Burgundy Asset Management Ltd. Acquires 647,164 Shares of OPENLANE, Inc. $KAR

Key Points

• Burgundy Asset Management Ltd. increased its stake in OPENLANE, Inc. by 7.0% during the first quarter, owning about 9.24% of the company's shares, which is valued at approximately $191.37 million.
• Research firms have raised their target prices for OPENLANE, with Barrington Research increasing its target from $25.00 to $30.00, indicating an "outperform" rating.
• OPENLANE reported an earnings per share (EPS) of $0.33 for the most recent quarter, surpassing estimates of $0.24, and experienced an 11.6% year-over-year revenue growth.

Burgundy Asset Management Ltd. raised its stake in OPENLANE, Inc. (NYSE:KAR - Free Report) by 7.0% in the 1st quarter, according to its most recent disclosure with the SEC. The fund owned 9,925,661 shares of the specialty retailer's stock after purchasing an additional 647,164 shares during the quarter. OPENLANE accounts for 2.0% of Burgundy Asset Management Ltd.'s portfolio, making the stock its 13th biggest position. Burgundy Asset Management Ltd. owned 9.24% of OPENLANE worth $191,367,000 as of its most recent filing with the SEC.

Several other hedge funds and other institutional investors have also recently bought and sold shares of KAR. Nisa Investment Advisors LLC grew its stake in OPENLANE by 19.8% in the first quarter. Nisa Investment Advisors LLC now owns 3,575 shares of the specialty retailer's stock worth $69,000 after purchasing an additional 590 shares during the period. Kathmere Capital Management LLC grew its stake in OPENLANE by 2.6% in the first quarter. Kathmere Capital Management LLC now owns 39,400 shares of the specialty retailer's stock worth $760,000 after purchasing an additional 1,000 shares during the period. CWM LLC grew its stake in OPENLANE by 34.5% in the first quarter. CWM LLC now owns 4,198 shares of the specialty retailer's stock worth $81,000 after purchasing an additional 1,077 shares during the period. Bank of Montreal Can grew its stake in OPENLANE by 9.6% in the fourth quarter. Bank of Montreal Can now owns 13,268 shares of the specialty retailer's stock worth $263,000 after purchasing an additional 1,161 shares during the period. Finally, Two Sigma Investments LP grew its stake in OPENLANE by 1.1% in the fourth quarter. Two Sigma Investments LP now owns 126,451 shares of the specialty retailer's stock worth $2,509,000 after purchasing an additional 1,339 shares during the period. Institutional investors own 99.76% of the company's stock.

Wall Street Analyst Weigh In

KAR has been the topic of a number of recent research reports. JPMorgan Chase & Co. increased their target price on OPENLANE from $22.00 to $25.00 and gave the stock a "neutral" rating in a research note on Thursday, August 7th. Barrington Research increased their target price on OPENLANE from $25.00 to $30.00 and gave the stock an "outperform" rating in a research note on Wednesday, August 6th. Bank of America increased their target price on OPENLANE from $22.00 to $25.00 and gave the stock a "neutral" rating in a research note on Monday, June 16th. Finally, Wall Street Zen raised OPENLANE from a "hold" rating to a "buy" rating in a research note on Friday, May 9th. Two equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $26.50.

Insider Activity

In related news, EVP James P. Coyle sold 194,575 shares of OPENLANE stock in a transaction that occurred on Thursday, August 7th. The stock was sold at an average price of $27.94, for a total transaction of $5,436,425.50. Following the sale, the executive vice president owned 36,851 shares of the company's stock, valued at approximately $1,029,616.94. This trade represents a 84.08% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Charles S. Coleman sold 59,289 shares of OPENLANE stock in a transaction that occurred on Thursday, August 7th. The shares were sold at an average price of $27.97, for a total value of $1,658,313.33. Following the sale, the executive vice president directly owned 53,474 shares in the company, valued at $1,495,667.78. This trade represents a 52.58% decrease in their position. The disclosure for this sale can be found here. 1.51% of the stock is owned by company insiders.

OPENLANE Stock Up 3.1%

NYSE:KAR traded up $0.8650 on Friday, hitting $29.0450. The stock had a trading volume of 270,215 shares, compared to its average volume of 837,572. The stock has a market cap of $3.09 billion, a price-to-earnings ratio of 39.26, a price-to-earnings-growth ratio of 2.68 and a beta of 1.40. The business's 50-day simple moving average is $25.31 and its two-hundred day simple moving average is $22.29. OPENLANE, Inc. has a 52-week low of $15.44 and a 52-week high of $29.13.

OPENLANE (NYSE:KAR - Get Free Report) last announced its earnings results on Wednesday, August 6th. The specialty retailer reported $0.33 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.24 by $0.09. OPENLANE had a return on equity of 11.65% and a net margin of 8.18%.The business had revenue of $481.70 million for the quarter, compared to analysts' expectations of $453.26 million. During the same period last year, the firm posted $0.19 earnings per share. The business's revenue for the quarter was up 11.6% on a year-over-year basis. As a group, equities research analysts anticipate that OPENLANE, Inc. will post 0.95 EPS for the current year.

About OPENLANE

OPENLANE, Inc, together with its subsidiaries, operates as a digital marketplace for used vehicles, which connects sellers and buyers in North America, Europe, the Philippines, and Uruguay. The company operates through two segments, Marketplace and Finance. The Marketplace segment offers digital marketplace services for buying and selling used vehicles.