Your updates include a coming takeover

Article Excerpt

KAR AUCTION SERVICES INC. $22 is still a buy for aggressive investors. The company (New York symbol KAR; Manufacturing & Industry sector; Shares outstanding: 133.4 million; Market cap: $2.9 billion; Dividend yield: 3.5%; Takeover Target Rating: Medium; www.karauctionservices.com) sells used vehicles at 250 physical auction sites in North America and over the Internet. The company also provides related services, including vehicle inspection, storage, transportation, reconditioning and financing. On June 28, 2019, Kar completed its spinoff of IAA INC. $45, which is also a buy. That firm (New York symbol IAA; Manufacturing & Industry sector; Shares outstanding: 133.5 million; Market cap: $6.0 billion; No dividend paid; Takeover Target Rating: Medium; www.iaa-auctions.com) generates 80% of its revenue from insurance companies looking to sell vehicles after natural disasters. KAR shareholders received one share of IAA stock for every share held in its parent company. The company aims to increase its annual revenue by 6% to 9% (excluding acquisitions), mainly by expanding its online businesses. It also plans to reward investors with higher dividends—the current annual…