IAA - IAA Inc.: Possible Change On The Horizon

• Shares of salvage auctioneer IAA, Inc. are down some 20% after the company announced its FY22 forecast that included little organic revenue growth and none at its Adj. EBITDA line.
• A shift in business away from its traditional consignment model, inflationary pressures in towing, and the loss of business from a large customer are all to blame.
• With its forward price-to-sales and P/E ratios down by almost half since November 2021, the insider buying after the disappointing forecast merited a deeper dive.
• An activist shareholder has recently called for sale of the company or management changes. A full investment analysis follows in the paragraphs below.

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