Engine Capital Management LP Reduces Stake in LKQ Corporation $LKQ

Key Points

• Engine Capital Management LP decreased its holdings in LKQ Corporation by 9.3%, now owning approximately 1.27 million shares, which accounts for 10.2% of its portfolio.
• The company reported quarterly earnings of $0.87 per share, missing analyst estimates of $0.93, with a revenue of $3.64 billion, slightly higher than the expected $3.62 billion.
• LKQ recently announced a quarterly dividend of $0.30 per share, translating to an annualized dividend of $1.20, which offers a yield of 3.8%.

Engine Capital Management LP reduced its stake in LKQ Corporation (NASDAQ:LKQ - Free Report) by 9.3% in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 1,266,614 shares of the auto parts company's stock after selling 130,000 shares during the period. LKQ accounts for 10.2% of Engine Capital Management LP's holdings, making the stock its 2nd biggest holding. Engine Capital Management LP owned 0.49% of LKQ worth $53,882,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Dimensional Fund Advisors LP increased its position in shares of LKQ by 14.8% during the first quarter. Dimensional Fund Advisors LP now owns 6,003,769 shares of the auto parts company's stock worth $255,384,000 after acquiring an additional 771,829 shares in the last quarter. Ancora Advisors LLC grew its position in LKQ by 95.7% in the 1st quarter. Ancora Advisors LLC now owns 5,477,467 shares of the auto parts company's stock worth $233,011,000 after purchasing an additional 2,678,964 shares in the last quarter. Fuller & Thaler Asset Management Inc. grew its position in LKQ by 4.2% in the 1st quarter. Fuller & Thaler Asset Management Inc. now owns 4,692,421 shares of the auto parts company's stock worth $199,616,000 after purchasing an additional 187,713 shares in the last quarter. Boston Partners boosted its stake in LKQ by 258.0% in the first quarter. Boston Partners now owns 4,562,625 shares of the auto parts company's stock valued at $194,089,000 after acquiring an additional 3,288,048 shares during the last quarter. Finally, EdgePoint Investment Group Inc. purchased a new position in LKQ in the fourth quarter valued at about $160,339,000. 95.63% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

A number of analysts recently commented on the stock. Wall Street Zen cut shares of LKQ from a "buy" rating to a "hold" rating in a research note on Wednesday, May 21st. Robert W. Baird lowered their target price on shares of LKQ from $48.00 to $42.00 and set an "outperform" rating on the stock in a research note on Friday, July 25th. Finally, Barrington Research reiterated an "outperform" rating and issued a $60.00 target price on shares of LKQ in a research note on Tuesday, July 22nd. Five research analysts have rated the stock with a Buy rating, According to MarketBeat, the stock has an average rating of "Buy" and an average target price of $51.40.

LKQ Stock Performance

LKQ stock traded down $0.26 during midday trading on Tuesday, reaching $32.36. 3,306,726 shares of the company's stock traded hands, compared to its average volume of 2,777,658. The stock has a market cap of $8.32 billion, a P/E ratio of 11.85 and a beta of 0.90. LKQ Corporation has a 52-week low of $28.92 and a 52-week high of $44.82. The stock's 50-day moving average is $33.51 and its 200 day moving average is $38.02. The company has a current ratio of 1.81, a quick ratio of 0.69 and a debt-to-equity ratio of 0.19.

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

LKQ Announces Dividend

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

About LKQ

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.