KAR Auction Services (NYSE:KAR) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Saturday.
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. “
Several other research firms also recently weighed in on KAR. Stephens reissued a “hold” rating and issued a $60.00 target price on shares of KAR Auction Services in a research report on Thursday, August 9th. Robert W. Baird boosted their target price on shares of KAR Auction Services from $62.00 to $64.00 and gave the stock an “outperform” rating in a research report on Thursday, August 9th. Gabelli downgraded shares of 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. SunTrust Banks set a $70.00 target price on shares of KAR Auction Services and gave the stock a “buy” rating in a research report on Thursday, August 9th. Finally, Barrington Research reissued a “buy” rating on shares of KAR Auction Services in a research report on Monday, August 6th. Five equities research analysts have rated the stock with a hold rating and five have given a buy rating to the company. The stock presently has an average rating of “Buy” and an average price target of $65.29.
KAR Auction Services (NYSE:KAR) last released its earnings results on Tuesday, November 6th. The specialty retailer reported $0.70 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.71 by ($0.01). The company had revenue of $933.50 million during the quarter, compared to the consensus estimate of $910.43 million. KAR Auction Services had a return on equity of 26.74% and a net margin of 11.62%. KAR Auction Services’s revenue for the quarter was up 10.7% on a year-over-year basis. During the same period in the previous year, the firm posted $0.57 EPS. On average, equities analysts expect that KAR Auction Services will post 3 EPS for the current year.
In related news, COO Donald S. Gottwald sold 10,000 shares of the business’s stock in a transaction dated Tuesday, August 14th. The shares were sold at an average price of $61.53, for a total transaction of $615,300.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, EVP Benjamin Skuy sold 59,560 shares of the business’s stock in a transaction dated Friday, August 31st. The shares were sold at an average price of $62.74, for a total transaction of $3,736,794.40. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 127,560 shares of company stock valued at $7,978,854. Insiders own 1.29% of the company’s stock.
Large investors have recently made changes to their positions in the stock. Townsend & Associates Inc bought a new stake in shares of KAR Auction Services during the 2nd quarter valued at about $120,000. Bruderman Asset Management LLC bought a new stake in shares of KAR Auction Services during the 2nd quarter valued at about $121,000. Harvest Fund Management Co. Ltd bought a new stake in shares of KAR Auction Services during the 3rd quarter valued at about $153,000. Tower Research Capital LLC TRC grew its position in shares of KAR Auction Services by 1,334.5% during the 2nd quarter. Tower Research Capital LLC TRC now owns 3,199 shares of the specialty retailer’s stock valued at $175,000 after buying an additional 2,976 shares during the last quarter. Finally, Park Avenue Securities LLC bought a new stake in shares of KAR Auction Services during the 3rd quarter valued at about $202,000. 99.24% of the stock is owned by institutional investors and hedge funds.
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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