IAA Inc. (NYSE: IAA) stock fell -3.02% on Tuesday to $41.75 against a previous-day closing price of $43.05. With 6.31 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.89 million shares. During the session, the Specialty Business Services company that operates in wider Industrials sector, reached to the highest price of $43.09 whereas the lowest price it dropped to was $41.61. The 52-week range on IAA shows that it touched its highest point at $47.36 and its lowest point at $31.32 during that stretch. It currently has a 1-year price target of $46.00. Beta for the stock currently stands at 1.47.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of IAA was up-trending over the past week, with a rise of 3.50%, but this was up by 8.78% over a month. Three-month performance surged to 15.33% while six-month performance rose 15.62%. The stock lost -6.22% in the past year, while it has gained 4.37% so far this year. A look at the trailing 12-month EPS for IAA yields 2.14 with Next year EPS estimates of 2.32. For the next quarter, that number is 0.53. This implies an EPS growth rate of 50.90% for this year and 4.08% for next year.
Float and Shares Shorts:
At present, 133.70 million IAA shares are outstanding with a float of 133.10 million shares on hand for trading. On Oct 13, 2022, short shares totaled 3.18 million, which was 2.38% higher than short shares on Sep 14, 2022. In addition to Mr. John W. Kett as the firm’s CEO, Pres & Director, Ms. Susan L. Healy serves as its Exec. VP & CFO.
Through their ownership of 106.06% of IAA’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 57.66% of IAA, in contrast to 57.12% held by mutual funds. Shares owned by individuals account for 0.57%. As the largest shareholder in IAA with 9.79% of the stake, Melvin Capital Management LP holds 13,100,000 shares worth 13,100,000. A second-largest stockholder of IAA, The Vanguard Group, Inc., holds 12,044,583 shares, controlling over 9.00% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in IAA, holding 10,269,092 shares or 7.68% stake. With a 3.40% stake in IAA, the Eaton Vance Atlanta Capital SMID is the largest stakeholder. A total of 4,549,232 shares are owned by the mutual fund manager. The iShares Core S&P Mid Cap ETF, which owns about 3.09% of IAA stock, is the second-largest Mutual Fund holder. It holds 4,126,909 shares valued at 165.08 million. Vanguard Total Stock Market Index holds 3.04% of the stake in IAA, owning 4,065,623 shares worth 162.62 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for IAA since 7 analysts follow the stock currently. There are 1 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 5 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With IAA analysts setting a high price target of $46.00 and a low target of $40.00, the average target price over the next 12 months is $42.75. Based on these targets, IAA could surge 10.18% to reach the target high and fall by -4.19% to reach the target low. Reaching the average price target will result in a growth of 2.4% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. IAA will report FY 2022 earnings on 02/09/2024. Analysts have provided yearly estimates in a range of $2.40 being high and $2.20 being low. For IAA, this leads to a yearly average estimate of $2.26. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. IAA Inc. surprised analysts by -$0.05 when it reported $0.45 EPS against a consensus estimate of $0.50. The surprise factor in the prior quarter was $0.05. Based on analyst estimates, the high estimate for the next quarter is $0.62 and the low estimate is $0.47. The average estimate for the next quarter is thus $0.52.
Summary of Insider Activity:
Insiders traded IAA stock several times over the past three months with 0 Buys and 2 Sells. In these transactions, 0 shares were bought while 268 shares were sold. The number of buy transactions has increased to 64 while that of sell transactions has risen to 22 over the past year. The total number of shares bought during that period was 471,530 while 9,658 shares were sold.