SunTrust Banks Cuts KAR Auction Services (KAR) Price Target to $65.00

KAR Auction Services (NYSE:KAR) had its price target lowered by SunTrust Banks to $65.00 in a report issued on Monday, The Fly reports. SunTrust Banks currently has a buy rating on the specialty retailer’s stock. SunTrust Banks also issued estimates for KAR Auction Services’ Q4 2018 earnings at $0.57 EPS, FY2018 earnings at $2.91 EPS, Q1 2019 earnings at $0.81 EPS, Q2 2019 earnings at $0.92 EPS, Q3 2019 earnings at $0.76 EPS, Q4 2019 earnings at $0.67 EPS, FY2019 earnings at $3.16 EPS and FY2020 earnings at $3.58 EPS.

A number of other analysts also recently commented on KAR. Zacks Investment Research raised KAR Auction Services from a sell rating to a hold rating in a research report on Tuesday, November 27th. ValuEngine downgraded KAR Auction Services from a buy rating to a hold rating in a research report on Thursday, October 4th. Finally, Barrington Research set a $70.00 price target on KAR Auction Services and gave the company a buy rating in a research report on Monday, November 5th. Four equities research analysts have rated the stock with a hold rating and six have issued a buy rating to the company’s stock. KAR Auction Services currently has an average rating of Buy and a consensus price target of $64.57.

Shares of KAR opened at $48.57 on Monday. The company has a debt-to-equity ratio of 1.70, a current ratio of 1.32 and a quick ratio of 1.32. The company has a market cap of $6.31 billion, a P/E ratio of 19.43, a price-to-earnings-growth ratio of 1.25 and a beta of 1.22. KAR Auction Services has a 12 month low of $45.36 and a 12 month high of $64.55.

KAR Auction Services (NYSE:KAR) last issued its quarterly earnings results on Tuesday, November 6th. The specialty retailer reported $0.70 EPS for the quarter, missing the Zacks’ consensus estimate of $0.71 by ($0.01). The business had revenue of $933.50 million for the quarter, compared to analysts’ expectations of $910.43 million. KAR Auction Services had a net margin of 11.62% and a return on equity of 26.50%. The business’s revenue was up 10.7% compared to the same quarter last year. During the same period in the previous year, the business posted $0.57 earnings per share. On average, equities research analysts predict that KAR Auction Services will post 2.93 EPS for the current year.

The company also recently announced a quarterly dividend, which was paid on Friday, January 4th. Shareholders of record on Thursday, December 20th were given a $0.35 dividend. This represents a $1.40 dividend on an annualized basis and a yield of 2.88%. The ex-dividend date of this dividend was Wednesday, December 19th. KAR Auction Services’s dividend payout ratio is currently 56.00%.

A number of large investors have recently added to or reduced their stakes in the business. Strs Ohio increased its position in KAR Auction Services by 11.9% in the third quarter. Strs Ohio now owns 9,517 shares of the specialty retailer’s stock worth $568,000 after buying an additional 1,011 shares during the last quarter. Legal & General Group Plc boosted its holdings in shares of KAR Auction Services by 1.1% in the second quarter. Legal & General Group Plc now owns 97,305 shares of the specialty retailer’s stock worth $5,333,000 after acquiring 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 third quarter. Kendall Capital Management now owns 13,990 shares of the specialty retailer’s stock worth $835,000 after acquiring 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 third quarter. Brookstone Capital Management now owns 11,054 shares of the specialty retailer’s stock worth $660,000 after acquiring an additional 1,462 shares during the period. Finally, Teachers Retirement System of The State of Kentucky boosted its holdings in shares of KAR Auction Services by 2.9% in the third quarter. Teachers Retirement System of The State of Kentucky now owns 56,341 shares of the specialty retailer’s stock worth $3,363,000 after acquiring an additional 1,602 shares during the period. 97.26% of the stock is owned by institutional investors and hedge funds.

KAR Auction Services Company Profile

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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