Zacks Investment Research cut shares of KAR Auction Services (NYSE:KAR) from a strong-buy rating to a hold rating in a report released on Friday morning, Zacks.com reports.
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. “
KAR has been the topic of several other reports. CJS Securities downgraded shares of KAR Auction Services from an outperform rating to a market perform rating in a research note on Thursday. ValuEngine raised shares of KAR Auction Services from a sell rating to a hold rating in a research note on Wednesday, October 2nd. One investment analyst has rated the stock with a sell rating, four have given a hold rating and three have assigned a buy rating to the company. The stock has a consensus rating of Hold and a consensus price target of $33.58.
Shares of KAR traded down $0.17 during mid-day trading on Friday, reaching $21.50. The company’s stock had a trading volume of 2,504,173 shares, compared to its average volume of 3,615,075. The stock has a market cap of $2.86 billion, a PE ratio of 7.26, a P/E/G ratio of 1.43 and a beta of 1.06. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 1.00. KAR Auction Services has a 52 week low of $16.41 and a 52 week high of $28.61. The company’s fifty day moving average price is $24.56 and its two-hundred day moving average price is $36.11.
KAR Auction Services (NYSE:KAR) last announced its quarterly earnings data on Tuesday, November 5th. The specialty retailer reported $0.35 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.39 by ($0.04). The business had revenue of $701.90 million during the quarter, compared to the consensus estimate of $697.46 million. KAR Auction Services had a return on equity of 16.83% and a net margin of 6.95%. The company’s revenue was up 14.6% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.70 earnings per share. Research analysts anticipate that KAR Auction Services will post 1.16 EPS for the current year.
The company also recently announced a quarterly dividend, which will be paid on Friday, January 3rd. Investors of record on Friday, December 20th will be paid a $0.19 dividend. This represents a $0.76 annualized dividend and a dividend yield of 3.53%. The ex-dividend date is Thursday, December 19th. KAR Auction Services’s payout ratio is 25.68%.
Hedge funds and other institutional investors have recently modified their holdings of the stock. Baskin Financial Services Inc. purchased a new position in shares of KAR Auction Services in the second quarter worth $260,000. Janus Henderson Group PLC increased its stake in shares of KAR Auction Services by 44.5% in the second quarter. Janus Henderson Group PLC now owns 3,416,468 shares of the specialty retailer’s stock worth $85,412,000 after buying an additional 1,052,915 shares during the period. Clear Street Markets LLC purchased a new position in shares of KAR Auction Services in the second quarter worth $1,366,000. Boston Financial Mangement LLC increased its position in KAR Auction Services by 0.8% during the 2nd quarter. Boston Financial Mangement LLC now owns 484,611 shares of the specialty retailer’s stock valued at $12,115,000 after purchasing an additional 4,043 shares during the period. Finally, RMB Capital Management LLC purchased a new position in KAR Auction Services during the 2nd quarter valued at $1,298,000. 99.42% of the stock is currently owned by institutional investors.
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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