LKQ (NASDAQ:LKQ) Stock Rating Upgraded by Barclays

Key Points

• Barclays upgraded LKQ from “equal weight” to “overweight” and set a $25 price target, implying 43.51% upside from the prior close.
• Analyst sentiment remains mixed: LKQ has a consensus “hold” rating and a $27.07 average price target, with five buys, two holds, and two sells.
• LKQ shares opened at $17.42 near their 12-month low, while the company’s latest quarterly results missed expectations on both EPS and revenue, with revenue down 3% year over year.

LKQ (NASDAQ:LKQ - Get Free Report) was upgraded by analysts at Barclays from an "equal weight" rating to an "overweight" rating in a report issued on Monday, Marketbeat Ratings reports. The brokerage presently has a $25.00 target price on the auto parts company's stock. Barclays's price target would indicate a potential upside of 43.51% from the stock's previous close.

A number of other equities research analysts also recently issued reports on the company. Zacks Research downgraded LKQ from a "hold" rating to a "strong sell" rating in a research report on Monday, August 3rd. Roth Capital lowered LKQ from a "buy" rating to a "neutral" rating and set a $18.00 price objective for the company. in a research note on Monday. Barrington Research downgraded LKQ from an "outperform" rating to a "market perform" rating in a research report on Friday. JPMorgan Chase & Co. decreased their target price on shares of LKQ from $30.00 to $27.00 and set an "overweight" rating on the stock in a research report on Thursday, October 8th. Finally, Stephens lowered their price target on shares of LKQ from $39.00 to $36.50 and set an "overweight" rating for the company in a research note on Tuesday, July 21st. Five investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $27.07.

LKQ Price Performance

LKQ stock opened at $17.42 on Monday. The firm has a 50 day moving average of $23.56 and a 200-day moving average of $25.64. The company has a current ratio of 1.58, a quick ratio of 0.61 and a debt-to-equity ratio of 0.52. LKQ has a 12 month low of $17.21 and a 12 month high of $37.13. The firm has a market capitalization of $4.41 billion, a P/E ratio of 9.68 and a beta of 0.87.

LKQ (NASDAQ:LKQ - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The auto parts company reported $0.67 EPS for the quarter, missing the consensus estimate of $0.71 by ($0.04). The firm had revenue of $3.41 billion for the quarter, compared to analysts' expectations of $3.48 billion. LKQ had a net margin of 3.37% and a return on equity of 10.84%. LKQ's revenue was down 3.0% on a year-over-year basis. During the same period in the prior year, the firm posted $0.87 EPS. LKQ has set its FY 2026 guidance at 2.600-2.900 EPS. As a group, sell-side analysts predict that LKQ will post 2.65 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in LKQ. Leeward Investments LLC MA grew its stake in shares of LKQ by 321.1% in the third quarter. Leeward Investments LLC MA now owns 1,083,743 shares of the auto parts company's stock worth $24,742,000 after purchasing an additional 826,362 shares during the last quarter. Signaturefd LLC lifted its stake in LKQ by 4.3% in the third quarter. Signaturefd LLC now owns 110,944 shares of the auto parts company's stock worth $2,533,000 after acquiring an additional 4,589 shares during the period. Evergreen Capital Management LLC purchased a new stake in LKQ in the third quarter worth $499,000. Murphy Pohlad Asset Management LLC boosted its holdings in LKQ by 32.7% in the third quarter. Murphy Pohlad Asset Management LLC now owns 12,425 shares of the auto parts company's stock valued at $284,000 after acquiring an additional 3,062 shares in the last quarter. Finally, Tectonic Advisors LLC boosted its holdings in LKQ by 9.9% in the third quarter. Tectonic Advisors LLC now owns 218,363 shares of the auto parts company's stock valued at $4,985,000 after acquiring an additional 19,732 shares in the last quarter. 95.63% of the stock is owned by hedge funds and other institutional investors.

LKQ Company Profile

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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