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. “
Other analysts have also recently issued reports about the company. ValuEngine raised KAR Auction Services from a hold rating to a buy rating in a research report on Friday, June 7th. Barrington Research reaffirmed a buy rating and set a $62.50 price objective on shares of KAR Auction Services in a research report on Friday, May 3rd. Finally, Robert W. Baird reissued a buy rating and issued a $56.00 price target on shares of KAR Auction Services in a report on Wednesday, February 20th. Three analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. The company has a consensus rating of Buy and an average target price of $61.50.
KAR Auction Services (NYSE:KAR) last posted its quarterly earnings data on Tuesday, May 7th. The specialty retailer reported $0.70 earnings per share for the quarter, missing analysts’ consensus estimates of $0.77 by ($0.07). KAR Auction Services had a return on equity of 25.43% and a net margin of 8.17%. The company had revenue of $1.05 billion for the quarter, compared to analyst estimates of $1.01 billion. During the same period in the previous year, the business posted $0.82 earnings per share. The firm’s revenue was up 10.1% compared to the same quarter last year. As a group, research analysts forecast that KAR Auction Services will post 2.93 EPS for the current year.
The firm also recently declared a quarterly dividend, which will be paid on Monday, June 17th. Stockholders of record on Monday, June 3rd will be issued a $0.35 dividend. The ex-dividend date of this dividend is Friday, May 31st. This represents a $1.40 annualized dividend and a dividend yield of 2.33%. KAR Auction Services’s dividend payout ratio is currently 47.30%.
Institutional investors and hedge funds have recently bought and sold shares of the company. Victory Capital Management Inc. lifted its holdings in shares of KAR Auction Services by 0.8% in the 4th quarter. Victory Capital Management Inc. now owns 2,078,532 shares of the specialty retailer’s stock valued at $99,188,000 after buying an additional 16,455 shares during the period. Mawer Investment Management Ltd. lifted its holdings in shares of KAR Auction Services by 3.2% in the 4th quarter. Mawer Investment Management Ltd. now owns 3,619,199 shares of the specialty retailer’s stock valued at $172,708,000 after buying an additional 113,050 shares during the period. Boston Partners increased its stake in KAR Auction Services by 98.1% in the 4th quarter. Boston Partners now owns 5,470,361 shares of the specialty retailer’s stock valued at $261,045,000 after purchasing an additional 2,708,310 shares in the last quarter. Gideon Capital Advisors Inc. purchased a new position in KAR Auction Services in the 4th quarter valued at approximately $475,000. Finally, Steel Canyon Capital LLC increased its stake in KAR Auction Services by 184.6% in the 4th quarter. Steel Canyon Capital LLC now owns 247,829 shares of the specialty retailer’s stock valued at $11,826,000 after purchasing an additional 160,746 shares in the last quarter. 99.47% 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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