KAR Auction Services, Inc (NYSE:KAR) Announces $0.32 Quarterly Dividend
KAR Auction Services, Inc (NYSE:KAR) announced a quarterly dividend on Tuesday, August 8th, RTT News reports. Investors of record on Wednesday, September 20th will be paid a dividend of 0.32 per share by the specialty retailer on Tuesday, October 3rd. This represents a $1.28 dividend on an annualized basis and a yield of 3.16%.
KAR Auction Services has raised its dividend by an average of 26.0% annually over the last three years and has increased its dividend every year for the last 4 years. KAR Auction Services has a dividend payout ratio of 57.9% meaning its dividend is sufficiently covered by earnings. Analysts expect KAR Auction Services to earn $2.48 per share next year, which means the company should continue to be able to cover its $1.28 annual dividend with an expected future payout ratio of 51.6%.
Shares of KAR Auction Services (NYSE KAR) traded down 2.15% during mid-day trading on Tuesday, reaching $40.56. The company had a trading volume of 1,611,084 shares. The company has a 50 day moving average price of $41.70 and a 200 day moving average price of $43.54. The company has a market capitalization of $5.56 billion, a price-to-earnings ratio of 24.43 and a beta of 1.12. KAR Auction Services has a one year low of $38.16 and a one year high of $47.03.
KAR Auction Services (NYSE:KAR) last released its quarterly earnings data on Tuesday, May 9th. The specialty retailer reported $0.62 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.58 by $0.04. The business had revenue of $866.60 million for the quarter, compared to analysts’ expectations of $848.73 million. KAR Auction Services had a return on equity of 20.54% and a net margin of 7.16%. The firm’s quarterly revenue was up 14.3% on a year-over-year basis. During the same period in the prior year, the firm posted $0.55 EPS. On average, analysts anticipate that KAR Auction Services will post $2.22 EPS for the current year.
In other news, CEO John W. Kett sold 9,913 shares of the stock in a transaction on Thursday, June 1st. The stock was sold at an average price of $43.92, for a total transaction of $435,378.96. Following the transaction, the chief executive officer now directly owns 51,805 shares of the company’s stock, valued at approximately $2,275,275.60. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, COO Donald S. Gottwald sold 18,125 shares of the stock in a transaction on Wednesday, May 10th. The shares were sold at an average price of $44.29, for a total value of $802,756.25. The disclosure for this sale can be found here. Insiders sold a total of 48,057 shares of company stock worth $2,079,634 over the last ninety days. 1.30% of the stock is currently owned by insiders.
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Several research firms recently issued reports on KAR. BidaskClub cut KAR Auction Services from a “hold” rating to a “sell” rating in a research report on Saturday, June 17th. Zacks Investment Research raised KAR Auction Services from a “sell” rating to a “hold” rating in a research report on Friday, May 12th. Finally, Gabelli began coverage on KAR Auction Services in a research report on Tuesday, July 4th. They issued a “buy” rating and a $62.00 price objective on the stock. One investment analyst has rated the stock with a sell rating, one has given a hold rating and four have assigned a buy rating to the company. The stock presently has an average rating of “Buy” and an average price target of $54.33.
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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