OPENLANE (NYSE:KAR) Shares Down 3.9% - Here's What Happened

Key Points

• OPENLANE, Inc. (NYSE:KAR) shares fell by 3.9%, trading as low as $26.95, with a significant drop in trading volume to approximately 185,580 shares, down 78% from the average.
• Analysts have revised target prices for OPENLANE, with Stephens raising their target from $32 to $35 and Barrington Research from $25 to $30, but the stock currently has an average rating of "Hold" among analysts.
• OPENLANE reported earnings of $0.33 per share for the last quarter, exceeding estimates and showing an increase in revenue from the previous year by 11.6% to $481.7 million.

OPENLANE, Inc. (NYSE:KAR - Get Free Report) was down 3.9% during trading on Monday . The company traded as low as $26.95 and last traded at $27.24. Approximately 185,580 shares changed hands during trading, a decline of 78% from the average daily volume of 843,733 shares. The stock had previously closed at $28.35.

Analyst Ratings Changes

KAR has been the subject of several recent research reports. Weiss Ratings reissued a "hold (c+)" rating on shares of OPENLANE in a report on Saturday, September 27th. Stephens lifted their target price on shares of OPENLANE from $32.00 to $35.00 and gave the stock an "overweight" rating in a research note on Wednesday, September 10th. JPMorgan Chase & Co. raised their price objective on shares of OPENLANE from $22.00 to $25.00 and gave the stock a "neutral" rating in a report on Thursday, August 7th. Bank of America boosted their target price on shares of OPENLANE from $22.00 to $25.00 and gave the company a "neutral" rating in a report on Monday, June 16th. Finally, Barrington Research increased their target price on OPENLANE from $25.00 to $30.00 and gave the stock an "outperform" rating in a research report on Wednesday, August 6th. Two equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $28.75.

OPENLANE Stock Down 2.2%

The company has a market cap of $2.95 billion, a PE ratio of 37.47, a P/E/G ratio of 2.93 and a beta of 1.33. The stock has a 50-day moving average of $28.11 and a 200-day moving average of $24.02.

OPENLANE (NYSE:KAR - Get Free Report) last announced its earnings results on Wednesday, August 6th. The specialty retailer reported $0.33 earnings per share for the quarter, topping analysts' consensus estimates 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 analyst estimates of $453.26 million. During the same period in the prior year, the company earned $0.19 EPS. The company's quarterly revenue was up 11.6% compared to the same quarter last year. Research analysts expect that OPENLANE, Inc. will post 0.95 EPS for the current year.

Insiders Place Their Bets

In other OPENLANE news, EVP James P. Coyle sold 194,575 shares of OPENLANE stock in a transaction dated 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 completion of the sale, the executive vice president owned 36,851 shares of the company's stock, valued at $1,029,616.94. The trade was a 84.08% decrease in their ownership of the stock. 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 the company's stock in a transaction dated Thursday, August 7th. The stock was sold at an average price of $27.97, for a total value of $1,658,313.33. Following the completion of the transaction, the executive vice president 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. Insiders own 1.51% 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. Burgundy Asset Management Ltd. raised its stake in shares of OPENLANE by 3.8% during the second quarter. Burgundy Asset Management Ltd. now owns 10,306,027 shares of the specialty retailer's stock worth $251,982,000 after acquiring an additional 380,366 shares in the last quarter. Hawk Ridge Capital Management LP boosted its stake in shares of OPENLANE by 11.2% in the 1st quarter. Hawk Ridge Capital Management LP now owns 4,577,285 shares of the specialty retailer's stock valued at $88,250,000 after purchasing an additional 461,976 shares in the last quarter. State Street Corp grew its holdings in shares of OPENLANE by 2.8% during the 2nd quarter. State Street Corp now owns 4,140,043 shares of the specialty retailer's stock valued at $101,224,000 after purchasing an additional 110,841 shares during the last quarter. Brown Advisory Inc. raised its position in OPENLANE by 4.9% in the 2nd quarter. Brown Advisory Inc. now owns 2,662,789 shares of the specialty retailer's stock worth $65,105,000 after purchasing an additional 124,312 shares during the period. Finally, Geode Capital Management LLC lifted its stake in OPENLANE by 0.4% in the second quarter. Geode Capital Management LLC now owns 2,516,983 shares of the specialty retailer's stock worth $61,548,000 after purchasing an additional 9,216 shares during the last quarter. Hedge funds and other institutional investors own 99.76% of the company's stock.

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.

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