LKQ Corporation $LKQ Stock Position Lifted by Leeward Investments LLC MA

Key Points

• Leeward Investments significantly increased its LKQ stake by 321.1% in the third quarter, ending with 1.08 million shares valued at approximately $24.7 million. Institutional investors collectively own 95.63% of the company.
• LKQ’s preliminary third-quarter results missed expectations: revenue fell to about $3.32 billion, while adjusted EPS was projected at $0.47–$0.53 versus an estimated $0.69. The company withdrew its full-year 2026 guidance, citing major disruptions in its European operations.
• LKQ is undertaking a leadership and operational reset. Salvatore A. Abbate will become CEO, Alvarez & Marsal was hired to advise on Europe, and complete third-quarter results are due October 29; shares recently traded near $17.42, close to their 12-month low.

Leeward Investments LLC MA grew its position in LKQ Corporation (NASDAQ:LKQ - Free Report) by 321.1% in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 1,083,743 shares of the auto parts company's stock after buying an additional 826,362 shares during the quarter. LKQ makes up approximately 1.2% of Leeward Investments LLC MA's portfolio, making the stock its 13th largest position. Leeward Investments LLC MA owned approximately 0.43% of LKQ worth $24,742,000 at the end of the most recent reporting period.

Other institutional investors have also made changes to their positions in the company. Signaturefd LLC grew its position in LKQ by 4.3% during the 3rd quarter. Signaturefd LLC now owns 110,944 shares of the auto parts company's stock worth $2,533,000 after purchasing an additional 4,589 shares in the last quarter. Evergreen Capital Management LLC purchased a new stake in shares of LKQ in the third quarter valued at $499,000. Murphy Pohlad Asset Management LLC lifted its holdings in shares of LKQ by 32.7% in the third quarter. Murphy Pohlad Asset Management LLC now owns 12,425 shares of the auto parts company's stock valued at $284,000 after purchasing an additional 3,062 shares in the last quarter. Tectonic Advisors LLC boosted its position in shares of LKQ by 9.9% in the third quarter. Tectonic Advisors LLC now owns 218,363 shares of the auto parts company's stock worth $4,985,000 after buying an additional 19,732 shares during the period. Finally, Studio Investment Management LLC boosted its position in shares of LKQ by 9.6% in the third quarter. Studio Investment Management LLC now owns 44,229 shares of the auto parts company's stock worth $1,010,000 after buying an additional 3,864 shares during the period. 95.63% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting LKQ

Here are the key news stories impacting LKQ this week:

• Positive Sentiment: New CEO appointed: Salvatore A. Abbate, described as an experienced distribution executive, will become president and CEO on December 15, potentially improving execution and providing a fresh start. LKQ appoints Salvatore A. Abbate as CEO
• Positive Sentiment: Turnaround support added: LKQ retained Alvarez & Marsal to advise on its European operations, which could accelerate corrective actions related to execution and profitability. LKQ preliminary third-quarter results and operational actions
• Neutral Sentiment: Full results pending: LKQ plans to release complete third-quarter results on October 29, which should provide more detail on the European disruption and the company’s recovery plans.
• Negative Sentiment: Preliminary results missed expectations: Revenue was approximately $3.32 billion, down from $3.50 billion a year earlier and below the roughly $3.4 billion consensus. LKQ expects a net loss of $16 million to $32 million and adjusted diluted EPS of $0.47–$0.53, versus an analyst estimate near $0.69. LKQ preliminary Q3 results
• Negative Sentiment: Europe is the primary problem: European parts-and-services organic revenue fell 9.8%, reflecting an ERP implementation disruption in Germany and lower volumes in the United Kingdom and Benelux. The segment’s expected EBITDA margin was only 4.1%–5.1%.
• Negative Sentiment: Visibility has weakened: LKQ withdrew its full-year 2026 financial guidance. CEO Justin Jude and LKQ Europe chief Andy Hamilton also departed, increasing uncertainty during the turnaround. LKQ pulls 2026 guidance and names new CEO
• Negative Sentiment: Analyst sentiment deteriorated: Barrington Research downgraded LKQ from “outperform” to “market perform.” A law firm also announced an investigation into whether investors were misled about European operations and the German software rollout.

LKQ Price Performance

LKQ stock opened at $17.42 on Monday. LKQ Corporation has a twelve month low of $17.21 and a twelve month high of $37.13. The company has a debt-to-equity ratio of 0.52, a quick ratio of 0.61 and a current ratio of 1.58. The firm has a market cap of $4.41 billion, a PE ratio of 9.68 and a beta of 0.87. The firm's 50 day moving average price is $23.56 and its two-hundred day moving average price is $25.64.

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

LKQ Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 3rd. Investors of record on Thursday, August 20th were issued a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a dividend yield of 6.9%. The ex-dividend date was Thursday, August 20th. LKQ's dividend payout ratio (DPR) is currently 66.67%.

Analyst Ratings Changes

LKQ has been the topic of a number of research analyst reports. Robert W. Baird set a $30.00 price target on LKQ in a report on Friday, July 31st. Weiss Ratings downgraded LKQ from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Thursday, August 13th. Zacks Research lowered LKQ from a "hold" rating to a "strong sell" rating in a research report on Monday, August 3rd. Barclays decreased their price objective on LKQ from $30.00 to $25.00 and set an "equal weight" rating for the company in a research report on Monday, August 3rd. Finally, Roth Capital set a $35.00 target price on LKQ in a research note on Monday, August 3rd. Four research analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, LKQ currently has a consensus rating of "Hold" and an average price target of $30.50.

LKQ Company Profile

LKQ Corporation is a global distributor of automotive parts and accessories. The company supplies replacement parts, components and equipment to professional repair shops, collision-repair businesses, insurers, dealerships and other commercial customers. Its product offerings include recycled original-equipment parts, aftermarket parts, specialty vehicle products, tools and equipment.

LKQ's operations include the procurement, dismantling and distribution of salvaged vehicles, allowing it to provide recycled engines, transmissions, body panels and other components.

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