had revenue of $858 million for the quarter, compared to analyst estimates of $850.67 million. KAR Auction Services had a net margin of 6.83% and a return on equity of 21.46%. KAR Auction Services’s revenue was up 8.8% on a year-over-year basis. During the same period in the previous year, the business posted $0.55 EPS. On average, equities research analysts expect that KAR Auction Services will post $2.24 EPS for the current year.

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The business also recently announced a quarterly dividend, which will be paid on Tuesday, October 3rd. Investors of record on Wednesday, September 20th will be given a $0.32 dividend. This represents a $1.28 dividend on an annualized basis and a dividend yield of 2.97%. The ex-dividend date of this dividend is Tuesday, September 19th. KAR Auction Services’s dividend payout ratio (DPR) is 78.53%.

In other news, CEO John W. Kett sold 10,011 shares of the stock in a transaction dated Tuesday, August 1st. The shares were sold at an average price of $42.01, for a total value of $420,562.11. Following the completion of the transaction, the chief executive officer now owns 65,982 shares in the company, valued at approximately $2,771,903.82. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO John W. Kett sold 9,913 shares of the stock in a transaction dated Thursday, June 1st. The shares were sold at an average price of $43.92, for a total transaction of $435,378.96. Following the completion of the transaction, the chief executive officer now owns 51,805 shares of the company’s stock, valued at approximately $2,275,275.60. The disclosure for this sale can be found here. Insiders sold a total of 29,932 shares of company stock worth $1,276,878 over the last ninety days. Insiders own 1.30% of the company’s stock.

Institutional investors have recently bought and sold shares of the stock. Acrospire Investment Management LLC acquired a new position in KAR Auction Services during the second quarter valued at $118,000. Toronto Dominion Bank increased its position in KAR Auction Services by 7.2% in the first quarter. Toronto Dominion Bank now owns 2,830 shares of the specialty retailer’s stock valued at $124,000 after buying an additional 190 shares during the period. Tower Research Capital LLC TRC increased its position in 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 buying an additional 2,346 shares during the period. CENTRAL TRUST Co acquired a new position in KAR Auction Services during the second quarter valued at $150,000. Finally, SG Americas Securities LLC acquired a new position in KAR Auction Services during the first quarter valued at $162,000.

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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