JPMorgan Chase & Co. Has Lowered Expectations for LKQ (NASDAQ:LKQ) Stock Price

Key Points

• JPMorgan lowered LKQ’s price target from $30 to $27 while maintaining an “overweight” rating, implying about 22.7% upside from the reported $22.01 share price.
• Analyst sentiment is mixed: LKQ has an average “Hold” rating and a consensus price target of $30.58, with recent downgrades from several firms.
• LKQ’s latest quarterly results missed expectations, with $0.67 in adjusted EPS and $3.41 billion in revenue; revenue declined 3% year over year, while institutional investors own 95.63% of the stock.

LKQ (NASDAQ:LKQ - Get Free Report) had its price target dropped by JPMorgan Chase & Co. from $30.00 to $27.00 in a report released on Thursday, Benzinga reports. The firm currently has an "overweight" rating on the auto parts company's stock. JPMorgan Chase & Co.'s price target indicates a potential upside of 22.67% from the company's current price.

Other equities analysts have also recently issued reports about the company. Weiss Ratings cut LKQ from a "hold (c-)" rating to a "sell (d+)" rating in a report on Thursday, August 13th. Barclays cut their target price on LKQ from $30.00 to $25.00 and set an "equal weight" rating for the company in a research note on Monday, August 3rd. Robert W. Baird set a $30.00 target price on LKQ in a report on Friday, July 31st. Zacks Research cut LKQ from a "hold" rating to a "strong sell" rating in a research report on Monday, August 3rd. Finally, Roth Capital set a $35.00 target price on LKQ in a research note on Monday, August 3rd. Three equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $30.58.

LKQ Stock Performance

Shares of LKQ traded down $0.02 during trading hours on Thursday, hitting $22.01. The company had a trading volume of 4,749,209 shares, compared to its average volume of 2,964,854. The firm has a market cap of $5.57 billion, a price-to-earnings ratio of 12.23 and a beta of 0.87. The business has a fifty day moving average of $24.20 and a 200-day moving average of $26.26. LKQ has a 12 month low of $21.17 and a 12 month high of $37.13. The company has a quick ratio of 0.61, a current ratio of 1.58 and a debt-to-equity ratio of 0.52.

LKQ (NASDAQ:LKQ - Get Free Report) last posted its earnings results on Thursday, July 30th. The auto parts company reported $0.67 earnings per share for the quarter, missing analysts' consensus estimates of $0.71 by ($0.04). LKQ had a return on equity of 10.84% and a net margin of 3.37%.The firm had revenue of $3.41 billion for the quarter, compared to analyst estimates of $3.48 billion. During the same period in the prior year, the business posted $0.87 EPS. The firm's quarterly 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. Equities analysts anticipate that LKQ will post 2.67 EPS for the current fiscal year.

Hedge Funds Weigh In On LKQ

A number of hedge funds have recently made changes to their positions in LKQ. BlackRock Inc. bought a new stake in shares of LKQ during the 2nd quarter valued at $1,015,096,000. Engineers Gate Manager LP bought a new position in LKQ in the second quarter worth approximately $3,438,000. Private Management Group Inc. grew its stake in shares of LKQ by 18.5% during the 2nd quarter. Private Management Group Inc. now owns 1,564,152 shares of the auto parts company's stock valued at $41,184,000 after acquiring an additional 244,141 shares during the period. Tidal Investments LLC lifted its position in shares of LKQ by 90.1% in the second quarter. Tidal Investments LLC now owns 320,735 shares of the auto parts company's stock valued at $8,445,000 after acquiring an additional 152,003 shares in the last quarter. Finally, Lakewood Capital Management LP bought a new position in shares of LKQ during the 2nd quarter valued at about $6,977,000. 95.63% of the stock is currently owned by institutional investors.

About LKQ

LKQ Corporation NASDAQ: LKQ is a global distributor of replacement parts, components and accessories for automobiles, trucks and other vehicles. The company supplies collision and mechanical repair businesses, insurers, professional service providers, retailers and do-it-yourself customers with a broad range of products.

Its offerings include new aftermarket parts, recycled original-equipment parts, remanufactured and refurbished components, specialty vehicle equipment, tools and accessories.

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