LKQ Corporation $LKQ Stock: Private Management Group Inc. Increases Holdings

Key Points

• Private Management Group increased its LKQ stake by 29.9% in the third quarter, adding 467,962 shares to hold about 2.03 million shares, valued at $46.4 million. Directors also purchased shares, with insiders buying 41,595 shares over three months.
• LKQ missed quarterly earnings and revenue estimates: EPS was $0.50 versus $0.58 expected, while revenue of $3.32 billion fell 5.1% year over year.
• Analyst views were mixed, with a consensus “Hold” rating and $26.07 price target. LKQ declared a $0.30 quarterly dividend, equivalent to a 5.9% yield; its reported payout ratio was 120%.

Private Management Group Inc. raised its holdings in LKQ Corporation (NASDAQ:LKQ - Free Report) by 29.9% during the third quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 2,032,114 shares of the auto parts company's stock after purchasing an additional 467,962 shares during the quarter. LKQ accounts for approximately 1.2% of Private Management Group Inc.'s investment portfolio, making the stock its 9th biggest position. Private Management Group Inc. owned about 0.81% of LKQ worth $46,393,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently modified their holdings of the company. Commonwealth Equity Services LLC lifted its position in shares of LKQ by 8.0% during the 3rd quarter. Commonwealth Equity Services LLC now owns 12,275 shares of the auto parts company's stock worth $280,000 after buying an additional 911 shares during the last quarter. Northwestern Mutual Wealth Management Co. acquired a new stake in LKQ in the second quarter valued at about $25,000. Global Retirement Partners LLC bought a new position in LKQ in the second quarter valued at about $25,000. Thor Investment Management Inc. OH ADV grew its position in LKQ by 2.2% in the third quarter. Thor Investment Management Inc. OH ADV now owns 46,499 shares of the auto parts company's stock valued at $1,062,000 after acquiring an additional 981 shares during the last quarter. Finally, Essential Partners LLC acquired a new position in LKQ during the first quarter worth about $30,000. Institutional investors own 95.63% of the company's stock.

Wall Street Analyst Weigh In

A number of research firms have recently commented on LKQ. Stephens dropped their target price on shares of LKQ from $39.00 to $36.50 and set an "overweight" rating for the company in a report on Tuesday, July 21st. Zacks Research downgraded shares of LKQ from a "hold" rating to a "strong sell" rating in a research note on Monday, August 3rd. Weiss Ratings lowered shares of LKQ from a "sell (d+)" rating to a "sell (d)" rating in a research report on Monday, November 2nd. JPMorgan Chase & Co. cut their target price on shares of LKQ from $22.00 to $20.00 and set an "overweight" rating on the stock in a research report on Friday, October 30th. Finally, Robert W. Baird decreased their target price on shares of LKQ from $30.00 to $23.00 and set an "outperform" rating on the stock in a research note on Monday, October 26th. Five research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, LKQ presently has a consensus rating of "Hold" and a consensus target price of $26.07.

Insider Activity

In related news, Director Michael Scott Powell acquired 10,000 shares of the business's stock in a transaction dated Monday, November 2nd. The shares were bought at an average price of $19.15 per share, with a total value of $191,500.00. Following the transaction, the director directly owned 20,998 shares of the company's stock, valued at $402,111.70. This trade represents a 90.93% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Andrew C. Clarke bought 21,800 shares of the business's stock in a transaction that occurred on Friday, October 30th. The stock was purchased at an average price of $18.35 per share, for a total transaction of $400,030.00. Following the completion of the acquisition, the director owned 56,850 shares in the company, valued at $1,043,197.50. This represents a 62.20% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last three months, insiders have bought 41,595 shares of company stock valued at $792,621. 0.38% of the stock is currently owned by insiders.

LKQ Price Performance

LKQ stock opened at $20.41 on Tuesday. The company has a current ratio of 1.75, a quick ratio of 0.67 and a debt-to-equity ratio of 0.58. The company has a market capitalization of $5.15 billion, a PE ratio of 8.62 and a beta of 0.87. LKQ Corporation has a 12 month low of $16.85 and a 12 month high of $37.13. The stock has a 50-day moving average price of $22.11 and a two-hundred day moving average price of $26.82.

LKQ (NASDAQ:LKQ - Get Free Report) last released its quarterly earnings results on Thursday, October 29th. The auto parts company reported $0.50 earnings per share for the quarter, missing the consensus estimate of $0.58 by ($0.08). LKQ had a return on equity of 9.57% and a net margin of 1.89%. The firm had revenue of $3.32 billion for the quarter, compared to the consensus estimate of $3.36 billion. During the same quarter last year, the firm posted $0.84 earnings per share. The business's revenue for the quarter was down 5.1% on a year-over-year basis. Analysts expect that LKQ Corporation will post 2.21 EPS for the current year.

LKQ Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 3rd. Shareholders of record on Thursday, November 19th will be given a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 5.9%. The ex-dividend date is Thursday, November 19th. LKQ's payout ratio is 120.00%.

LKQ Profile

LKQ Corporation NASDAQ: LKQ distributes replacement parts, components and related products for vehicle repair and maintenance. Its offerings include recycled and refurbished parts, aftermarket products and original equipment manufacturer (OEM) parts, serving collision repair shops, mechanical repair businesses and other customers.

The company also supplies specialty automotive parts and accessories, including products for vehicle customization and performance. LKQ operates across North America and Europe, as well as in Taiwan.

Founded in 1998, LKQ grew through acquisitions and expanded from its North American roots into international markets.

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