KAR Auction Services Inc (KAR) Receives Consensus Rating of “Buy” from Brokerages

Shares of KAR Auction Services Inc (NYSE:KAR) have been given an average recommendation of “Buy” by the ten analysts that are presently covering the firm, Marketbeat reports. Four equities research analysts have rated the stock with a hold recommendation and six have issued a buy recommendation on the company. The average 12 month price objective among analysts that have updated their coverage on the stock in the last year is $64.50.

KAR has been the subject of a number of analyst reports. ValuEngine raised KAR Auction Services from a “hold” rating to a “buy” rating in a research report on Thursday, July 5th. Barrington Research reissued a “buy” rating on shares of KAR Auction Services in a research report on Monday, August 6th. Zacks Investment Research raised KAR Auction Services from a “hold” rating to a “buy” rating and set a $67.00 price target for the company in a research report on Tuesday, August 7th. SunTrust Banks set a $70.00 price target on KAR Auction Services and gave the company a “buy” rating in a research report on Thursday, August 9th. Finally, Gabelli lowered KAR Auction Services from a “buy” rating to a “hold” rating in a research report on Thursday, August 9th. They noted that the move was a valuation call.

Shares of NYSE:KAR opened at $58.36 on Wednesday. The company has a current ratio of 1.31, a quick ratio of 1.31 and a debt-to-equity ratio of 1.76. KAR Auction Services has a twelve month low of $46.50 and a twelve month high of $64.55. The company has a market cap of $8.02 billion, a PE ratio of 23.34, a PEG ratio of 1.79 and a beta of 1.13.

KAR Auction Services (NYSE:KAR) last issued its earnings results on Tuesday, August 7th. The specialty retailer reported $0.82 earnings per share for the quarter, topping analysts’ consensus estimates of $0.80 by $0.02. KAR Auction Services had a return on equity of 26.15% and a net margin of 11.50%. The company had revenue of $956.60 million for the quarter, compared to analyst estimates of $923.01 million. Equities analysts predict that KAR Auction Services will post 3 EPS for the current fiscal year.

The firm also recently announced a quarterly dividend, which was paid on Wednesday, October 3rd. Stockholders of record on Thursday, September 20th were given a dividend of $0.35 per share. This represents a $1.40 annualized dividend and a dividend yield of 2.40%. The ex-dividend date of this dividend was Wednesday, September 19th. KAR Auction Services’s dividend payout ratio is presently 56.00%.

In other news, EVP Benjamin Skuy sold 59,560 shares of the firm’s stock in a transaction on Friday, August 31st. The stock was sold at an average price of $62.74, for a total transaction of $3,736,794.40. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, 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 value of $9,316,500.00. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 277,560 shares of company stock valued at $17,295,354. Insiders own 1.29% of the company’s stock.

Several institutional investors have recently made changes to their positions in the company. BlackRock Inc. increased its position in shares of KAR Auction Services by 19.5% during the 2nd quarter. BlackRock Inc. now owns 7,506,952 shares of the specialty retailer’s stock valued at $411,380,000 after purchasing an additional 1,226,197 shares during the last quarter. Summit Trail Advisors LLC grew its stake in shares of KAR Auction Services by 5,312.3% during the 1st quarter. Summit Trail Advisors LLC now owns 6,593,747 shares of the specialty retailer’s stock worth $6,594,000 after acquiring an additional 6,471,918 shares during the period. Mawer Investment Management Ltd. grew its stake in shares of KAR Auction Services by 3.2% during the 2nd quarter. Mawer Investment Management Ltd. now owns 3,385,579 shares of the specialty retailer’s stock worth $185,530,000 after acquiring an additional 103,842 shares during the period. Wells Fargo & Company MN grew its stake in shares of KAR Auction Services by 4.7% during the 2nd quarter. Wells Fargo & Company MN now owns 2,892,585 shares of the specialty retailer’s stock worth $158,513,000 after acquiring an additional 129,973 shares during the period. Finally, Frontier Capital Management Co. LLC grew its stake in shares of KAR Auction Services by 5.9% during the 2nd quarter. Frontier Capital Management Co. LLC now owns 2,865,369 shares of the specialty retailer’s stock worth $157,022,000 after acquiring an additional 158,515 shares during the period. 99.73% of the stock is owned by hedge funds and other institutional investors.

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.

Featured Story: What is the Rule of 72?

Analyst Recommendations for KAR Auction Services (NYSE:KAR)

Receive News & Ratings for KAR Auction Services Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for KAR Auction Services and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply