Azarias Capital Management L.P. Purchases New Stake in LKQ Corporation $LKQ

Key Points

• Azarias Capital Management acquired 124,471 LKQ shares worth approximately $2.84 million in the third quarter, making LKQ 2.7% of the fund’s portfolio. Institutional investors collectively own 95.63% of the company.
• Analyst sentiment is mixed, with three Buy, one Hold and two Sell ratings; MarketBeat reports a consensus rating of Hold and an average price target of $30.58, above the cited trading price of $21.82.
• LKQ’s latest quarter fell short of expectations, reporting $0.67 in EPS and $3.41 billion in revenue, while the company continues to pay a quarterly dividend of $0.30, equivalent to a 5.5% annualized yield.

Azarias Capital Management L.P. acquired a new stake in shares of LKQ Corporation (NASDAQ:LKQ - Free Report) in the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund acquired 124,471 shares of the auto parts company's stock, valued at approximately $2,842,000. LKQ comprises 2.7% of Azarias Capital Management L.P.'s holdings, making the stock its 16th biggest holding.

Other hedge funds have also added to or reduced their stakes in the company. Harbor Investment Advisory LLC increased its holdings in shares of LKQ by 260.0% during the first quarter. Harbor Investment Advisory LLC now owns 900 shares of the auto parts company's stock valued at $26,000 after acquiring an additional 650 shares in the last quarter. Northwestern Mutual Wealth Management Co. bought a new position in LKQ in the 2nd quarter worth about $25,000. Cedar Mountain Advisors LLC bought a new position in LKQ in the 1st quarter worth about $28,000. Global Retirement Partners LLC purchased a new stake in LKQ during the 2nd quarter valued at about $25,000. Finally, Essential Partners LLC purchased a new stake in LKQ during the 1st quarter valued at about $30,000. 95.63% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

Several research analysts have issued reports on the stock. Stephens decreased their target price on shares of LKQ from $39.00 to $36.50 and set an "overweight" rating for the company in a report on Tuesday, July 21st. Robert W. Baird set a $30.00 price target on shares of LKQ in a report on Friday, July 31st. Roth Capital set a $35.00 price target on shares of LKQ in a research report on Monday, August 3rd. Zacks Research downgraded shares of LKQ from a "hold" rating to a "strong sell" rating in a research report on Monday, August 3rd. Finally, JPMorgan Chase & Co. decreased their price objective on shares of LKQ from $30.00 to $27.00 and set an "overweight" rating for the company in a report on Thursday, October 8th. Three investment 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. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $30.58.

LKQ Stock Performance

LKQ stock traded down $0.36 during midday trading on Wednesday, reaching $21.82. 2,906,662 shares of the company traded hands, compared to its average volume of 2,973,513. The firm has a market capitalization of $5.52 billion, a price-to-earnings ratio of 12.12 and a beta of 0.87. The business has a 50 day moving average of $24.10 and a two-hundred day moving average of $26.07. LKQ Corporation has a 12 month low of $21.17 and a 12 month high of $37.13. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.58 and a quick ratio of 0.61.

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

LKQ Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, September 3rd. Stockholders of record on Thursday, August 20th were paid a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 5.5%. The ex-dividend date was Thursday, August 20th. LKQ's dividend payout ratio (DPR) is 66.67%.

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.

Want to see what other hedge funds are holding LKQ? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for LKQ Corporation (NASDAQ:LKQ - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.