KAR Auction Services (NYSE:KAR) Rating Lowered to Hold at Zacks Investment Research

KAR Auction Services (NYSE:KAR) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a note issued to investors on Friday, 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. CJS Securities downgraded shares of KAR Auction Services from an “outperform” rating to a “market perform” rating in a research report on Thursday. ValuEngine raised shares of KAR Auction Services from a “sell” rating to a “hold” rating in a research report on Wednesday, October 2nd. One investment analyst has rated the stock with a sell rating, four have issued a hold rating and three have given a buy rating to the stock. The company presently has an average rating of “Hold” and a consensus target price of $33.58.

NYSE KAR traded down $0.17 during trading on Friday, reaching $21.50. 2,504,173 shares of the company’s stock traded hands, compared to its average volume of 3,615,075. The company has a debt-to-equity ratio of 1.00, a current ratio of 1.14 and a quick ratio of 1.14. The firm has a market cap of $2.86 billion, a price-to-earnings ratio of 7.26, a price-to-earnings-growth ratio of 1.43 and a beta of 1.06. The company’s 50 day simple moving average is $24.56 and its two-hundred day simple moving average is $36.11. KAR Auction Services has a 12-month low of $16.41 and a 12-month high of $28.61.

KAR Auction Services (NYSE:KAR) last posted its earnings results on Tuesday, November 5th. The specialty retailer reported $0.35 EPS for the quarter, missing analysts’ consensus estimates of $0.39 by ($0.04). The business had revenue of $701.90 million for the quarter, compared to analysts’ expectations of $697.46 million. KAR Auction Services had a net margin of 6.95% and a return on equity of 16.83%. The company’s revenue for the quarter was up 14.6% on a year-over-year basis. During the same period last year, the business posted $0.70 EPS. Research analysts expect that KAR Auction Services will post 1.16 earnings per share for the current fiscal year.

Several institutional investors have recently modified their holdings of the company. Arlington Partners LLC boosted its stake in KAR Auction Services by 64.7% in the 3rd quarter. Arlington Partners LLC now owns 1,400 shares of the specialty retailer’s stock worth $34,000 after purchasing an additional 550 shares in the last quarter. Parkside Financial Bank & Trust lifted its stake in KAR Auction Services by 78.8% during the 3rd quarter. Parkside Financial Bank & Trust now owns 1,450 shares of the specialty retailer’s stock valued at $36,000 after acquiring an additional 639 shares during the period. Captrust Financial Advisors acquired a new stake in KAR Auction Services during the 2nd quarter valued at approximately $42,000. Crewe Advisors LLC lifted its stake in KAR Auction Services by 114.9% during the 3rd quarter. Crewe Advisors LLC now owns 1,870 shares of the specialty retailer’s stock valued at $46,000 after acquiring an additional 1,000 shares during the period. Finally, San Francisco Sentry Investment Group CA lifted its stake in KAR Auction Services by 30.6% during the 3rd quarter. San Francisco Sentry Investment Group CA now owns 4,668 shares of the specialty retailer’s stock valued at $114,000 after acquiring an additional 1,095 shares during the period. 99.42% of the stock is currently 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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