KAR Auction Services Inc (NYSE:KAR) issued its quarterly earnings results on Tuesday. The specialty retailer reported $0.62 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.58 by $0.04. The company had revenue of $866.60 million for the quarter, compared to the consensus estimate of $848.73 million. KAR Auction Services had a return on equity of 19.45% and a net margin of 7.58%. The company’s revenue for the quarter was up 14.3% on a year-over-year basis. During the same period in the previous year, the business posted $0.55 EPS. KAR Auction Services updated its FY17 guidance to $2.15-2.25 EPS.
The company also recently disclosed a quarterly dividend, which will be paid on Thursday, July 6th. Stockholders of record on Wednesday, June 21st will be issued a dividend of $0.32 per share. This represents a $1.28 annualized dividend and a dividend yield of 3.00%. The ex-dividend date of this dividend is Monday, June 19th. KAR Auction Services’s payout ratio is presently 79.01%.
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Several research analysts have commented on the company. Gabelli assumed coverage on KAR Auction Services in a research report on Friday, April 7th. They issued a “buy” rating on the stock. Zacks Investment Research downgraded KAR Auction Services from a “hold” rating to a “sell” rating in a research report on Friday, March 10th. Finally, Wolfe Research assumed coverage on KAR Auction Services in a report on Thursday, March 2nd. They set an “outperform” rating on the stock. Two equities research analysts have rated the stock with a hold rating and seven have issued a buy rating to the company. The company currently has an average rating of “Buy” and a consensus price target of $49.00.
In other KAR Auction Services news, Director Mark E. Hill bought 4,200 shares of the stock in a transaction on Monday, February 27th. The shares were acquired at an average price of $44.87 per share, with a total value of $188,454.00. Following the acquisition, the director now directly owns 29,700 shares of the company’s stock, valued at approximately $1,332,639. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, COO Donald S. Gottwald sold 18,125 shares of the business’s stock in a transaction on Wednesday, May 10th. The shares were sold at an average price of $44.29, for a total transaction of $802,756.25. The disclosure for this sale can be found here. Insiders sold a total of 78,024 shares of company stock worth $3,453,833 in the last ninety days. 1.30% of the stock is currently owned by insiders.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. boosted its position in KAR Auction Services by 20,047.2% in the first quarter. BlackRock Inc. now owns 5,618,436 shares of the specialty retailer’s stock valued at $245,357,000 after buying an additional 5,590,549 shares during the last quarter. FMR LLC boosted its position in KAR Auction Services by 13.2% in the fourth quarter. FMR LLC now owns 14,655,022 shares of the specialty retailer’s stock valued at $624,597,000 after buying an additional 1,706,490 shares during the last quarter. MARSHALL WACE ASIA Ltd purchased a new position in KAR Auction Services during the first quarter valued at $71,664,000. Marshall Wace North America L.P. purchased a new position in KAR Auction Services during the first quarter valued at $71,664,000. Finally, Marshall Wace LLP boosted its position in KAR Auction Services by 163.5% in the fourth quarter. Marshall Wace LLP now owns 1,895,389 shares of the specialty retailer’s stock valued at $80,782,000 after buying an additional 1,176,124 shares during the last quarter.
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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