KAR Auction Services (KAR) Downgraded by Zacks Investment Research

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Zacks Investment Research lowered shares of KAR Auction Services (NYSE:KAR) from a hold rating to a sell rating in a report released on Tuesday 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 a number of other research reports. Barrington Research reiterated a buy rating and issued a $62.50 target price on shares of KAR Auction Services in a research report on Friday, May 3rd. Robert W. Baird reiterated a buy rating and issued a $56.00 target price on shares of KAR Auction Services in a research report on Wednesday, February 20th. One investment analyst has rated the stock with a sell rating, two have assigned a hold rating and four have given a buy rating to the stock. The stock presently has an average rating of Hold and a consensus target price of $61.50.

Shares of KAR traded down $0.23 during mid-day trading on Tuesday, hitting $55.19. 215,232 shares of the company traded hands, compared to its average volume of 1,215,483. The company has a market cap of $7.24 billion, a P/E ratio of 18.65, a price-to-earnings-growth ratio of 1.92 and a beta of 1.14. KAR Auction Services has a 1-year low of $43.32 and a 1-year high of $64.55. The company has a quick ratio of 1.17, a current ratio of 1.17 and a debt-to-equity ratio of 2.38.

KAR Auction Services (NYSE:KAR) last issued its earnings results on Tuesday, May 7th. The specialty retailer reported $0.70 EPS for the quarter, missing the Zacks’ consensus estimate of $0.77 by ($0.07). The firm had revenue of $1.05 billion during the quarter, compared to analysts’ expectations of $1.01 billion. KAR Auction Services had a net margin of 8.17% and a return on equity of 25.43%. KAR Auction Services’s quarterly revenue was up 10.1% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.82 EPS. On average, research analysts anticipate that KAR Auction Services will post 2.94 EPS for the current fiscal year.

The company also recently announced a quarterly dividend, which will be paid on Monday, June 17th. Investors of record on Monday, June 3rd will be given a $0.35 dividend. The ex-dividend date of this dividend is Friday, May 31st. This represents a $1.40 dividend on an annualized basis and a yield of 2.54%. KAR Auction Services’s dividend payout ratio is currently 47.30%.

A number of hedge funds and other institutional investors have recently modified their holdings of KAR. Wealthsource Partners LLC boosted its position in KAR Auction Services by 2.1% in the 1st quarter. Wealthsource Partners LLC now owns 9,181 shares of the specialty retailer’s stock worth $471,000 after purchasing an additional 187 shares in the last quarter. IFP Advisors Inc boosted its position in KAR Auction Services by 13.4% in the 4th quarter. IFP Advisors Inc now owns 1,683 shares of the specialty retailer’s stock worth $79,000 after purchasing an additional 199 shares in the last quarter. PNC Financial Services Group Inc. boosted its position in KAR Auction Services by 8.3% in the 4th quarter. PNC Financial Services Group Inc. now owns 3,083 shares of the specialty retailer’s stock worth $147,000 after purchasing an additional 236 shares in the last quarter. Private Capital Group LLC boosted its position in KAR Auction Services by 32.8% in the 4th quarter. Private Capital Group LLC now owns 993 shares of the specialty retailer’s stock worth $48,000 after purchasing an additional 245 shares in the last quarter. Finally, D.A. Davidson & CO. boosted its position in KAR Auction Services by 4.3% in the 4th quarter. D.A. Davidson & CO. now owns 6,891 shares of the specialty retailer’s stock worth $329,000 after purchasing an additional 282 shares in the last quarter. Hedge funds and other institutional investors own 99.23% of the company’s stock.

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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