LKQ (NASDAQ:LKQ) Stock Moved Down to "Market Perform" by Barrington Research

Key Points

• Barrington Research downgraded LKQ from “outperform” to “market perform,” while the broader analyst consensus remains “hold” with a $30.58 target price.
• LKQ shares fell 22.4% to $17.44 after the company reported weaker-than-expected earnings and revenue, with quarterly EPS of $0.67 missing estimates and revenue declining 3% year over year.
• The company faces heightened uncertainty after weak preliminary third-quarter results, withdrawn full-year guidance, leadership changes, and operational disruptions in Europe tied partly to a German software rollout.

LKQ (NASDAQ:LKQ - Get Free Report) was downgraded by analysts at Barrington Research from an "outperform" rating to a "market perform" rating in a research note issued on Friday, Briefing.com reports.

Other equities research analysts also recently issued research reports about the company. Weiss Ratings downgraded LKQ from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Thursday, August 13th. JPMorgan Chase & Co. dropped their price target on LKQ from $30.00 to $27.00 and set an "overweight" rating on the stock in a research report on Thursday, October 8th. Stephens dropped their target price on LKQ from $39.00 to $36.50 and set an "overweight" rating on the stock in a report on Tuesday, July 21st. Roth Capital set a $35.00 price objective on shares of LKQ in a research report on Monday, August 3rd. Finally, Robert W. Baird set a $30.00 price objective on shares of LKQ in a research report on Friday, July 31st. Three equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $30.58.

LKQ Trading Down 22.4%

LKQ stock traded down $5.03 during mid-day trading on Friday, hitting $17.44. 10,192,645 shares of the stock were exchanged, compared to its average volume of 3,033,583. The stock has a market capitalization of $4.41 billion, a price-to-earnings ratio of 9.70 and a beta of 0.87. LKQ has a 12 month low of $17.21 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. The firm's fifty day simple moving average is $23.72 and its two-hundred day simple moving average is $25.72.

LKQ (NASDAQ:LKQ - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The auto parts company reported $0.67 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.71 by ($0.04). The business had revenue of $3.41 billion during the quarter, compared to analyst estimates of $3.48 billion. LKQ had a net margin of 3.37% and a return on equity of 10.84%. The business's revenue for the quarter was down 3.0% compared to the same quarter last year. During the same period in the previous year, the business posted $0.87 EPS. LKQ has set its FY 2026 guidance at 2.600-2.900 EPS. Analysts forecast that LKQ will post 2.65 EPS for the current year.

Hedge Funds Weigh In On LKQ

Several hedge funds and other institutional investors have recently modified their holdings of the stock. BlackRock Inc. acquired a new stake in LKQ during the 2nd quarter valued at approximately $1,015,096,000. Pzena Investment Management LLC acquired a new position in LKQ in the 2nd quarter valued at about $398,696,000. Nykredit A S acquired a new stake in shares of LKQ during the 2nd quarter worth about $84,795,000. Bank of New York Mellon Corp purchased a new stake in shares of LKQ in the 2nd quarter valued at approximately $76,343,000. Finally, Bank of America Corp DE acquired a new position in LKQ during the second quarter worth $58,221,000. 95.63% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting LKQ

Here are the key news stories impacting LKQ this week:

• Positive Sentiment: LKQ appointed Salvatore A. Abbate as president and CEO, effective December 15, with a mandate to improve execution and performance. The company also retained Alvarez & Marsal to advise on its European operations, which could support a turnaround. LKQ appoints Salvatore A. Abbate as president and chief executive officer
• Neutral Sentiment: Institutional positioning was mixed in the latest reported quarter: 247 investors increased their holdings while 297 reduced them. Large additions by Pzena Investment Management were offset by significant reductions from Boston Partners, EdgePoint, Capital World Investors, Nordea and Morgan Stanley.
• Negative Sentiment: Preliminary third-quarter revenue was approximately $3.32 billion, down from $3.50 billion a year earlier. Parts-and-services organic revenue fell 5.4%, while Europe declined 9.8%; LKQ cited disruptions from a German enterprise-resource-planning implementation and volume declines in the United Kingdom and Benelux. LKQ preliminary third-quarter 2026 results
• Negative Sentiment: LKQ expects a third-quarter net loss of $16 million to $32 million, or a diluted loss of $0.06 to $0.12 per share. Updated EPS guidance of $0.47 to $0.53 and revenue guidance of $3.3 billion are well below consensus estimates of $0.69 and $3.4 billion, respectively.
• Negative Sentiment: The board removed CEO Justin Jude and European chief Andy Hamilton, and LKQ withdrew its full-year 2026 guidance. The abrupt leadership turnover and lack of visibility increase uncertainty about the duration and cost of the European recovery. LKQ ousts CEO and warns of third-quarter shortfall
• Negative Sentiment: Block & Leviton is investigating whether LKQ misled investors about its European operations and the German software rollout. Although the investigation does not establish wrongdoing, it adds potential legal and reputational risk. LKQ investigation announcement

About LKQ

LKQ Corporation is a global distributor of automotive parts and accessories. The company supplies replacement parts, components and equipment to professional repair shops, collision-repair businesses, insurers, dealerships and other commercial customers. Its product offerings include recycled original-equipment parts, aftermarket parts, specialty vehicle products, tools and equipment.

LKQ's operations include the procurement, dismantling and distribution of salvaged vehicles, allowing it to provide recycled engines, transmissions, body panels and other components.

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