Canada Pension Plan Investment Board Acquires Shares of 1,809,700 LKQ Corporation $LKQ

Key Points

• Canada Pension Plan Investment Board acquired 1.81 million LKQ shares worth approximately $47.6 million, joining other institutions that increased their positions. Institutional investors now own 95.63% of the company.
• LKQ reported weaker-than-expected quarterly results, with EPS of $0.67 versus the $0.71 consensus and revenue of $3.41 billion, down 3% year over year. The stock opened at $25.36, near its 12-month low, while analysts’ consensus rating was “Hold” with a $31.08 target price.
• LKQ declared a quarterly dividend of $0.30 per share, equivalent to $1.20 annually and a 4.7% yield; its payout ratio is 66.67%.

Canada Pension Plan Investment Board bought a new position in LKQ Corporation (NASDAQ:LKQ - Free Report) in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm bought 1,809,700 shares of the auto parts company's stock, valued at approximately $47,649,000. Canada Pension Plan Investment Board owned 0.72% of LKQ at the end of the most recent reporting period.

Other institutional investors have also made changes to their positions in the company. BlackRock Inc. purchased a new stake in shares of LKQ in the 2nd quarter valued at approximately $1,015,096,000. Seizert Capital Partners LLC boosted its stake in LKQ by 30.1% in the 4th quarter. Seizert Capital Partners LLC now owns 2,178,703 shares of the auto parts company's stock worth $65,797,000 after purchasing an additional 503,998 shares during the period. Applied Finance Capital Management LLC grew its position in LKQ by 11.0% during the 1st quarter. Applied Finance Capital Management LLC now owns 662,216 shares of the auto parts company's stock worth $19,449,000 after purchasing an additional 65,534 shares in the last quarter. Rice Hall James & Associates LLC acquired a new stake in LKQ during the 2nd quarter valued at $17,859,000. Finally, Lakewood Capital Management LP acquired a new stake in LKQ during the 2nd quarter valued at $6,977,000. 95.63% of the stock is owned by hedge funds and other institutional investors.

LKQ Stock Down 1.5%

LKQ stock opened at $25.36 on Friday. LKQ Corporation 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. The company has a market cap of $6.42 billion, a price-to-earnings ratio of 14.09 and a beta of 0.84. The company has a 50 day moving average of $25.39 and a two-hundred day moving average of $27.97.

LKQ (NASDAQ:LKQ - Get Free Report) last posted its quarterly earnings results 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). LKQ had a net margin of 3.37% and a return on equity of 10.84%. The company had revenue of $3.41 billion for the quarter, compared to analysts' expectations of $3.48 billion. During the same quarter in the prior year, the firm earned $0.87 earnings per share. The company's revenue was down 3.0% on a year-over-year basis. LKQ has set its FY 2026 guidance at 2.600-2.900 EPS. On average, equities analysts anticipate that LKQ Corporation will post 2.67 earnings per share for the current fiscal year.

LKQ Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 3rd. Investors of record on Thursday, August 20th will be given a dividend of $0.30 per share. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $1.20 dividend on an annualized basis and a yield of 4.7%. LKQ's dividend payout ratio (DPR) is presently 66.67%.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on LKQ shares. Zacks Research lowered LKQ from a "hold" rating to a "strong sell" rating in a report on Monday, August 3rd. Robert W. Baird set a $30.00 price target on LKQ in a research report on Friday, July 31st. Barclays dropped their price target on LKQ from $30.00 to $25.00 and set an "equal weight" rating on the stock in a research report on Monday, August 3rd. JPMorgan Chase & Co. decreased their price objective on LKQ from $37.00 to $30.00 and set an "overweight" rating for the company in a research report on Friday, July 31st. Finally, Raymond James Financial set a $30.00 target price on LKQ in a research note on Friday, July 31st. Three equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $31.08.

LKQ Profile

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.

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