OPENLANE (NYSE:KAR) Sets New 12-Month High on Better-Than-Expected Earnings

Key Points

• OPENLANE's stock price reached a new 52-week high of $27.38 after reporting better-than-expected quarterly earnings of $0.33 EPS, exceeding forecasts by $0.10.
• The company's revenue increased by 11.6% compared to the same period last year, indicating strong business performance in the specialty retail sector.
• Institutional investors hold 99.76% of OPENLANE's stock, highlighting significant interest from large investment firms in the company.

Shares of OPENLANE, Inc. (NYSE:KAR - Get Free Report) hit a new 52-week high during mid-day trading on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $27.37 and last traded at $27.38, with a volume of 339841 shares. The stock had previously closed at $25.04.

The specialty retailer reported $0.33 EPS for the quarter, topping analysts' consensus estimates of $0.24 by $0.09. The company had revenue of $481.70 million for the quarter, compared to analyst estimates of $453.26 million. OPENLANE had a return on equity of 11.65% and a net margin of 8.18%. The firm's quarterly revenue was up 11.6% on a year-over-year basis. During the same period in the previous year, the firm earned $0.19 earnings per share.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on KAR shares. JPMorgan Chase & Co. lifted their target price on OPENLANE from $22.00 to $25.00 and gave the stock a "neutral" rating in a report on Thursday. Barrington Research lifted their target price on OPENLANE from $25.00 to $30.00 and gave the stock an "outperform" rating in a report on Wednesday. Wall Street Zen upgraded OPENLANE from a "hold" rating to a "buy" rating in a report on Friday, May 9th. Finally, Bank of America lifted their target price on OPENLANE from $22.00 to $25.00 and gave the stock a "neutral" rating in a report on Monday, June 16th. Two analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $26.50.

Insider Activity at OPENLANE

In other news, EVP Charles S. Coleman sold 59,289 shares of the business's 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 owned 53,474 shares in the company, valued at $1,495,667.78. The trade was a 52.58% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, EVP James P. Coyle sold 194,575 shares of the business'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 value 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 represents a 84.08% decrease in their position. The disclosure for this sale can be found here. Insiders own 1.51% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. North Star Investment Management Corp. boosted its position in shares of OPENLANE by 77.6% during the second quarter. North Star Investment Management Corp. now owns 1,575 shares of the specialty retailer's stock valued at $39,000 after buying an additional 688 shares during the last quarter. Canada Pension Plan Investment Board purchased a new position in shares of OPENLANE during the fourth quarter valued at approximately $34,000. Quarry LP boosted its position in shares of OPENLANE by 414.6% during the fourth quarter. Quarry LP now owns 2,182 shares of the specialty retailer's stock valued at $43,000 after buying an additional 1,758 shares during the last quarter. FSC Wealth Advisors LLC purchased a new position in shares of OPENLANE during the first quarter valued at approximately $51,000. Finally, Smartleaf Asset Management LLC boosted its position in shares of OPENLANE by 29.0% during the first quarter. Smartleaf Asset Management LLC now owns 3,270 shares of the specialty retailer's stock valued at $63,000 after buying an additional 735 shares during the last quarter. Hedge funds and other institutional investors own 99.76% of the company's stock.

OPENLANE Stock Down 0.1%

The company has a market cap of $2.97 billion, a PE ratio of 37.81, a PEG ratio of 2.98 and a beta of 1.40. The company has a 50-day moving average of $24.46 and a 200-day moving average of $21.82.

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.