LKQ (NASDAQ:LKQ) Shares Gap Down Following Weak 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 changing hands.

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

LKQ Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, May 30th. Shareholders of record on Thursday, May 16th will be paid a $0.30 dividend. This represents a $1.20 annualized dividend and a yield of 2.81%. LKQ’s dividend payout ratio (DPR) is 34.29%.

Wall Street Analyst Weigh In

Several research firms have commented on LKQ. StockNews.com lowered shares of LKQ from a “buy” rating to a “hold” rating in a report on Friday, February 23rd. JPMorgan Chase & Co. decreased 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. Stifel Nicolaus reaffirmed a “buy” rating and set a $66.00 price target on shares of LKQ in a report on Tuesday, April 9th. Finally, Barrington Research reaffirmed an “outperform” rating and set a $60.00 price target on shares of LKQ in a report on Friday. One research analyst has rated the stock with a hold rating and four have assigned a buy rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $63.50.

Insider Buying and Selling at LKQ

In other LKQ 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 transaction of $10,394,000.00. Following the completion of 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 document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 0.45% of the stock is currently owned by company insiders.

Institutional Trading of LKQ

Several institutional investors have recently made changes to their positions in LKQ. OFI Invest Asset Management purchased a new stake in LKQ during the third quarter worth about $26,000. CVA Family Office LLC purchased a new stake in LKQ during the fourth quarter worth about $26,000. Private Trust Co. NA increased its holdings in LKQ by 228.4% during the fourth quarter. Private Trust Co. NA now owns 647 shares of the auto parts company’s stock worth $31,000 after buying an additional 450 shares during the last quarter. NBC Securities Inc. purchased a new stake in LKQ during the third quarter worth about $34,000. Finally, Headinvest LLC bought a new position in LKQ during the third quarter worth about $34,000. Institutional investors own 95.63% of the company’s stock.

LKQ Price Performance

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 stock has a market cap of $11.40 billion, a P/E ratio of 12.69 and a beta of 1.28. The business’s 50-day simple moving average is $51.21 and its two-hundred 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.