KAR Auction Services Inc (NYSE:KAR) was the target of a significant drop in short interest in the month of July. As of July 31st, there was short interest totalling 8,457,900 shares, a drop of 17.4% from the June 30th total of 10,242,000 shares. Approximately 6.4% of the shares of the stock are short sold. Based on an average daily volume of 2,340,000 shares, the days-to-cover ratio is presently 3.6 days.

KAR traded down $0.40 on Thursday, reaching $24.89. 2,928,000 shares of the company’s stock were exchanged, compared to its average volume of 3,923,888. The stock has a market cap of $3.33 billion, a PE ratio of 8.41, a P/E/G ratio of 1.34 and a beta of 1.08. KAR Auction Services has a twelve month low of $16.41 and a twelve month high of $27.15. The stock’s fifty day moving average price is $26.13 and its 200-day moving average price is $46.86. The company has a debt-to-equity ratio of 1.00, a current ratio of 1.14 and a quick ratio of 1.14.

KAR Auction Services (NYSE:KAR) last posted its quarterly earnings results on Tuesday, August 6th. The specialty retailer reported $0.30 earnings per share for the quarter, missing analysts’ consensus estimates of $0.40 by ($0.10). The business had revenue of $719.00 million for the quarter, compared to analyst estimates of $692.00 million. KAR Auction Services had a return on equity of 19.93% and a net margin of 7.67%. The business’s revenue was up 15.4% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.82 earnings per share. As a group, research analysts predict that KAR Auction Services will post 1.24 earnings per share for the current fiscal year.

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 3rd. Investors of record on Friday, September 20th will be given a dividend of $0.19 per share. The ex-dividend date of this dividend is Thursday, September 19th. This represents a $0.76 dividend on an annualized basis and a yield of 3.05%. KAR Auction Services’s payout ratio is presently 47.30%.

KAR has been the topic of several research analyst reports. ValuEngine lowered shares of KAR Auction Services from a “hold” rating to a “sell” rating in a research report on Thursday, August 8th. Robert W. Baird initiated coverage on shares of KAR Auction Services in a research report on Friday, June 28th. They issued an “outperform” rating on the stock. JPMorgan Chase & Co. lowered shares of KAR Auction Services from an “overweight” rating to a “neutral” rating and set a $25.00 target price on the stock. in a research report on Monday, July 1st. Zacks Investment Research upgraded shares of KAR Auction Services from a “sell” rating to a “hold” rating in a research report on Wednesday, July 3rd. Finally, SunTrust Banks dropped their target price on shares of KAR Auction Services from $65.00 to $30.00 and set a “buy” rating on the stock in a research report on Monday, July 1st. Two equities research analysts have rated the stock with a sell rating, two have assigned a hold rating and three have assigned a buy rating to the stock. The company has an average rating of “Hold” and a consensus price target of $39.58.

Institutional investors and hedge funds have recently bought and sold shares of the stock. Cambridge Investment Research Advisors Inc. boosted its position in KAR Auction Services by 7.9% during the first quarter. Cambridge Investment Research Advisors Inc. now owns 8,065 shares of the specialty retailer’s stock worth $414,000 after acquiring an additional 588 shares during the last quarter. Clear Street Markets LLC acquired a new position in KAR Auction Services during the second quarter worth about $1,366,000. Boston Financial Mangement LLC boosted its position in KAR Auction Services by 0.8% during the second quarter. Boston Financial Mangement LLC now owns 484,611 shares of the specialty retailer’s stock worth $12,115,000 after acquiring an additional 4,043 shares during the last quarter. Baskin Financial Services Inc. purchased a new position in KAR Auction Services during the second quarter worth about $260,000. Finally, Cornerstone Advisors Inc. purchased a new position in KAR Auction Services during the first quarter worth about $46,000.

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.

See Also: Short Selling

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