Brokerages forecast that KAR Auction Services Inc (NYSE:KAR) will post $930.89 million in sales for the current fiscal quarter, according to Zacks Investment Research. Four analysts have made estimates for KAR Auction Services’ earnings, with estimates ranging from $923.64 million to $942.70 million. KAR Auction Services posted sales of $866.60 million during the same quarter last year, which suggests a positive year over year growth rate of 7.4%. The company is expected to report its next earnings report on Tuesday, May 8th.
On average, analysts expect that KAR Auction Services will report full-year sales of $930.89 million for the current financial year, with estimates ranging from $3.65 billion to $3.74 billion. For the next fiscal year, analysts expect that the firm will report sales of $3.93 billion per share, with estimates ranging from $3.85 billion to $4.03 billion. Zacks’ sales calculations are a mean average based on a survey of analysts that that provide coverage for KAR Auction Services.
KAR Auction Services (NYSE:KAR) last posted its earnings results on Tuesday, February 20th. The specialty retailer reported $0.63 earnings per share for the quarter, topping analysts’ consensus estimates of $0.53 by $0.10. The firm had revenue of $890.40 million for the quarter, compared to analysts’ expectations 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% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.45 earnings per share.
A number of brokerages have recently commented on KAR. SunTrust Banks began coverage on shares of KAR Auction Services in a report on Thursday, March 22nd. They set a “buy” rating and a $65.00 price target on the stock. Barrington Research reiterated a “buy” rating on shares of KAR Auction Services in a report on Wednesday, March 21st. JPMorgan Chase lifted their price target on shares of KAR Auction Services from $62.00 to $63.00 and gave the stock an “overweight” rating in a report on Monday, March 19th. Zacks Investment Research upgraded shares of KAR Auction Services from a “hold” rating to a “buy” rating and set a $61.00 price target on the stock in a report on Tuesday, March 6th. Finally, Bank of America lifted their price target 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. Two equities research analysts have rated the stock with a hold rating and eight have issued a buy rating to the company’s stock. The stock presently has an average rating of “Buy” and a consensus target price of $58.89.
Shares of NYSE KAR traded up $0.73 during midday trading on Tuesday, reaching $54.42. 951,925 shares of the company were exchanged, compared to its average volume of 990,867. The stock has a market cap of $7,204.32, a PE ratio of 21.48, a PEG ratio of 1.64 and a beta of 1.10. KAR Auction Services has a one year low of $40.27 and a one year high of $56.75. 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 firm also recently declared a quarterly dividend, which was paid on Wednesday, April 4th. Stockholders of record on Thursday, March 22nd were issued a dividend of $0.35 per share. The ex-dividend date of this dividend was Wednesday, March 21st. This represents a $1.40 dividend on an annualized basis and a dividend yield of 2.57%. KAR Auction Services’s dividend payout ratio (DPR) is presently 56.00%.
In related news, insider Rebecca C. Polak sold 44,000 shares of the business’s stock in a transaction on Tuesday, March 13th. The shares were sold at an average price of $56.20, for a total value of $2,472,800.00. Following the transaction, the insider now owns 90,390 shares in the company, valued at $5,079,918. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, EVP Lisa A. Price sold 6,563 shares of the business’s stock in a transaction on Friday, January 19th. The shares were sold at an average price of $54.05, for a total transaction of $354,730.15. The disclosure for this sale can be found here. In the last 90 days, insiders sold 62,751 shares of company stock worth $3,495,282. 1.30% of the stock is owned by company insiders.
A number of hedge funds have recently added to or reduced their stakes in KAR. Millennium Management LLC lifted its holdings in KAR Auction Services by 157.0% in the fourth quarter. Millennium Management LLC now owns 1,391,785 shares of the specialty retailer’s stock valued at $70,299,000 after buying an additional 850,204 shares during the period. BlackRock Inc. lifted its holdings in KAR Auction Services by 13.3% in the fourth quarter. BlackRock Inc. now owns 7,018,588 shares of the specialty retailer’s stock valued at $354,508,000 after buying an additional 825,974 shares during the period. Goldman Sachs Group Inc. lifted its holdings in KAR Auction Services by 84.7% in the fourth quarter. Goldman Sachs Group Inc. now owns 1,631,960 shares of the specialty retailer’s stock valued at $82,430,000 after buying an additional 748,589 shares during the period. Gates Capital Management Inc. lifted its holdings in KAR Auction Services by 75.2% in the fourth quarter. Gates Capital Management Inc. now owns 1,501,057 shares of the specialty retailer’s stock valued at $75,818,000 after buying an additional 644,093 shares during the period. Finally, Mawer Investment Management Ltd. lifted its holdings in KAR Auction Services by 72.1% in the fourth quarter. Mawer Investment Management Ltd. now owns 920,010 shares of the specialty retailer’s stock valued at $46,470,000 after buying an additional 385,540 shares during the period. Institutional investors and hedge funds own 98.88% of the company’s stock.
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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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