LKQ (NASDAQ:LKQ) Stock Gets Price Target Cut from JPMorgan Chase & Co.

LKQ (NASDAQ:LKQ) had its price target cut by JPMorgan Chase & Co. from $22.00 to $20.00 in a research note published on Friday morning,Benzinga reports. They currently have an overweight rating on the auto parts company’s stock.

A number of other brokerages have also recently commented on LKQ. Barclays raised shares of LKQ from an “equal weight” rating to an “overweight” rating and set a $25.00 price objective on the stock in a research note on Monday, October 26th. Raymond James Financial set a $30.00 price target on LKQ in a report on Friday, July 31st. Zacks Research downgraded LKQ from a “hold” rating to a “strong sell” rating in a research note on Monday, August 3rd. Robert W. Baird lowered their price target on LKQ from $30.00 to $23.00 and set an “outperform” rating on the stock in a report on Monday, October 26th. Finally, Stephens lowered their price objective on LKQ from $39.00 to $36.50 and set an “overweight” rating on the stock in a research note on Tuesday, July 21st. Five equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $26.07.

LKQ Stock Performance

LKQ stock opened at $18.56 on Friday. The stock has a market cap of $4.68 billion, a PE ratio of 18.56 and a beta of 0.87. LKQ has a 12-month low of $16.85 and a 12-month high of $37.13. The company has a quick ratio of 0.67, a current ratio of 1.75 and a debt-to-equity ratio of 0.58. The business’s 50-day moving average price is $22.76 and its two-hundred day moving average price is $27.22.

LKQ (NASDAQ:LKQ) last released its quarterly earnings data on Thursday, October 29th. The auto parts company reported $0.50 earnings per share for the quarter, missing analysts’ consensus estimates of $0.58 by ($0.08). LKQ had a net margin of 1.89% and a return on equity of 9.57%. The business had revenue of $3.32 billion during the quarter, compared to analysts’ expectations of $3.36 billion. During the same quarter in the prior year, the firm posted $0.84 earnings per share. The firm’s quarterly revenue was down 5.1% on a year-over-year basis. As a group, analysts expect that LKQ will post 2.26 earnings per share for the current fiscal year.

LKQ Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 3rd. Stockholders of record on Thursday, November 19th will be paid a dividend of $0.30 per share. The ex-dividend date is Thursday, November 19th. This represents a $1.20 annualized dividend and a dividend yield of 6.5%. LKQ’s dividend payout ratio (DPR) is currently 120.00%.

Institutional Investors Weigh In On LKQ

Institutional investors have recently added to or reduced their stakes in the business. Bfsg LLC raised its stake in LKQ by 38.1% during the third quarter. Bfsg LLC now owns 16,256 shares of the auto parts company’s stock worth $371,000 after purchasing an additional 4,486 shares during the period. Pzena Investment Management LLC raised its holdings in LKQ by 49.0% in the third quarter. Pzena Investment Management LLC now owns 22,556,858 shares of the auto parts company’s stock worth $514,973,000 after purchasing an additional 7,414,573 shares during the period. Salomon & Ludwin LLC acquired a new stake in shares of LKQ during the 3rd quarter worth about $61,000. One Way Holdings LLC bought a new stake in shares of LKQ in the third quarter worth $10,983,000. Finally, Mirae Asset Global Investments Co. Ltd. purchased a new stake in LKQ in the 3rd quarter valued at $87,000. Hedge funds and other institutional investors own 95.63% of the company’s stock.

Key Stories Impacting LKQ

Here are the key news stories impacting LKQ this week:

• Positive Sentiment: Dividend maintained: LKQ declared a quarterly dividend of $0.30 per share, equivalent to $1.20 annually and a reported yield of approximately 6.6%. The dividend provides some support for income-focused investors, although it is unlikely to offset the operational concerns.
• Neutral Sentiment: Analyst stance remains cautious: Barrington maintained a Hold rating, citing ERP-related earnings pressure and uncertainty around a European recovery. The unchanged rating indicates that the latest news reinforces, rather than materially changes, the existing cautious view. LKQ Hold Rating Maintained
• Negative Sentiment: ERP disruption and leadership change: LKQ disclosed continuing problems with its European enterprise resource planning implementation, while its CEO departed immediately. Investors had previously been told that related operating processes had normalized, making the latest disclosure especially damaging to credibility. LKQ Investor Scrutiny and CEO Departure
• Negative Sentiment: Guidance withdrawn and strategic review paused: LKQ suspended its full-year 2026 guidance and paused its strategic review as European results lagged. This removes important visibility into future earnings and suggests management is prioritizing an operational reset over potential portfolio or strategic transactions. LKQ Suspends Guidance and Pauses Strategic Review
• Negative Sentiment: Weak quarterly performance: Third-quarter revenue was approximately $3.32 billion, down 5.1% year over year and below the roughly $3.36 billion consensus estimate. Reported EPS of $0.50 fell from $0.84 a year earlier and missed the $0.61 consensus cited by some analysts, despite exceeding a separate Zacks estimate of $0.48. LKQ Third-Quarter 2026 Results
• Negative Sentiment: Legal scrutiny adds pressure: Several law firms announced investigations into potential securities-law violations related to LKQ’s disclosures. These announcements do not establish wrongdoing, but they add reputational and potential litigation risk following the sharp decline.

About LKQ

LKQ Corporation is a global distributor of automotive parts and accessories. The company supplies replacement parts, components and equipment to professional repair shops, collision-repair businesses, insurers, dealerships and other commercial customers. Its product offerings include recycled original-equipment parts, aftermarket parts, specialty vehicle products, tools and equipment.

LKQ’s operations include the procurement, dismantling and distribution of salvaged vehicles, allowing it to provide recycled engines, transmissions, body panels and other components.