Formula Growth Ltd. Takes $1.11 Million Position in LKQ Corporation $LKQ

Key Points

• Formula Growth Ltd. acquired 42,300 LKQ shares during the second quarter, valued at approximately $1.11 million. Institutional investors and hedge funds collectively own 95.63% of the company.
• LKQ’s latest quarterly results fell short of expectations, with adjusted EPS of $0.67 versus the $0.71 consensus and revenue of $3.41 billion versus $3.48 billion expected. Revenue declined 3% year over year, while full-year EPS guidance was set at $2.60–$2.90.
• LKQ declared a quarterly dividend of $0.30 per share, equivalent to a 4.7% annualized yield. Analyst sentiment is mixed, with a consensus “Hold” rating and an average price target of $31.08 compared with the stock’s $25.36 price.

Formula Growth Ltd. purchased a new position in shares of LKQ Corporation (NASDAQ:LKQ - Free Report) in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund purchased 42,300 shares of the auto parts company's stock, valued at approximately $1,114,000.

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

LKQ Stock Down 1.5%

LKQ stock opened at $25.36 on Friday. The company has a market capitalization of $6.42 billion, a PE ratio of 14.09 and a beta of 0.84. The company has a debt-to-equity ratio of 0.52, a quick ratio of 0.61 and a current ratio of 1.58. LKQ Corporation has a fifty-two week low of $21.17 and a fifty-two week high of $37.13. The firm has a 50 day moving average price of $25.39 and a 200 day moving average price of $27.97.

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

LKQ Dividend Announcement

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

Analysts Set New Price Targets

LKQ has been the topic of a number of recent research reports. Zacks Research lowered shares of LKQ from a "hold" rating to a "strong sell" rating in a research report on Monday, August 3rd. Weiss Ratings lowered shares of LKQ from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Thursday, August 13th. Stephens lowered 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. JPMorgan Chase & Co. dropped their price target 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, Robert W. Baird set a $30.00 price target on LKQ in a report on Friday, July 31st. Three investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $31.08.

LKQ Company 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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