KAR Auction Services (NYSE:KAR) released its quarterly earnings results on Tuesday. The specialty retailer reported $0.70 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.71 by ($0.01), Briefing.com reports. KAR Auction Services had a return on equity of 26.15% and a net margin of 11.50%. The firm had revenue of $933.50 million for the quarter, compared to analysts’ expectations of $910.43 million. During the same period last year, the firm earned $0.57 EPS. The business’s quarterly revenue was up 10.7% on a year-over-year basis. KAR Auction Services updated its FY 2018 guidance to $2.89-3.04 EPS and its FY18 guidance to $2.89-3.04 EPS.
KAR stock traded down $1.78 during mid-day trading on Wednesday, hitting $55.95. 1,709,800 shares of the company were exchanged, compared to its average volume of 894,323. The firm has a market cap of $7.81 billion, a P/E ratio of 22.38, a P/E/G ratio of 1.74 and a beta of 1.08. The company has a debt-to-equity ratio of 1.76, a current ratio of 1.31 and a quick ratio of 1.31. KAR Auction Services has a twelve month low of $47.43 and a twelve month high of $64.55.
The business also recently disclosed a quarterly dividend, which will be paid on Friday, January 4th. Shareholders of record on Thursday, December 20th will be issued a dividend of $0.35 per share. This represents a $1.40 annualized dividend and a yield of 2.50%. The ex-dividend date is Wednesday, December 19th. KAR Auction Services’s dividend payout ratio is currently 56.00%.
Several equities research analysts recently issued reports on KAR shares. Barrington Research reaffirmed a “buy” rating on shares of KAR Auction Services in a research note on Monday, August 6th. Zacks Investment Research raised shares of KAR Auction Services from a “hold” rating to a “buy” rating and set a $67.00 price target on the stock in a research note on Tuesday, August 7th. SunTrust Banks set a $70.00 price target on shares of KAR Auction Services and gave the stock a “buy” rating in a research note on Thursday, August 9th. Gabelli downgraded shares of KAR Auction Services from a “buy” rating to a “hold” rating in a research note on Thursday, August 9th. They noted that the move was a valuation call. Finally, Robert W. Baird lifted their price target on shares of KAR Auction Services from $62.00 to $64.00 and gave the stock an “outperform” rating in a research note on Thursday, August 9th. Three investment analysts have rated the stock with a hold rating and seven have issued a buy rating to the company’s stock. The stock currently has a consensus rating of “Buy” and a consensus target price of $65.29.
In other KAR Auction Services news, CEO James P. Hallett sold 150,000 shares of the firm’s stock in a transaction on Friday, August 10th. The shares were sold at an average price of $62.11, for a total transaction of $9,316,500.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, COO Donald S. Gottwald sold 10,000 shares of the firm’s stock in a transaction on Tuesday, August 14th. The stock was sold at an average price of $61.53, for a total transaction of $615,300.00. The disclosure for this sale can be found here. Over the last three months, insiders have sold 277,560 shares of company stock valued at $17,295,354. 1.29% of the stock is owned by company insiders.
Hedge funds have recently made changes to their positions in the business. Strs Ohio boosted its holdings in shares of KAR Auction Services by 11.9% in the 3rd quarter. Strs Ohio now owns 9,517 shares of the specialty retailer’s stock valued at $568,000 after buying an additional 1,011 shares during the period. Legal & General Group Plc boosted its holdings in shares of KAR Auction Services by 1.1% in the 2nd quarter. Legal & General Group Plc now owns 97,305 shares of the specialty retailer’s stock valued at $5,333,000 after buying an additional 1,013 shares during the period. Kendall Capital Management boosted its holdings in shares of KAR Auction Services by 8.4% in the 3rd quarter. Kendall Capital Management now owns 13,990 shares of the specialty retailer’s stock valued at $835,000 after buying an additional 1,090 shares during the period. Brookstone Capital Management boosted its holdings in shares of KAR Auction Services by 15.2% in the 3rd quarter. Brookstone Capital Management now owns 11,054 shares of the specialty retailer’s stock valued at $660,000 after buying an additional 1,462 shares during the period. Finally, Raymond James Trust N.A. boosted its holdings in shares of KAR Auction Services by 16.7% in the 2nd quarter. Raymond James Trust N.A. now owns 11,511 shares of the specialty retailer’s stock valued at $630,000 after buying an additional 1,651 shares during the period. 99.24% of the stock is owned by institutional investors.
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About KAR Auction Services
KAR Auction Services, Inc, together with its subsidiaries, provides used car auction and salvage auction services in the United States, Canada, Mexico, and the United Kingdom. The company operates through three segments: ADESA Auctions, IAA, and AFC. The ADESA Auctions segment offers whole car auctions and related services to the vehicle remarketing industry through online auctions and auction facilities.
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