Wall Street Zen Downgrades LKQ (NASDAQ:LKQ) to Hold

LKQ (NASDAQ:LKQ) was downgraded by investment analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a report issued on Sunday.

A number of other equities analysts have also weighed in on the company. Barclays set a $34.00 price objective on LKQ in a research note on Friday. Zacks Research downgraded LKQ from a “hold” rating to a “strong sell” rating in a research note on Monday, January 26th. Roth Mkm reiterated a “buy” rating and set a $43.00 price objective (down previously from $46.00) on shares of LKQ in a research report on Monday, November 3rd. Weiss Ratings restated a “sell (d+)” rating on shares of LKQ in a research report on Monday, December 29th. Finally, Stephens assumed coverage on shares of LKQ in a report on Tuesday, December 9th. They issued an “overweight” rating and a $39.00 price target on the stock. Four investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $43.60.

LKQ Price Performance

NASDAQ LKQ opened at $34.10 on Friday. LKQ has a one year low of $28.13 and a one year high of $44.82. The stock has a 50-day moving average of $32.44 and a 200 day moving average of $31.25. The company has a debt-to-equity ratio of 0.55, a quick ratio of 0.67 and a current ratio of 1.67. The company has a market capitalization of $8.73 billion, a price-to-earnings ratio of 14.45 and a beta of 0.91.

LKQ (NASDAQ:LKQ) last released its quarterly earnings results on Thursday, February 19th. The auto parts company reported $0.59 EPS for the quarter, missing the consensus estimate of $0.65 by ($0.06). LKQ had a net margin of 4.36% and a return on equity of 12.29%. The business had revenue of $3.31 billion for the quarter, compared to analysts’ expectations of $3.24 billion. During the same period in the previous year, the company earned $0.80 EPS. LKQ’s revenue for the quarter was up 2.7% compared to the same quarter last year. LKQ has set its FY 2026 guidance at 2.900-3.200 EPS. On average, sell-side analysts forecast that LKQ will post 3.57 EPS for the current year.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the stock. State of Tennessee Department of Treasury lifted its holdings in shares of LKQ by 152.3% during the 4th quarter. State of Tennessee Department of Treasury now owns 78,360 shares of the auto parts company’s stock valued at $2,574,000 after purchasing an additional 47,299 shares during the last quarter. Captrust Financial Advisors increased its position in LKQ by 20.7% during the 4th quarter. Captrust Financial Advisors now owns 102,544 shares of the auto parts company’s stock valued at $3,097,000 after buying an additional 17,605 shares in the last quarter. Entropy Technologies LP acquired a new position in LKQ during the 4th quarter valued at about $3,158,000. Arkadios Wealth Advisors acquired a new stake in LKQ in the fourth quarter worth about $205,000. Finally, Parallel Advisors LLC grew its stake in shares of LKQ by 187.3% during the fourth quarter. Parallel Advisors LLC now owns 4,396 shares of the auto parts company’s stock worth $133,000 after acquiring an additional 2,866 shares during the last quarter. 95.63% of the stock is owned by institutional investors.

LKQ News Roundup

Here are the key news stories impacting LKQ this week:

• Positive Sentiment: Revenue beat and top‑line stability — Q4 sales of about $3.31B topped Street estimates and were up modestly year‑over‑year, signaling resilient demand in parts of the business. LKQ Corporation Q4 2025 Earnings Call Summary
• Positive Sentiment: Strong cash flow and shareholder returns — LKQ reported ~$1.1B operating cash flow and ~$847M free cash flow for the year and returned $116M to shareholders in Q4 via $40M buys and $76M dividends; management also declared a $0.30 quarterly dividend (3.6% yield), which supports income‑oriented investors. LKQ Corporation Announces Results for Fourth Quarter and Full Year 2025
• Neutral Sentiment: Strategic review announced — the board launched a comprehensive review of strategic alternatives and portfolio streamlining; this can unlock value but creates near‑term uncertainty about structure and potential one‑time costs. LKQ Q4 deep dive: Earnings resilient despite margin pressure, strategic review launched
• Negative Sentiment: EPS missed expectations — Q4 adjusted EPS was $0.59 vs. consensus ~ $0.65, and quarterly profit declined year‑over‑year, which pressured near‑term stock sentiment. LKQ Q4 Earnings Miss Expectations, Revenues Decline Y/Y
• Negative Sentiment: Below‑consensus 2026 guidance and margin pressure — management set FY‑2026 adjusted EPS of $2.90–$3.20, below the Street consensus cited by management, and warned of margin headwinds and restructuring costs that weigh on near‑term profitability. LKQ outlines $2.90–$3.20 adjusted EPS target and strategic review amid portfolio streamlining

About LKQ

LKQ Corporation is a leading provider of alternative and specialty parts to repair and accessorize automobiles and other vehicles. The company supplies a broad range of replacement components, including recycled original equipment manufacturer (OEM) parts, aftermarket parts, refurbished and remanufactured items. Its products support collision repair, mechanical repair and performance enhancement needs across passenger cars, heavy trucks and recreational vehicles.

Through a combination of in-house operations and strategic acquisitions, LKQ has developed a comprehensive product portfolio that extends beyond core replacement parts.