Zacks Investment Research upgraded shares of KAR Auction Services (NYSE:KAR) from a sell rating to a hold rating in a report released on Tuesday morning, 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. “

Other research analysts have also recently issued research reports about the company. Barrington Research reiterated a buy rating on shares of KAR Auction Services in a report on Wednesday, February 20th. Robert W. Baird reiterated a buy rating and issued a $56.00 target price on shares of KAR Auction Services in a report on Wednesday, February 20th. Finally, ValuEngine upgraded KAR Auction Services from a hold rating to a buy rating in a report on Friday, June 7th. Three research analysts have rated the stock with a hold rating and four have given a buy rating to the company’s stock. The stock presently has a consensus rating of Buy and a consensus price target of $61.50.

Shares of NYSE:KAR opened at $60.09 on Tuesday. The firm has a market capitalization of $8.02 billion, a PE ratio of 20.30, a price-to-earnings-growth ratio of 2.13 and a beta of 1.06. 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 has a 52 week low of $43.32 and a 52 week high of $64.55.

KAR Auction Services (NYSE:KAR) last announced its quarterly earnings data on Tuesday, May 7th. The specialty retailer reported $0.70 EPS for the quarter, missing the Zacks’ consensus estimate of $0.77 by ($0.07). The business had revenue of $1.05 billion during the quarter, compared to analysts’ expectations of $1.01 billion. KAR Auction Services had a net margin of 8.17% and a return on equity of 25.43%. KAR Auction Services’s revenue for the quarter was up 10.1% on a year-over-year basis. During the same period in the prior year, the firm earned $0.82 EPS. On average, research analysts anticipate that KAR Auction Services will post 2.93 earnings per share for the current fiscal year.

The company also recently announced a quarterly dividend, which will be paid on Monday, June 17th. Investors of record on Monday, June 3rd will be issued a $0.35 dividend. This represents a $1.40 dividend on an annualized basis and a yield of 2.33%. The ex-dividend date is Friday, May 31st. KAR Auction Services’s payout ratio is currently 47.30%.

A number of institutional investors have recently modified their holdings of KAR. Motco boosted its holdings in KAR Auction Services by 1,732.4% in the first quarter. Motco now owns 623 shares of the specialty retailer’s stock valued at $32,000 after acquiring an additional 589 shares during the last quarter. Riverview Trust Co acquired a new position in KAR Auction Services in the fourth quarter valued at $33,000. Arlington Partners LLC boosted its holdings in KAR Auction Services by 70.0% in the first quarter. Arlington Partners LLC now owns 850 shares of the specialty retailer’s stock valued at $44,000 after acquiring an additional 350 shares during the last quarter. Cornerstone Advisors Inc. acquired a new position in shares of KAR Auction Services during the first quarter worth about $46,000. Finally, FTB Advisors Inc. lifted its stake in shares of KAR Auction Services by 75.9% during the first quarter. FTB Advisors Inc. now owns 1,038 shares of the specialty retailer’s stock worth $53,000 after purchasing an additional 448 shares in the last quarter. Hedge funds and other institutional investors own 99.47% of the company’s stock.

KAR Auction Services Company Profile

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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