LKQ (NASDAQ:LKQ) Reaches New 1-Year Low Following Weak Earnings

LKQ Corporation (NASDAQ:LKQ)’s share price hit a new 52-week low during mid-day trading on Thursday following a dissappointing earnings announcement. The stock traded as low as $22.34 and last traded at $21.9580, with a volume of 35276 shares changing hands. The stock had previously closed at $26.39.

The auto parts company reported $0.67 earnings per share for the quarter, missing the consensus estimate of $0.71 by ($0.04). LKQ had a return on equity of 11.65% and a net margin of 3.71%.The business had revenue of $3.41 billion for the quarter, compared to analyst estimates of $3.48 billion. During the same quarter last year, the company earned $0.87 EPS. LKQ’s revenue was down 3.0% compared to the same quarter last year. LKQ has set its FY 2026 guidance at 2.600-2.900 EPS.

Wall Street Analysts Forecast Growth

LKQ has been the subject of a number of analyst reports. Barclays reduced their price objective on LKQ from $33.00 to $30.00 and set an “equal weight” rating for the company in a research report on Tuesday, July 21st. Stephens cut their target price on LKQ from $39.00 to $36.50 and set an “overweight” rating on the stock in a research note on Tuesday, July 21st. Zacks Research raised shares of LKQ from a “strong sell” rating to a “hold” rating in a report on Friday, May 1st. Finally, Weiss Ratings upgraded shares of LKQ from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Monday, May 4th. Three investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $36.62.

Institutional Investors Weigh In On LKQ

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Seizert Capital Partners LLC boosted its position in LKQ by 30.1% during the fourth quarter. Seizert Capital Partners LLC now owns 2,178,703 shares of the auto parts company’s stock valued at $65,797,000 after purchasing an additional 503,998 shares during the last quarter. Applied Finance Capital Management LLC increased its holdings in LKQ by 11.0% in the first quarter. Applied Finance Capital Management LLC now owns 662,216 shares of the auto parts company’s stock worth $19,449,000 after buying an additional 65,534 shares during the last quarter. Catalyst Funds Management Pty Ltd bought a new position in shares of LKQ during the 4th quarter valued at $975,000. Handelsbanken Fonder AB boosted its holdings in LKQ by 37.8% in the fourth quarter. Handelsbanken Fonder AB now owns 81,600 shares of the auto parts company’s stock worth $2,464,000 after purchasing an additional 22,400 shares in the last quarter. Finally, Entropy Technologies LP bought a new position in LKQ during the fourth quarter valued at about $3,158,000. Hedge funds and other institutional investors own 95.63% of the company’s stock.

LKQ Stock Down 18.5%

The company has a market cap of $5.48 billion, a price-to-earnings ratio of 10.71 and a beta of 0.83. The business has a 50-day simple moving average of $25.95 and a two-hundred day simple moving average of $29.25. The company has a quick ratio of 0.60, a current ratio of 1.54 and a debt-to-equity ratio of 0.51.

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.