LKQ (NASDAQ:LKQ) Shares Gap Down on Disappointing Earnings

Shares of LKQ Co. (NASDAQ:LKQ) gapped down prior to trading on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $48.93, but opened at $46.16. LKQ shares last traded at $42.64, with a volume of 946,710 shares trading hands.

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

LKQ Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, May 30th. Stockholders of record on Thursday, May 16th will be paid a $0.30 dividend. This represents a $1.20 annualized dividend and a dividend yield of 2.77%. The ex-dividend date is Wednesday, May 15th. LKQ’s payout ratio is 34.29%.

Analysts Set New Price Targets

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

Insider Transactions at LKQ

In other news, CEO Dominick P. Zarcone sold 200,000 shares of the firm’s stock in a transaction that occurred 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 transaction, the chief executive officer now directly owns 386,522 shares in the company, valued at $20,087,548.34. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 0.45% of the company’s stock.

Institutional Trading of LKQ

Hedge funds and other institutional investors have recently made changes to their positions in the company. CWM LLC boosted its holdings in LKQ by 13.1% in the 3rd quarter. CWM LLC now owns 6,581 shares of the auto parts company’s stock valued at $326,000 after purchasing an additional 762 shares in the last quarter. Ronald Blue Trust Inc. boosted its holdings in LKQ by 90.7% in the 3rd quarter. Ronald Blue Trust Inc. now owns 843 shares of the auto parts company’s stock valued at $42,000 after purchasing an additional 401 shares in the last quarter. Hartford Investment Management Co. boosted its holdings in LKQ by 2.1% in the 3rd quarter. Hartford Investment Management Co. now owns 18,429 shares of the auto parts company’s stock valued at $912,000 after purchasing an additional 376 shares in the last quarter. State of Alaska Department of Revenue boosted its holdings in LKQ by 0.8% in the 3rd quarter. State of Alaska Department of Revenue now owns 81,945 shares of the auto parts company’s stock valued at $4,056,000 after purchasing an additional 615 shares in the last quarter. Finally, Pinnacle Bancorp Inc. boosted its stake in shares of LKQ by 167.3% during the 3rd quarter. Pinnacle Bancorp Inc. now owns 759 shares of the auto parts company’s stock worth $38,000 after acquiring an additional 475 shares in the last quarter. Hedge funds and other institutional investors own 95.63% of the company’s stock.

LKQ Price Performance

The company has a 50 day moving average price of $51.08 and a 200 day moving average price of $48.30. The firm has a market cap of $11.55 billion, a PE ratio of 12.37 and a beta of 1.28. The company has a current ratio of 1.47, a quick ratio of 0.53 and a debt-to-equity ratio of 0.59.

LKQ Company Profile

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.