KAR Auction Services, Inc (NYSE:KAR) announced its earnings results on Tuesday. The specialty retailer reported $0.65 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.58 by $0.07, Briefing.com reports. The company had revenue of $858 million for the quarter, compared to analyst estimates of $850.67 million. KAR Auction Services had a return on equity of 20.54% and a net margin of 7.16%. KAR Auction Services’s revenue for the quarter was up 8.8% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.55 earnings per share. KAR Auction Services updated its FY17 guidance to $2.15-2.25 EPS.
Shares of KAR Auction Services (NYSE KAR) traded up 7.82% on Wednesday, reaching $43.73. The company’s stock had a trading volume of 2,746,813 shares. The company has a market cap of $6.00 billion, a PE ratio of 26.34 and a beta of 1.12. KAR Auction Services has a 52-week low of $38.16 and a 52-week high of $47.03. The firm has a 50 day moving average of $41.70 and a 200 day moving average of $43.54.
The firm also recently declared a quarterly dividend, which will be paid on Tuesday, October 3rd. Investors of record on Wednesday, September 20th will be issued a dividend of $0.32 per share. The ex-dividend date of this dividend is Tuesday, September 19th. This represents a $1.28 dividend on an annualized basis and a yield of 2.93%. KAR Auction Services’s dividend payout ratio is 77.11%.
KAR has been the topic of a number of recent research reports. Zacks Investment Research downgraded KAR Auction Services from a “hold” rating to a “sell” rating in a research note on Wednesday, July 12th. BidaskClub downgraded KAR Auction Services from a “hold” rating to a “sell” rating in a research note on Saturday, June 17th. Finally, Gabelli began coverage on KAR Auction Services in a research note on Tuesday, July 4th. They set a “buy” rating and a $62.00 price target for the company. One equities research analyst has rated the stock with a sell rating, one has issued a hold rating and four have assigned a buy rating to the company. The stock currently has a consensus rating of “Buy” and an average target price of $54.33.
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In other news, CEO John W. Kett sold 10,008 shares of the stock in a transaction dated Monday, July 3rd. The shares were sold at an average price of $42.06, for a total transaction of $420,936.48. Following the transaction, the chief executive officer now owns 58,941 shares of the company’s stock, valued at approximately $2,479,058.46. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO John W. Kett sold 9,913 shares of the stock in a transaction dated 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 in the company, valued at approximately $2,275,275.60. The disclosure for this sale can be found here. In the last three months, insiders sold 29,932 shares of company stock worth $1,276,878. 1.30% of the stock is currently owned by insiders.
Several institutional investors have recently added to or reduced their stakes in the company. Los Angeles Capital Management & Equity Research Inc. raised its stake in KAR Auction Services by 34.8% in the second quarter. Los Angeles Capital Management & Equity Research Inc. now owns 693,524 shares of the specialty retailer’s stock worth $29,107,000 after buying an additional 179,055 shares in the last quarter. Sawtooth Solutions LLC raised its stake in KAR Auction Services by 1.8% in the second quarter. Sawtooth Solutions LLC now owns 8,598 shares of the specialty retailer’s stock valued at $361,000 after buying an additional 152 shares during the period. Cipher Capital LP raised its stake in KAR Auction Services by 658.7% in the second quarter. Cipher Capital LP now owns 75,384 shares of the specialty retailer’s stock valued at $3,163,000 after buying an additional 65,448 shares during the period. Pacad Investment Ltd. raised its stake in KAR Auction Services by 3,823.0% in the second quarter. Pacad Investment Ltd. now owns 7,846 shares of the specialty retailer’s stock valued at $329,000 after buying an additional 7,646 shares during the period. Finally, Principal Financial Group Inc. raised its stake in KAR Auction Services by 18.6% in the second quarter. Principal Financial Group Inc. now owns 5,867,365 shares of the specialty retailer’s stock valued at $246,255,000 after buying an additional 918,735 shares during the period.
About KAR Auction Services
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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