KAR Auction Services Inc (NYSE:KAR) – Equities researchers at Gabelli lifted their FY2018 earnings per share (EPS) estimates for KAR Auction Services in a note issued to investors on Wednesday, according to Zacks Investment Research. Gabelli analyst M. Paige now forecasts that the specialty retailer will earn $3.05 per share for the year, up from their prior estimate of $2.65. Gabelli has a “Buy” rating on the stock. Gabelli also issued estimates for KAR Auction Services’ FY2019 earnings at $3.75 EPS, FY2020 earnings at $4.00 EPS and FY2021 earnings at $4.45 EPS.
KAR Auction Services (NYSE:KAR) last posted its quarterly earnings data on Tuesday, February 20th. The specialty retailer reported $0.63 EPS for the quarter, beating analysts’ consensus estimates of $0.53 by $0.10. The company had revenue of $890.40 million during the quarter, compared to analysts’ expectations of $882.22 million. KAR Auction Services had a return on equity of 23.61% and a net margin of 10.47%. KAR Auction Services’s revenue for the quarter was up 9.4% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.45 earnings per share.
KAR has been the subject of a number of other research reports. Bank of America upped their price target on KAR Auction Services from $60.00 to $66.00 and gave the stock a “buy” rating in a research report on Friday, March 2nd. Zacks Investment Research cut KAR Auction Services from a “strong-buy” rating to a “hold” rating in a research report on Saturday, March 3rd. Barrington Research set a $55.00 price target on KAR Auction Services and gave the stock a “buy” rating in a research report on Sunday, February 25th. Robert W. Baird restated a “buy” rating and issued a $58.00 price target on shares of KAR Auction Services in a research report on Friday, February 23rd. Finally, Stephens set a $57.00 price target on KAR Auction Services and gave the stock a “hold” rating in a research report on Wednesday, January 17th. Two investment analysts have rated the stock with a hold rating and seven have issued a buy rating to the company’s stock. The stock currently has an average rating of “Buy” and a consensus price target of $57.13.
Shares of KAR Auction Services (KAR) traded down $0.03 on Monday, reaching $55.88. The company’s stock had a trading volume of 476,230 shares, compared to its average volume of 994,862. The company has a debt-to-equity ratio of 1.80, a quick ratio of 1.31 and a current ratio of 1.31. The stock has a market capitalization of $7,543.03, a PE ratio of 21.18, a price-to-earnings-growth ratio of 1.72 and a beta of 1.08. KAR Auction Services has a fifty-two week low of $40.27 and a fifty-two week high of $56.75.
Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. boosted its stake in shares of KAR Auction Services by 13.3% in the fourth quarter. BlackRock Inc. now owns 7,018,588 shares of the specialty retailer’s stock worth $354,508,000 after acquiring an additional 825,974 shares during the period. Bessemer Group Inc. boosted its stake in KAR Auction Services by 2.9% during the third quarter. Bessemer Group Inc. now owns 3,207,071 shares of the specialty retailer’s stock valued at $153,105,000 after buying an additional 91,373 shares during the last quarter. Schroder Investment Management Group boosted its stake in KAR Auction Services by 11.1% during the third quarter. Schroder Investment Management Group now owns 3,033,008 shares of the specialty retailer’s stock valued at $142,612,000 after buying an additional 302,029 shares during the last quarter. Frontier Capital Management Co. LLC boosted its stake in KAR Auction Services by 3.0% during the fourth quarter. Frontier Capital Management Co. LLC now owns 2,641,292 shares of the specialty retailer’s stock valued at $133,412,000 after buying an additional 76,299 shares during the last quarter. Finally, Wells Fargo & Company MN boosted its stake in KAR Auction Services by 0.9% during the fourth quarter. Wells Fargo & Company MN now owns 2,579,446 shares of the specialty retailer’s stock valued at $130,288,000 after buying an additional 23,454 shares during the last quarter. 98.88% of the stock is owned by hedge funds and other institutional investors.
In other news, COO Donald S. Gottwald sold 10,000 shares of the company’s stock in a transaction dated Tuesday, March 6th. The stock was sold at an average price of $54.96, for a total value of $549,600.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Rebecca C. Polak sold 44,000 shares of the company’s stock in a transaction dated Tuesday, March 13th. The stock was sold at an average price of $56.20, for a total value of $2,472,800.00. Following the completion of the transaction, the insider now directly owns 90,390 shares of the company’s stock, valued at approximately $5,079,918. The disclosure for this sale can be found here. In the last ninety days, insiders sold 62,751 shares of company stock valued at $3,495,282. Corporate insiders own 1.30% of the company’s stock.
The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 4th. Stockholders of record on Thursday, March 22nd will be paid a $0.35 dividend. This represents a $1.40 dividend on an annualized basis and a dividend yield of 2.51%. The ex-dividend date of this dividend is Wednesday, March 21st. KAR Auction Services’s dividend payout ratio (DPR) is 53.03%.
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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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