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

Shares of LKQ Co. (NASDAQ:LKQ) gapped down prior to trading on Tuesday following a dissappointing 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 traded.

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

LKQ Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, May 30th. Stockholders of record on Thursday, May 16th will be paid a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 2.88%. LKQ’s payout ratio is presently 34.29%.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on the stock. StockNews.com cut shares of LKQ from a “buy” rating to a “hold” rating in a report on Friday, February 23rd. Stifel Nicolaus restated a “buy” rating and issued a $66.00 price target on shares of LKQ in a research note on Tuesday, April 9th. JPMorgan Chase & Co. cut their price objective on LKQ from $65.00 to $63.00 and set an “overweight” rating on the stock in a research report on Thursday, January 25th. Roth Mkm reiterated a “buy” rating and issued a $65.00 target price on shares of LKQ in a report on Tuesday. Finally, Barrington Research reissued an “outperform” rating and set a $60.00 target price on shares of LKQ in a research note on Friday, April 19th. One research analyst has rated the stock with a hold rating and five have issued a buy rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $63.80.

Insiders Place Their Bets

In related news, CEO Dominick P. Zarcone sold 200,000 shares of the business’s stock in a transaction that occurred on Friday, March 1st. The stock was 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 $20,087,548.34. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. 0.45% of the stock is owned by company insiders.

Hedge Funds Weigh In On LKQ

Institutional investors have recently modified their holdings of the business. CWM LLC boosted its holdings in LKQ by 13.1% in the 3rd quarter. CWM LLC now owns 6,581 shares of the auto parts company’s stock valued at $326,000 after purchasing an additional 762 shares in the last quarter. Ronald Blue Trust Inc. grew its position in LKQ by 90.7% during the third quarter. Ronald Blue Trust Inc. now owns 843 shares of the auto parts company’s stock worth $42,000 after buying an additional 401 shares during the period. Hartford Investment Management Co. increased its holdings in LKQ by 2.1% in the third quarter. Hartford Investment Management Co. now owns 18,429 shares of the auto parts company’s stock valued at $912,000 after buying an additional 376 shares in the last quarter. State of Alaska Department of Revenue increased its holdings in LKQ by 0.8% in the third quarter. State of Alaska Department of Revenue now owns 81,945 shares of the auto parts company’s stock valued at $4,056,000 after buying an additional 615 shares in the last quarter. Finally, GHP Investment Advisors Inc. raised its holdings in LKQ by 3.1% during the third quarter. GHP Investment Advisors Inc. now owns 75,258 shares of the auto parts company’s stock worth $3,765,000 after purchasing an additional 2,241 shares during the last quarter. 95.63% of the stock is owned by institutional investors and hedge funds.

LKQ Trading Down 14.9 %

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

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.