KAR Auction Services Inc (NYSE:KAR) announced a quarterly dividend on Tuesday, February 20th, RTT News reports. Shareholders of record on Thursday, March 22nd will be paid a dividend of 0.35 per share by the specialty retailer on Wednesday, April 4th. This represents a $1.40 annualized dividend and a yield of 2.51%. The ex-dividend date of this dividend is Wednesday, March 21st.
KAR Auction Services has increased its dividend payment by an average of 8.6% per year over the last three years and has increased its dividend annually for the last 5 consecutive years. KAR Auction Services has a payout ratio of 59.3% indicating that its dividend is sufficiently covered by earnings. Analysts expect KAR Auction Services to earn $3.30 per share next year, which means the company should continue to be able to cover its $1.40 annual dividend with an expected future payout ratio of 42.4%.
Shares of KAR Auction Services (NYSE:KAR) traded down $0.16 during mid-day trading on Wednesday, reaching $55.75. 2,305,343 shares of the company’s stock traded hands, compared to its average volume of 1,031,833. The company has a quick ratio of 1.31, a current ratio of 1.31 and a debt-to-equity ratio of 1.80. KAR Auction Services has a 12-month low of $40.27 and a 12-month high of $56.75. The firm has a market cap of $7,543.03, a price-to-earnings ratio of 21.16, a P/E/G ratio of 1.72 and a beta of 1.08.
KAR Auction Services (NYSE:KAR) last issued its quarterly earnings results on Tuesday, February 20th. The specialty retailer reported $0.63 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.53 by $0.10. The firm had revenue of $890.40 million for the quarter, compared to analyst estimates of $882.22 million. KAR Auction Services had a net margin of 10.47% and a return on equity of 23.61%. The company’s revenue was up 9.4% compared to the same quarter last year. During the same period in the previous year, the business earned $0.45 EPS. equities analysts expect that KAR Auction Services will post 2.97 earnings per share for the current fiscal year.
Several analysts recently commented on the stock. Bank of America lifted their target price on shares of KAR Auction Services from $60.00 to $66.00 and gave the stock a “buy” rating in a report on Friday, March 2nd. Zacks Investment Research downgraded shares of KAR Auction Services from a “strong-buy” rating to a “hold” rating in a report on Saturday, March 3rd. Barrington Research set a $55.00 target price on shares of KAR Auction Services and gave the stock a “buy” rating in a report on Sunday, February 25th. Robert W. Baird reissued a “buy” rating and issued a $58.00 price objective on shares of KAR Auction Services in a report on Friday, February 23rd. Finally, Gabelli raised shares of KAR Auction Services from a “hold” rating to a “buy” rating in a report on Thursday, March 1st. Two analysts have rated the stock with a hold rating and seven have given a buy rating to the company’s stock. The stock presently has an average rating of “Buy” and an average price target of $57.13.
In other news, insider Rebecca C. Polak sold 44,000 shares of the company’s stock in a transaction that occurred on Tuesday, March 13th. The shares were sold at an average price of $56.20, for a total transaction of $2,472,800.00. Following the completion of the sale, the insider now owns 90,390 shares of the company’s stock, valued at approximately $5,079,918. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, COO Donald S. Gottwald sold 10,000 shares of the company’s stock in a transaction that occurred on Tuesday, March 6th. The stock was sold at an average price of $54.96, for a total transaction of $549,600.00. The disclosure for this sale can be found here. Insiders sold a total of 62,751 shares of company stock valued at $3,495,282 in the last three months. Insiders own 1.30% of the company’s stock.
An institutional investor recently raised its position in KAR Auction Services stock. The Manufacturers Life Insurance Company increased its stake in shares of KAR Auction Services Inc (NYSE:KAR) by 9.4% in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 4,210 shares of the specialty retailer’s stock after purchasing an additional 363 shares during the quarter. The Manufacturers Life Insurance Company ‘s holdings in KAR Auction Services were worth $177,000 at the end of the most recent reporting period. Hedge funds and other institutional investors own 98.88% of the company’s stock.
KAR Auction Services Company Profile
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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