KAR Auction Services Inc (NYSE:KAR) announced a quarterly dividend on Wednesday, August 8th, Wall Street Journal reports. Shareholders of record on Thursday, September 20th will be paid a dividend of 0.35 per share by the specialty retailer on Wednesday, October 3rd. This represents a $1.40 annualized dividend and a yield of 2.44%. The ex-dividend date is Wednesday, September 19th.
KAR Auction Services has raised its dividend by an average of 8.6% annually over the last three years and has raised its dividend every year for the last 5 years. KAR Auction Services has a payout ratio of 46.7% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect KAR Auction Services to earn $3.32 per share next year, which means the company should continue to be able to cover its $1.40 annual dividend with an expected future payout ratio of 42.2%.
Shares of KAR traded down $0.17 during trading hours on Friday, hitting $57.35. The stock had a trading volume of 520,694 shares, compared to its average volume of 895,909. The company has a debt-to-equity ratio of 1.76, a quick ratio of 1.31 and a current ratio of 1.31. KAR Auction Services has a 52 week low of $46.50 and a 52 week high of $64.55. The firm has a market cap of $8.02 billion, a price-to-earnings ratio of 22.94, a PEG ratio of 1.79 and a beta of 1.13.
KAR Auction Services (NYSE:KAR) last posted its earnings results on Tuesday, August 7th. The specialty retailer reported $0.82 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.80 by $0.02. KAR Auction Services had a net margin of 11.50% and a return on equity of 26.15%. The business had revenue of $956.60 million for the quarter, compared to analyst estimates of $923.01 million. As a group, sell-side analysts anticipate that KAR Auction Services will post 3 EPS for the current fiscal year.
In other KAR Auction Services news, EVP Lisa A. Price sold 8,749 shares of the stock in a transaction dated Monday, July 16th. The shares were sold at an average price of $60.01, for a total transaction of $525,027.49. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, COO Donald S. Gottwald sold 10,000 shares of the stock in a transaction dated Wednesday, September 12th. The stock was sold at an average price of $62.98, for a total transaction of $629,800.00. The disclosure for this sale can be found here. In the last three months, insiders have sold 340,749 shares of company stock worth $21,061,615. Insiders own 1.29% of the company’s stock.
Several equities research analysts have recently weighed in on KAR shares. SunTrust Banks set a $70.00 target price on shares of KAR Auction Services and gave the stock a “buy” rating in a report on Thursday, August 9th. Zacks Investment Research raised shares of KAR Auction Services from a “hold” rating to a “buy” rating and set a $67.00 target price on the stock in a report on Tuesday, August 7th. Barrington Research reaffirmed a “buy” rating on shares of KAR Auction Services in a report on Monday, August 6th. ValuEngine raised shares of KAR Auction Services from a “hold” rating to a “buy” rating in a report on Thursday, July 5th. Finally, Stephens reaffirmed a “hold” rating and issued a $60.00 target price on shares of KAR Auction Services in a report on Thursday, August 9th. Five research analysts have rated the stock with a hold rating and five have given a buy rating to the company’s stock. The stock presently has an average rating of “Buy” and an average price target of $62.25.
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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