OPENLANE (NYSE:KAR) Sets New 1-Year High - Still a Buy?

Key Points

• OPENLANE, Inc. (NYSE:KAR) reached a new 52-week high of $29.44 amid positive trading activity, with a volume of over 330,000 shares.
• Brokerage upgrades have increased target prices for OPENLANE, with Barrington Research raising their target from $25.00 to $30.00 and maintaining an "outperform" rating.
• During the latest quarter, OPENLANE reported earnings of $0.33 per share, surpassing estimates and reflecting an 11.6% revenue growth compared to the previous year.

OPENLANE, Inc. (NYSE:KAR - Get Free Report) hit a new 52-week high during mid-day trading on Tuesday . The company traded as high as $29.43 and last traded at $29.44, with a volume of 330767 shares changing hands. The stock had previously closed at $29.21.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on KAR. JPMorgan Chase & Co. boosted their target price on OPENLANE from $22.00 to $25.00 and gave the company a "neutral" rating in a research report on Thursday, August 7th. Barrington Research increased their target price on OPENLANE from $25.00 to $30.00 and gave the company an "outperform" rating in a report on Wednesday, August 6th. Finally, Bank of America increased their target price on OPENLANE from $22.00 to $25.00 and gave the company a "neutral" rating in a report on Monday, June 16th. Two equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, OPENLANE currently has an average rating of "Moderate Buy" and an average price target of $26.50.

OPENLANE Price Performance

The firm has a market cap of $3.14 billion, a price-to-earnings ratio of 39.96, a P/E/G ratio of 3.00 and a beta of 1.38. The firm's 50 day moving average price is $26.78 and its two-hundred day moving average price is $23.02.

OPENLANE (NYSE:KAR - Get Free Report) last announced its quarterly earnings data on Wednesday, August 6th. The specialty retailer reported $0.33 EPS for the quarter, beating analysts' consensus estimates of $0.24 by $0.09. The firm had revenue of $481.70 million during the quarter, compared to the consensus estimate of $453.26 million. OPENLANE had a net margin of 8.18% and a return on equity of 11.65%. The firm's revenue was up 11.6% compared to the same quarter last year. During the same quarter last year, the firm earned $0.19 earnings per share. On average, analysts anticipate that OPENLANE, Inc. will post 0.95 earnings per share for the current year.

Insider Buying and Selling

In other news, EVP James P. Coyle sold 194,575 shares of the firm's stock in a transaction that occurred on Thursday, August 7th. The shares were sold at an average price of $27.94, for a total transaction of $5,436,425.50. Following the completion of the transaction, the executive vice president directly owned 36,851 shares of the company's stock, valued at $1,029,616.94. This trade represents a 84.08% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Charles S. Coleman sold 59,289 shares of OPENLANE stock in a transaction that occurred on Thursday, August 7th. The stock was sold at an average price of $27.97, for a total transaction of $1,658,313.33. Following the completion of the sale, the executive vice president directly owned 53,474 shares of the company's stock, valued at $1,495,667.78. The trade was a 52.58% decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 2.32% of the company's stock.

Institutional Trading of OPENLANE

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Principal Financial Group Inc. boosted its holdings in shares of OPENLANE by 2.7% in the 1st quarter. Principal Financial Group Inc. now owns 531,985 shares of the specialty retailer's stock valued at $10,257,000 after purchasing an additional 13,817 shares during the last quarter. GSA Capital Partners LLP acquired a new position in shares of OPENLANE in the 1st quarter valued at $1,331,000. Neo Ivy Capital Management acquired a new position in shares of OPENLANE in the 1st quarter valued at $936,000. Informed Momentum Co LLC acquired a new position in shares of OPENLANE in the 1st quarter valued at $2,856,000. Finally, Mackenzie Financial Corp acquired a new position in shares of OPENLANE in the 1st quarter valued at $1,242,000. 99.76% of the stock is owned by hedge funds and other institutional investors.

OPENLANE Company Profile

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.

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