LKQ (NASDAQ:LKQ) Reaches New 1-Year Low Following Weak Earnings

LKQ Co. (NASDAQ:LKQ)’s stock price hit a new 52-week low on Wednesday following a dissappointing earnings announcement. The stock traded as low as $41.30 and last traded at $42.53, with a volume of 645581 shares changing hands. The stock had previously closed at $41.65.

The auto parts company reported $0.82 EPS for the quarter, missing the consensus estimate of $0.95 by ($0.13). LKQ had a net margin of 6.75% and a return on equity of 17.24%. The company had revenue of $3.70 billion during the quarter, compared to analyst estimates of $3.76 billion. During the same period in the prior year, the business posted $1.04 EPS. LKQ’s revenue for the quarter was up 10.6% compared to the same quarter last year.

LKQ Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, May 30th. Investors of record on Thursday, May 16th will be issued a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a dividend yield of 2.80%. The ex-dividend date of this dividend is Wednesday, May 15th. LKQ’s dividend payout ratio is currently 34.29%.

Analyst Ratings Changes

Several research analysts recently weighed in on the stock. Robert W. Baird cut their target price on shares of LKQ from $58.00 to $54.00 and set an “outperform” rating for the company in a research note on Wednesday. JPMorgan Chase & Co. cut their price objective on shares of LKQ from $65.00 to $63.00 and set an “overweight” rating on the stock in a research report on Thursday, January 25th. Roth Mkm reiterated a “buy” rating and set a $65.00 price target on shares of LKQ in a research report on Tuesday. Barrington Research reaffirmed an “outperform” rating and issued a $60.00 price objective on shares of LKQ in a research note on Friday, April 19th. Finally, StockNews.com lowered LKQ from a “buy” rating to a “hold” rating in a research report on Friday, February 23rd. One research analyst has rated the stock with a hold rating and five have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $61.60.

Insider Buying and Selling

In other news, CEO Dominick P. Zarcone sold 200,000 shares of the firm’s stock in a transaction on Friday, March 1st. The shares were sold at an average price of $51.97, for a total transaction of $10,394,000.00. Following the completion of the transaction, the chief executive officer now owns 386,522 shares of the company’s stock, valued at $20,087,548.34. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.45% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On LKQ

A number of large investors have recently made changes to their positions in LKQ. Czech National Bank increased its stake in LKQ by 0.5% in the 1st quarter. Czech National Bank now owns 47,084 shares of the auto parts company’s stock worth $2,515,000 after purchasing an additional 216 shares during the period. Benjamin F. Edwards & Company Inc. raised its position in LKQ by 40.8% in the fourth quarter. Benjamin F. Edwards & Company Inc. now owns 777 shares of the auto parts company’s stock worth $37,000 after acquiring an additional 225 shares during the period. Jacobi Capital Management LLC boosted its position in shares of LKQ by 1.4% in the third quarter. Jacobi Capital Management LLC now owns 17,470 shares of the auto parts company’s stock worth $865,000 after purchasing an additional 239 shares during the period. Evergreen Wealth Solutions LLC raised its position in shares of LKQ by 4.9% during the fourth quarter. Evergreen Wealth Solutions LLC now owns 5,229 shares of the auto parts company’s stock valued at $250,000 after buying an additional 244 shares during the last quarter. Finally, Blue Trust Inc. raised its position in shares of LKQ by 30.8% during the 4th quarter. Blue Trust Inc. now owns 1,103 shares of the auto parts company’s stock valued at $55,000 after buying an additional 260 shares in the last quarter. 95.63% of the stock is owned by institutional investors.

LKQ Trading Up 2.9 %

The company has a quick ratio of 0.53, a current ratio of 1.47 and a debt-to-equity ratio of 0.59. The firm has a market cap of $11.43 billion, a P/E ratio of 12.24 and a beta of 1.28. The company’s 50 day simple moving average is $51.21 and its 200-day simple moving average is $48.36.

About LKQ

LKQ Corporation engages in the distribution of replacement parts, components, and systems used in the repair and maintenance of vehicles and specialty vehicle aftermarket products and accessories. It operates through four segments: Wholesale-North America, Europe, Specialty, and Self Service. The company distributes bumper covers, automotive body panels, and lights, as well as mechanical automotive parts and accessories; salvage products, including mechanical and collision parts comprising engines; transmissions; door assemblies; sheet metal products, such as trunk lids, fenders, and hoods; lights and bumper assemblies; scrap metal and other materials to metals recyclers; and brake pads, discs and sensors, clutches, steering and suspension products, filters, and oil and automotive fluids, as well as electrical products, including spark plugs and batteries.