LKQ (NASDAQ:LKQ) Shares Gap Down Following Weak Earnings

LKQ Co. (NASDAQ:LKQ) shares gapped down before the market opened on Tuesday after the company announced weaker than expected quarterly earnings. 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 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 business had revenue of $3.70 billion for the quarter, compared to analysts’ expectations of $3.76 billion. During the same quarter in the previous year, the company earned $1.04 earnings per share. The business’s quarterly revenue was up 10.6% on a year-over-year basis.

LKQ Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, May 30th. Shareholders of record on Thursday, May 16th will be given a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a yield of 2.88%. LKQ’s payout ratio is 34.29%.

Analyst Ratings Changes

Several analysts have commented on the stock. Stifel Nicolaus restated a “buy” rating and issued a $66.00 price objective on shares of LKQ in a report on Tuesday, April 9th. StockNews.com lowered shares of LKQ from a “buy” rating to a “hold” rating in a research note on Friday, February 23rd. Barrington Research reaffirmed an “outperform” rating and set a $60.00 price target on shares of LKQ in a report on Friday, April 19th. Roth Mkm reaffirmed a “buy” rating and issued a $65.00 target price on shares of LKQ in a research report on Tuesday. Finally, JPMorgan Chase & Co. reduced their price objective on LKQ from $65.00 to $63.00 and set an “overweight” rating for the company in a research note on Thursday, January 25th. One investment 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, LKQ currently has an average rating of “Moderate Buy” and an average price target of $63.80.

Insider Buying and Selling

In other news, CEO Dominick P. Zarcone sold 200,000 shares of LKQ stock in a transaction that occurred 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 transaction, the chief executive officer now owns 386,522 shares of the company’s stock, valued at approximately $20,087,548.34. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 0.45% of the stock is owned by insiders.

Institutional Trading of LKQ

Large investors have recently made changes to their positions in the business. Vanguard Group Inc. boosted its position in LKQ by 1.3% during the third quarter. Vanguard Group Inc. now owns 30,245,966 shares of the auto parts company’s stock worth $1,497,478,000 after purchasing an additional 382,054 shares in the last quarter. Wellington Management Group LLP increased its holdings in LKQ by 9.5% in the 4th quarter. Wellington Management Group LLP now owns 11,307,753 shares of the auto parts company’s stock worth $540,398,000 after acquiring an additional 977,585 shares in the last quarter. Massachusetts Financial Services Co. MA raised its position in LKQ by 5.9% during the fourth quarter. Massachusetts Financial Services Co. MA now owns 11,251,102 shares of the auto parts company’s stock worth $537,690,000 after acquiring an additional 626,010 shares during the period. Morgan Stanley lifted its holdings in LKQ by 13.7% during the third quarter. Morgan Stanley now owns 9,907,659 shares of the auto parts company’s stock valued at $490,528,000 after purchasing an additional 1,195,122 shares in the last quarter. Finally, Allspring Global Investments Holdings LLC grew its position in shares of LKQ by 1.2% in the first quarter. Allspring Global Investments Holdings LLC now owns 9,113,931 shares of the auto parts company’s stock valued at $486,775,000 after purchasing an additional 111,124 shares during the period. 95.63% of the stock is owned by hedge funds and other institutional investors.

LKQ Stock Down 14.9 %

The firm has a market cap of $11.11 billion, a PE ratio of 11.90 and a beta of 1.28. The business’s 50 day moving average price is $51.21 and its 200 day moving average price is $48.36. The company has a debt-to-equity ratio of 0.59, a current ratio of 1.47 and a quick ratio of 0.53.

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.