LKQ (NASDAQ:LKQ) Lowered to "Strong Sell" Rating by Zacks Research

Key Points

• Zacks Research downgraded LKQ to “strong sell” from “hold,” while the broader analyst consensus remains “hold” with an average price target of $31.08.
• LKQ shares opened at $24.49, near the lower end of their 52-week range, after other analysts also reduced price targets, including Barclays and JPMorgan.
• LKQ’s latest quarterly results missed expectations: adjusted EPS was $0.67 versus $0.71 expected, revenue was $3.41 billion versus $3.48 billion forecast, and revenue fell 3% year over year.

LKQ (NASDAQ:LKQ - Get Free Report) was downgraded by research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued on Monday,Zacks.com reports.

Other equities analysts also recently issued reports about the stock. Barclays dropped their target price on shares of LKQ from $30.00 to $25.00 and set an "equal weight" rating for the company in a research note on Monday. Weiss Ratings restated a "hold (c-)" rating on shares of LKQ in a research report on Friday. Robert W. Baird set a $30.00 price objective on LKQ in a research report on Friday. Roth Capital set a $35.00 target price on LKQ in a research report on Monday. Finally, JPMorgan Chase & Co. cut their price target on LKQ from $37.00 to $30.00 and set an "overweight" rating on the stock in a research note on Friday, July 31st. Three equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $31.08.

LKQ Price Performance

Shares of LKQ stock opened at $24.49 on Monday. LKQ has a 52 week low of $21.17 and a 52 week high of $37.13. The stock has a market capitalization of $6.20 billion, a PE ratio of 13.61 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. The stock's fifty day moving average is $25.64 and its 200-day moving average is $28.97.

LKQ (NASDAQ:LKQ - Get Free Report) last released its quarterly 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 business had revenue of $3.41 billion during the quarter, compared to the consensus estimate of $3.48 billion. LKQ had a net margin of 3.37% and a return on equity of 10.84%. The business's quarterly revenue was down 3.0% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.87 earnings per share. LKQ has set its FY 2026 guidance at 2.600-2.900 EPS. Equities research analysts expect that LKQ will post 2.68 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in LKQ. Captrust Financial Advisors increased its holdings in LKQ by 0.4% in the third quarter. Captrust Financial Advisors now owns 84,939 shares of the auto parts company's stock valued at $2,594,000 after purchasing an additional 377 shares during the last quarter. Harbor Investment Advisory LLC boosted its holdings in LKQ by 260.0% during the first quarter. Harbor Investment Advisory LLC now owns 900 shares of the auto parts company's stock worth $26,000 after buying an additional 650 shares during the last quarter. Root Financial Partners LLC boosted its holdings in LKQ by 142.4% during the first quarter. Root Financial Partners LLC now owns 1,217 shares of the auto parts company's stock worth $36,000 after buying an additional 715 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in shares of LKQ by 2.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 31,476 shares of the auto parts company's stock worth $1,339,000 after buying an additional 807 shares during the period. Finally, Cedar Mountain Advisors LLC bought a new stake in shares of LKQ in the 1st quarter valued at about $28,000. 95.63% of the stock is currently owned by institutional investors.

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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