KAR Auction Services Sees Unusually High Options Volume (KAR)

KAR Auction Services Inc (NYSE:KAR) was the recipient of unusually large options trading activity on Monday. Investors bought 12,284 put options on the company. This represents an increase of approximately 8,612% compared to the typical volume of 141 put options.

Hedge funds and other institutional investors have recently bought and sold shares of the company. Riverview Trust Co acquired a new stake in shares of KAR Auction Services during the fourth quarter worth approximately $33,000. Arlington Partners LLC increased its holdings in shares of KAR Auction Services by 70.0% during the first quarter. Arlington Partners LLC now owns 850 shares of the specialty retailer’s stock worth $44,000 after buying an additional 350 shares in the last quarter. Private Capital Group LLC increased its holdings in shares of KAR Auction Services by 32.8% during the fourth quarter. Private Capital Group LLC now owns 993 shares of the specialty retailer’s stock worth $48,000 after buying an additional 245 shares in the last quarter. Point72 Hong Kong Ltd acquired a new stake in shares of KAR Auction Services during the third quarter worth approximately $100,000. Finally, IFP Advisors Inc increased its holdings in shares of KAR Auction Services by 13.4% during the fourth quarter. IFP Advisors Inc now owns 1,683 shares of the specialty retailer’s stock worth $79,000 after buying an additional 199 shares in the last quarter.

Shares of KAR opened at $54.15 on Tuesday. The stock has a market cap of $7.14 billion, a price-to-earnings ratio of 18.29, a price-to-earnings-growth ratio of 1.71 and a beta of 1.11. The company has a debt-to-equity ratio of 1.81, a current ratio of 1.26 and a quick ratio of 1.26. KAR Auction Services has a 12 month low of $43.32 and a 12 month high of $64.55.

KAR Auction Services (NYSE:KAR) last posted its quarterly earnings data on Tuesday, February 19th. The specialty retailer reported $0.62 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.60 by $0.02. The company had revenue of $929.00 million during the quarter, compared to analyst estimates of $936.37 million. KAR Auction Services had a net margin of 8.70% and a return on equity of 26.46%. As a group, sell-side analysts anticipate that KAR Auction Services will post 2.98 earnings per share for the current fiscal year.

The company also recently disclosed a quarterly dividend, which was paid on Thursday, April 4th. Stockholders of record on Friday, March 22nd were issued a dividend of $0.35 per share. This represents a $1.40 annualized dividend and a dividend yield of 2.59%. The ex-dividend date of this dividend was Thursday, March 21st. KAR Auction Services’s payout ratio is 47.30%.

A number of research analysts have commented on KAR shares. Barrington Research restated a “buy” rating on shares of KAR Auction Services in a research note on Wednesday, February 20th. Zacks Investment Research upgraded shares of KAR Auction Services from a “sell” rating to a “hold” rating in a research note on Saturday, February 16th. Robert W. Baird restated a “buy” rating and set a $56.00 price target on shares of KAR Auction Services in a research note on Wednesday, February 20th. Finally, SunTrust Banks cut their price target on shares of KAR Auction Services to $65.00 and set a “buy” rating for the company in a research note on Monday, January 7th. Four equities research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. The stock currently has a consensus rating of “Buy” and an average price target of $63.00.

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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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