Zacks Investment Research Lowers KAR Auction Services Inc. (KAR) to Sell
KAR Auction Services Inc. (NYSE:KAR) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued 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. “
A number of other equities research analysts have also recently issued reports on KAR. Jefferies Group upped their price objective on shares of KAR Auction Services from $47.00 to $50.00 and gave the company a “buy” rating in a research note on Thursday, August 4th. JPMorgan Chase & Co. reaffirmed a “buy” rating on shares of KAR Auction Services in a research note on Wednesday, August 3rd. Susquehanna began coverage on shares of KAR Auction Services in a research note on Friday, August 26th. They issued a “positive” rating and a $50.00 price objective for the company. Northcoast Research cut shares of KAR Auction Services from a “buy” rating to a “neutral” rating in a research note on Thursday, July 14th. Finally, Macquarie reaffirmed an “outperform” rating on shares of KAR Auction Services in a research note on Monday, August 29th. One equities research analyst has rated the stock with a sell rating, two have given a hold rating and five have assigned a buy rating to the company’s stock. The stock has a consensus rating of “Buy” and an average target price of $43.71.
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KAR Auction Services (NYSE:KAR) traded down 0.66% during midday trading on Wednesday, reaching $43.45. 756,081 shares of the company’s stock were exchanged. The firm has a 50-day moving average price of $42.57 and a 200 day moving average price of $40.77. The company has a market cap of $5.99 billion, a price-to-earnings ratio of 27.19 and a beta of 1.37. KAR Auction Services has a 12-month low of $31.54 and a 12-month high of $44.10.
KAR Auction Services (NYSE:KAR) last announced its quarterly earnings data on Tuesday, August 2nd. The company reported $0.55 earnings per share (EPS) for the quarter, missing the Zacks’ 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 business earned $771.80 million during the quarter, compared to analysts’ expectations of $757.67 million. During the same period last year, the company posted $0.51 EPS. KAR Auction Services’s revenue for the quarter was up 17.2% on a year-over-year basis. On average, analysts expect that KAR Auction Services will post $2.13 EPS for the current fiscal year.
The business also recently disclosed a quarterly dividend, which was paid on Tuesday, October 4th. Shareholders of record on Wednesday, September 21st were issued a $0.29 dividend. The ex-dividend date of this dividend was Monday, September 19th. This represents a $1.16 annualized dividend and a yield of 2.67%. KAR Auction Services’s dividend payout ratio (DPR) is presently 72.50%.
In related news, Director Mark E. Hill acquired 12,000 shares of the firm’s stock in a transaction on Friday, September 9th. The stock was acquired at an average cost of $41.78 per share, for a total transaction of $501,360.00. Following the acquisition, the director now owns 25,500 shares of the company’s stock, valued at $1,065,390. The purchase was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, COO Donald S. Gottwald sold 18,125 shares of the company’s stock in a transaction on Wednesday, August 10th. The stock was sold at an average price of $40.38, for a total transaction of $731,887.50. Following the completion of the transaction, the chief operating officer now owns 1,039 shares of the company’s stock, valued at $41,954.82. The disclosure for this sale can be found here. 1.30% of the stock is currently owned by company insiders.
A number of hedge funds and other institutional investors have recently modified their holdings of KAR. Lazard Asset Management LLC bought a new position in shares of KAR Auction Services during the first quarter valued at approximately $823,000. Meeder Asset Management Inc. raised its position in shares of KAR Auction Services by 3.7% in the first quarter. Meeder Asset Management Inc. now owns 12,810 shares of the company’s stock valued at $488,000 after buying an additional 452 shares during the period. State Street Corp raised its position in shares of KAR Auction Services by 3.5% in the first quarter. State Street Corp now owns 1,553,249 shares of the company’s stock valued at $59,240,000 after buying an additional 52,409 shares during the period. Motley Fool Wealth Management LLC raised its position in shares of KAR Auction Services by 10.4% in the first quarter. Motley Fool Wealth Management LLC now owns 113,160 shares of the company’s stock valued at $4,316,000 after buying an additional 10,617 shares during the period. Finally, Huntington Asset Advisors Inc. bought a new position in shares of KAR Auction Services during the first quarter valued at approximately $2,278,000.
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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