KAR Auction Services (NYSE:KAR) Lowered to Sell at ValuEngine

ValuEngine downgraded shares of KAR Auction Services (NYSE:KAR) from a hold rating to a sell rating in a research note issued to investors on Thursday morning, ValuEngine reports.

KAR has been the subject of several other reports. Barrington Research reaffirmed a buy rating and issued a $42.50 price objective on shares of KAR Auction Services in a report on Friday, June 28th. JPMorgan Chase & Co. downgraded shares of KAR Auction Services from an overweight rating to a neutral rating and set a $25.00 price objective for the company. in a report on Monday, July 1st. Guggenheim downgraded shares of KAR Auction Services from a neutral rating to a sell rating and set a $20.00 price objective for the company. in a report on Tuesday, July 2nd. SunTrust Banks cut their price objective on shares of KAR Auction Services from $65.00 to $30.00 and set a buy rating for the company in a report on Monday, July 1st. Finally, Zacks Investment Research raised shares of KAR Auction Services from a sell rating to a hold rating in a report on Wednesday, July 3rd. Two analysts have rated the stock with a sell rating, four have assigned a hold rating and three have given a buy rating to the stock. KAR Auction Services has a consensus rating of Hold and an average price target of $42.50.

Shares of KAR Auction Services stock traded down $0.49 on Thursday, reaching $24.63. 3,181,057 shares of the company traded hands, compared to its average volume of 3,944,973. KAR Auction Services has a 52 week low of $16.41 and a 52 week high of $27.15. The business has a 50 day moving average of $31.38. The stock has a market cap of $3.47 billion, a price-to-earnings ratio of 8.32, a PEG ratio of 1.35 and a beta of 1.08. 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 released its earnings results on Tuesday, August 6th. The specialty retailer reported $0.30 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.40 by ($0.10). KAR Auction Services had a net margin of 7.67% and a return on equity of 20.73%. The company had revenue of $719.00 million for the quarter, compared to the consensus estimate of $692.00 million. During the same period in the prior year, the company earned $0.82 earnings per share. The firm’s revenue was up 15.4% on a year-over-year basis. Equities research analysts predict that KAR Auction Services will post 1.27 EPS for the current year.

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 3rd. Shareholders of record on Friday, September 20th will be issued a $0.19 dividend. This represents a $0.76 annualized dividend and a yield of 3.09%. The ex-dividend date is Thursday, September 19th. KAR Auction Services’s payout ratio is 47.30%.

Large investors have recently made changes to their positions in the business. Motco boosted its holdings in KAR Auction Services by 1,732.4% in the 1st quarter. Motco now owns 623 shares of the specialty retailer’s stock valued at $32,000 after purchasing an additional 589 shares during the period. Cornerstone Advisors Inc. bought a new position in KAR Auction Services in the 1st quarter valued at $46,000. FTB Advisors Inc. boosted its holdings in KAR Auction Services by 75.9% in the 1st quarter. FTB Advisors Inc. now owns 1,038 shares of the specialty retailer’s stock valued at $53,000 after purchasing an additional 448 shares during the period. Icon Wealth Partners LLC bought a new position in KAR Auction Services in the 1st quarter valued at $57,000. Finally, Quadrant Capital Group LLC boosted its holdings in KAR Auction Services by 2,902.5% in the 1st quarter. Quadrant Capital Group LLC now owns 1,201 shares of the specialty retailer’s stock valued at $61,000 after purchasing an additional 1,161 shares during the period. 99.67% of the stock is owned by hedge funds and other institutional investors.

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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Analyst Recommendations for KAR Auction Services (NYSE:KAR)

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