KAR Auction Services (NYSE:KAR) Upgraded to “Hold” at Zacks Investment Research

KAR Auction Services (NYSE:KARGet Rating) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report issued on Wednesday, 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. “

A number of other brokerages also recently issued reports on KAR. StockNews.com downgraded shares of KAR Auction Services from a “hold” rating to a “sell” rating in a report on Friday, May 6th. TheStreet downgraded shares of KAR Auction Services from a “c” rating to a “d+” rating in a research note on Wednesday, May 4th. CJS Securities raised shares of KAR Auction Services from a “market perform” rating to an “outperform” rating and set a $20.00 target price on the stock in a research note on Wednesday, May 4th. Robert W. Baird lowered their target price on shares of KAR Auction Services from $25.00 to $22.00 in a research note on Thursday, May 5th. Finally, Northcoast Research downgraded shares of KAR Auction Services from a “buy” rating to a “neutral” rating and set a $20.00 target price on the stock. in a research note on Monday, February 28th. One equities research analyst has rated the stock with a sell rating, three have assigned a hold rating and three have issued a buy rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $21.83.

Shares of KAR Auction Services stock opened at $15.14 on Wednesday. KAR Auction Services has a 12-month low of $11.76 and a 12-month high of $22.10. The company has a market cap of $1.84 billion, a price-to-earnings ratio of -94.63, a PEG ratio of 0.77 and a beta of 1.34. The company has a current ratio of 1.21, a quick ratio of 1.21 and a debt-to-equity ratio of 0.62. The company’s 50-day moving average price is $16.72 and its 200-day moving average price is $15.78.

KAR Auction Services (NYSE:KARGet Rating) last announced its quarterly earnings results on Tuesday, May 3rd. The specialty retailer reported ($0.02) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.13 by ($0.15). KAR Auction Services had a return on equity of 3.35% and a net margin of 0.75%. The firm had revenue of $369.40 million during the quarter, compared to analysts’ expectations of $559.77 million. During the same period in the previous year, the company posted $0.45 earnings per share. The company’s quarterly revenue was down .1% compared to the same quarter last year. On average, sell-side analysts predict that KAR Auction Services will post 0.63 earnings per share for the current year.

In other KAR Auction Services news, Chairman James P. Hallett purchased 100,000 shares of KAR Auction Services stock in a transaction on Wednesday, May 11th. The shares were acquired at an average cost of $13.15 per share, for a total transaction of $1,315,000.00. Following the completion of the transaction, the chairman now directly owns 626,142 shares of the company’s stock, valued at $8,233,767.30. The purchase was disclosed in a filing with the SEC, which is available at this link. Also, CEO Peter J. Kelly purchased 45,958 shares of KAR Auction Services stock in a transaction on Wednesday, May 11th. The shares were acquired at an average price of $13.10 per share, for a total transaction of $602,049.80. Following the completion of the transaction, the chief executive officer now directly owns 274,978 shares of the company’s stock, valued at $3,602,211.80. The disclosure for this purchase can be found here. Insiders have acquired 161,258 shares of company stock worth $2,115,950 over the last quarter. Company insiders own 1.39% of the company’s stock.

Several institutional investors have recently modified their holdings of the company. Penn Capital Management Company LLC bought a new position in shares of KAR Auction Services in the first quarter worth approximately $984,000. Guggenheim Capital LLC bought a new position in shares of KAR Auction Services in the first quarter worth approximately $232,000. Zuckerman Investment Group LLC grew its holdings in shares of KAR Auction Services by 71.3% in the first quarter. Zuckerman Investment Group LLC now owns 1,664,223 shares of the specialty retailer’s stock worth $30,039,000 after purchasing an additional 692,819 shares during the last quarter. RBF Capital LLC grew its holdings in shares of KAR Auction Services by 34.4% in the first quarter. RBF Capital LLC now owns 369,388 shares of the specialty retailer’s stock worth $6,671,000 after purchasing an additional 94,450 shares during the last quarter. Finally, Alpha Square Group S LLC bought a new position in shares of KAR Auction Services in the first quarter worth approximately $304,000.

About KAR Auction Services (Get Rating)

KAR Auction Services, Inc, together with its subsidiaries, provides used vehicle auctions and related vehicle remarketing services for the automotive industry in the United States, Europe, Canada, Mexico, and the United Kingdom. The company operates through two segments, ADESA Auctions 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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