LKQ Corporation (NASDAQ:LKQ) Receives Consensus Rating of "Hold" from Brokerages

Key Points

• Analysts hold a mixed view of LKQ: six analysts give the stock a consensus “Hold” rating, with two sells, one hold and three buys. The average 12-month price target is $31.08 versus a recent price of $25.62.
• LKQ’s latest quarterly results missed expectations, with EPS of $0.67 versus $0.71 forecast and revenue of $3.41 billion versus $3.48 billion expected. Revenue declined 3% year over year, while the stock remains near the lower end of its 52-week range.
• The company declared a quarterly dividend of $0.30, equivalent to $1.20 annually and a 4.7% yield. Institutional ownership is high at 95.63%, with several major investors recently establishing or expanding positions.

Shares of LKQ Corporation (NASDAQ:LKQ - Get Free Report) have received a consensus recommendation of "Hold" from the six analysts that are presently covering the company, MarketBeat Ratings reports. Two investment analysts have rated the stock with a sell recommendation, one has assigned a hold recommendation and three have assigned a buy recommendation to the company. The average twelve-month target price among brokers that have issued ratings on the stock in the last year is $31.0833.

Several analysts recently issued reports on the company. Barclays reduced their price target on LKQ from $30.00 to $25.00 and set an "equal weight" rating for the company in a research note on Monday, August 3rd. Raymond James Financial set a $30.00 price target on shares of LKQ in a research note on Friday, July 31st. JPMorgan Chase & Co. dropped their price objective on shares of LKQ from $37.00 to $30.00 and set an "overweight" rating for the company in a research note on Friday, July 31st. Roth Capital set a $35.00 price objective on shares of LKQ in a report on Monday, August 3rd. Finally, Zacks Research lowered shares of LKQ from a "hold" rating to a "strong sell" rating in a research report on Monday, August 3rd.

LKQ Stock Performance

Shares of LKQ stock traded down $0.15 during midday trading on Monday, hitting $25.62. 69,141 shares of the company were exchanged, compared to its average volume of 2,925,977. LKQ has a 52 week low of $21.17 and a 52 week high of $37.13. The firm has a market capitalization of $6.48 billion, a P/E ratio of 14.23 and a beta of 0.84. The firm's 50 day moving average price is $25.41 and its two-hundred day moving average price is $28.21. 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 (NASDAQ:LKQ - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The auto parts company reported $0.67 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.71 by ($0.04). LKQ had a return on equity of 10.84% and a net margin of 3.37%.The company had revenue of $3.41 billion for the quarter, compared to analyst estimates of $3.48 billion. During the same quarter last year, the business earned $0.87 earnings per share. The company's revenue was down 3.0% on a year-over-year basis. LKQ has set its FY 2026 guidance at 2.600-2.900 EPS. As a group, equities research analysts anticipate that LKQ will post 2.67 earnings per share for the current year.

LKQ Announces Dividend

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

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in LKQ. BlackRock Inc. purchased a new position in LKQ in the second quarter valued at about $1,015,096,000. Pzena Investment Management LLC purchased a new position in LKQ in the second quarter valued at approximately $398,696,000. California State Teachers Retirement System grew its holdings in LKQ by 2,498.6% during the second quarter. California State Teachers Retirement System now owns 7,786,940 shares of the auto parts company's stock valued at $205,030,000 after purchasing an additional 7,487,277 shares during the period. Nykredit A S purchased a new stake in LKQ in the second quarter worth $84,795,000. Finally, Bank of New York Mellon Corp bought a new stake in shares of LKQ in the second quarter valued at $76,343,000. Institutional investors own 95.63% of the company's stock.

About LKQ

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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