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

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

The auto parts company reported $0.82 earnings per share for the quarter, missing analysts’ consensus estimates of $0.95 by ($0.13). The business had revenue of $3.70 billion during the quarter, compared to analyst estimates of $3.76 billion. LKQ had a net margin of 5.79% and a return on equity of 15.94%. LKQ’s revenue for the quarter was up 10.6% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.04 EPS.

LKQ Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, May 30th. Investors of record on Thursday, May 16th will be issued a $0.30 dividend. The ex-dividend date of this dividend is Wednesday, May 15th. This represents a $1.20 dividend on an annualized basis and a yield of 2.80%. LKQ’s dividend payout ratio is currently 38.96%.

Analyst Upgrades and Downgrades

A number of research firms recently commented on LKQ. Barrington Research restated an “outperform” rating and issued a $60.00 price objective on shares of LKQ in a report on Friday, April 19th. JPMorgan Chase & Co. lowered their price target on LKQ from $65.00 to $63.00 and set an “overweight” rating on the stock in a report on Thursday, January 25th. StockNews.com downgraded LKQ from a “buy” rating to a “hold” rating in a report on Friday, February 23rd. Stifel Nicolaus reiterated a “buy” rating and set a $66.00 price target on shares of LKQ in a report on Tuesday, April 9th. Finally, Robert W. Baird lowered their price target on LKQ from $58.00 to $54.00 and set an “outperform” rating on the stock in a report on Wednesday. One research analyst has rated the stock with a hold rating and five have issued a buy rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $61.60.

Insider Activity

In other news, CEO Dominick P. Zarcone sold 200,000 shares of the business’s stock in a transaction on Friday, March 1st. The shares were sold at an average price of $51.97, for a total value of $10,394,000.00. Following the sale, the chief executive officer now owns 386,522 shares in the company, valued at approximately $20,087,548.34. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.55% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Osborne Partners Capital Management LLC bought a new position in shares of LKQ in the fourth quarter valued at about $5,888,000. River Road Asset Management LLC raised its holdings in shares of LKQ by 2.5% in the fourth quarter. River Road Asset Management LLC now owns 4,690,401 shares of the auto parts company’s stock valued at $224,154,000 after buying an additional 114,207 shares during the last quarter. Applied Finance Capital Management LLC raised its holdings in shares of LKQ by 8.3% in the third quarter. Applied Finance Capital Management LLC now owns 339,801 shares of the auto parts company’s stock valued at $16,824,000 after buying an additional 26,033 shares during the last quarter. Zurcher Kantonalbank Zurich Cantonalbank raised its holdings in shares of LKQ by 369.8% in the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 456,839 shares of the auto parts company’s stock valued at $21,832,000 after buying an additional 359,606 shares during the last quarter. Finally, Coldstream Capital Management Inc. raised its holdings in shares of LKQ by 7.1% in the third quarter. Coldstream Capital Management Inc. now owns 4,071 shares of the auto parts company’s stock valued at $202,000 after buying an additional 269 shares during the last quarter. 95.63% of the stock is owned by institutional investors.

LKQ Price Performance

The firm has a market capitalization of $11.45 billion, a P/E ratio of 14.02 and a beta of 1.28. The company has a quick ratio of 0.53, a current ratio of 1.70 and a debt-to-equity ratio of 0.67. The stock has a fifty day moving average of $50.97 and a 200-day moving average of $48.27.

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.