KAR Auction Services Inc. (KAR) Shares Gap Up to $42.56
Shares of KAR Auction Services Inc. (NYSE:KAR) gapped up before the market opened on Wednesday . The stock had previously closed at $42.50, but opened at $42.56. KAR Auction Services shares last traded at $42.67, with a volume of 730,551 shares.
KAR has been the subject of a number of recent analyst reports. Zacks Investment Research raised KAR Auction Services from a “hold” rating to a “buy” rating and set a $46.00 price objective for the company in a research report on Wednesday, July 6th. Northcoast Research downgraded KAR Auction Services from a “buy” rating to a “neutral” rating in a research report on Thursday, July 14th. JPMorgan Chase & Co. reaffirmed a “buy” rating on shares of KAR Auction Services in a research report on Wednesday, August 3rd. Jefferies Group lifted their target price on KAR Auction Services from $47.00 to $50.00 and gave the company a “buy” rating in a research report on Thursday, August 4th. Finally, Susquehanna initiated coverage on KAR Auction Services in a research report on Friday, August 26th. They issued a “positive” rating and a $50.00 target price for the company. Three research analysts have rated the stock with a hold rating and five have assigned a buy rating to the company. The stock has an average rating of “Buy” and an average price target of $43.71.
The stock’s 50-day moving average is $41.74 and its 200 day moving average is $40.25. The company has a market capitalization of $5.93 billion, a price-to-earnings ratio of 26.88 and a beta of 1.48.
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KAR Auction Services (NYSE:KAR) last issued its quarterly earnings data on Tuesday, August 2nd. The company reported $0.55 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.56 by $0.01. KAR Auction Services had a net margin of 7.79% and a return on equity of 19.03%. The company earned $771.80 million during the quarter, compared to analysts’ expectations of $757.67 million. During the same quarter in the prior year, the company earned $0.51 earnings per share. The firm’s revenue was up 17.2% compared to the same quarter last year. On average, equities analysts expect that KAR Auction Services Inc. will post $2.13 earnings per share for the current fiscal year.
The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 4th. Stockholders of record on Wednesday, September 21st will be given a $0.29 dividend. The ex-dividend date of this dividend is Monday, September 19th. This represents a $1.16 annualized dividend and a dividend yield of 2.70%. KAR Auction Services’s dividend payout ratio is currently 72.50%.
In related news, EVP Benjamin Skuy sold 10,000 shares of the stock in a transaction dated Friday, September 2nd. The stock was sold at an average price of $42.74, for a total transaction of $427,400.00. Following the transaction, the executive vice president now directly owns 87,420 shares in the company, valued at $3,736,330.80. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, COO Donald S. Gottwald sold 18,125 shares of the stock in a transaction dated Wednesday, August 10th. The stock was sold at an average price of $40.38, for a total value of $731,887.50. Following the transaction, the chief operating officer now owns 1,039 shares in the company, valued at $41,954.82. The disclosure for this sale can be found here. 1.30% of the stock is owned by insiders.
A number of institutional investors have recently added to or reduced their stakes in the company. FMR LLC increased its position in KAR Auction Services by 40.3% in the second quarter. FMR LLC now owns 10,444,899 shares of the company’s stock valued at $435,970,000 after buying an additional 2,998,636 shares during the period. Vanguard Group Inc. increased its position in KAR Auction Services by 3.5% in the second quarter. Vanguard Group Inc. now owns 9,964,804 shares of the company’s stock valued at $415,932,000 after buying an additional 339,126 shares during the period. Vaughan Nelson Investment Management L.P. increased its position in KAR Auction Services by 0.9% in the second quarter. Vaughan Nelson Investment Management L.P. now owns 3,572,806 shares of the company’s stock valued at $149,129,000 after buying an additional 32,250 shares during the period. BlackRock Institutional Trust Company N.A. increased its position in KAR Auction Services by 0.3% in the second quarter. BlackRock Institutional Trust Company N.A. now owns 3,549,469 shares of the company’s stock valued at $148,155,000 after buying an additional 10,126 shares during the period. Finally, Point72 Asset Management L.P. increased its position in KAR Auction Services by 127.9% in the second quarter. Point72 Asset Management L.P. now owns 3,266,800 shares of the company’s stock valued at $136,356,000 after buying an additional 1,833,200 shares during the period.
About KAR Auction Services
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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