EdgePoint Investment Group Inc. Acquires 528,350 Shares of LKQ Corporation $LKQ

Key Points

• EdgePoint Investment Group Inc. increased its stake in LKQ Corporation by 12.1%, owning approximately 4.89 million shares valued at $208 million, making it the firm's 21st largest investment.
• Several hedge funds significantly boosted their positions in LKQ, with Boston Partners increasing its stake by 258% and Ancora Advisors by 95.7% in the first quarter of 2023.
• LKQ announced a quarterly dividend of $0.30, yielding 3.8%, and reported earnings per share of $0.87 for the last quarter, missing analysts' estimates.

EdgePoint Investment Group Inc. boosted its holdings in shares of LKQ Corporation (NASDAQ:LKQ - Free Report) by 12.1% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 4,891,329 shares of the auto parts company's stock after purchasing an additional 528,350 shares during the quarter. LKQ comprises 1.7% of EdgePoint Investment Group Inc.'s portfolio, making the stock its 21st biggest holding. EdgePoint Investment Group Inc. owned 1.89% of LKQ worth $208,077,000 as of its most recent SEC filing.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Boston Partners grew its holdings in LKQ by 258.0% during the 1st quarter. Boston Partners now owns 4,562,625 shares of the auto parts company's stock valued at $194,089,000 after buying an additional 3,288,048 shares in the last quarter. Ancora Advisors LLC grew its holdings in LKQ by 95.7% during the 1st quarter. Ancora Advisors LLC now owns 5,477,467 shares of the auto parts company's stock valued at $233,011,000 after buying an additional 2,678,964 shares in the last quarter. Eminence Capital LP purchased a new position in LKQ during the 4th quarter valued at approximately $68,944,000. D. E. Shaw & Co. Inc. grew its holdings in LKQ by 336.4% during the 4th quarter. D. E. Shaw & Co. Inc. now owns 1,432,724 shares of the auto parts company's stock valued at $52,653,000 after buying an additional 1,104,431 shares in the last quarter. Finally, Engine Capital Management LP grew its holdings in LKQ by 263.1% during the 4th quarter. Engine Capital Management LP now owns 1,396,614 shares of the auto parts company's stock valued at $51,326,000 after buying an additional 1,012,000 shares in the last quarter. Institutional investors own 95.63% of the company's stock.

LKQ Trading Up 0.7%

Shares of LKQ stock traded up $0.23 on Monday, reaching $32.61. The company had a trading volume of 2,566,959 shares, compared to its average volume of 2,775,136. The firm has a market cap of $8.39 billion, a price-to-earnings ratio of 11.95 and a beta of 0.90. The company has a debt-to-equity ratio of 0.19, a current ratio of 1.81 and a quick ratio of 0.69. The firm's 50-day moving average price is $33.60 and its two-hundred day moving average price is $38.08. LKQ Corporation has a 1 year low of $28.92 and a 1 year high of $44.82.

LKQ (NASDAQ:LKQ - Get Free Report) last announced its earnings results on Thursday, July 24th. The auto parts company reported $0.87 EPS for the quarter, missing analysts' consensus estimates of $0.93 by ($0.06). The company had revenue of $3.64 billion during the quarter, compared to analysts' expectations of $3.62 billion. LKQ had a return on equity of 13.85% and a net margin of 5.04%.LKQ's revenue for the quarter was down 1.6% compared to the same quarter last year. During the same quarter last year, the firm posted $0.98 EPS. LKQ has set its FY 2025 guidance at 3.000-3.30 EPS. As a group, research analysts predict that LKQ Corporation will post 3.57 earnings per share for the current fiscal year.

LKQ Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, August 28th. Investors of record on Thursday, August 14th were paid a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a dividend yield of 3.7%. The ex-dividend date of this dividend was Thursday, August 14th. LKQ's dividend payout ratio (DPR) is currently 43.96%.

Analysts Set New Price Targets

Several equities analysts have weighed in on the company. Robert W. Baird cut their price target on LKQ from $48.00 to $42.00 and set an "outperform" rating for the company in a report on Friday, July 25th. Wall Street Zen cut LKQ from a "buy" rating to a "hold" rating in a report on Wednesday, May 21st. Finally, Barrington Research restated an "outperform" rating and set a $60.00 price target on shares of LKQ in a report on Tuesday, July 22nd. Five research analysts have rated the stock with a Buy rating, Based on data from MarketBeat, the company presently has a consensus rating of "Buy" and an average target price of $51.40.

LKQ Profile

LKQ Corporation engages in the distribution of replacement parts, components, and systems used in the repair and maintenance of vehicles and specialty vehicle aftermarket products and accessories. It operates through four segments: Wholesale-North America, Europe, Specialty, and Self Service. The company distributes bumper covers, automotive body panels, and lights, as well as mechanical automotive parts and accessories; salvage products, including mechanical and collision parts comprising engines; transmissions; door assemblies; sheet metal products, such as trunk lids, fenders, and hoods; lights and bumper assemblies; scrap metal and other materials to metals recyclers; and brake pads, discs and sensors, clutches, steering and suspension products, filters, and oil and automotive fluids, as well as electrical products, including spark plugs and batteries.