LKQ (NASDAQ:LKQ) Reaches New 1-Year Low - Should You Sell?

Key Points

• LKQ Corporation's stock has reached a new 52-week low, trading at $28.91, indicating potential investor concerns about its performance.
• A range of analysts have adjusted their price targets for LKQ, with Robert W. Baird lowering its target from $48.00 to $42.00, while Barrington Research maintains a target of $60.00.
• The company recently reported a quarterly revenue of $3.64 billion, slightly above expectations, but its EPS of $0.87 fell short of the consensus estimate of $0.93.

LKQ Corporation (NASDAQ:LKQ - Get Free Report)'s stock price reached a new 52-week low on Friday . The stock traded as low as $28.91 and last traded at $28.96, with a volume of 1095148 shares trading hands. The stock had previously closed at $29.31.

Analysts Set New Price Targets

A number of equities analysts have issued reports on the stock. Robert W. Baird cut their price objective on shares of LKQ from $48.00 to $42.00 and set an "outperform" rating on the stock in a report on Friday, July 25th. Barrington Research reaffirmed an "outperform" rating and set a $60.00 price objective on shares of LKQ in a report on Tuesday, July 22nd. Finally, Weiss Ratings reaffirmed a "hold (c-)" rating on shares of LKQ in a report on Wednesday. Four equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $49.50.

LKQ Stock Performance

The company has a 50-day moving average price of $31.05 and a two-hundred day moving average price of $36.32. The stock has a market capitalization of $7.43 billion, a P/E ratio of 10.59 and a beta of 0.84. The company has a quick ratio of 0.69, a current ratio of 1.81 and a debt-to-equity ratio of 0.19.

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

LKQ Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, August 28th. Shareholders of record on Thursday, August 14th were given a $0.30 dividend. The ex-dividend date was Thursday, August 14th. This represents a $1.20 annualized dividend and a yield of 4.2%. LKQ's payout ratio is presently 43.96%.

Institutional Trading of LKQ

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Janney Montgomery Scott LLC bought a new stake in LKQ in the first quarter valued at approximately $321,000. Goodman Financial Corp raised its holdings in shares of LKQ by 2.8% during the first quarter. Goodman Financial Corp now owns 317,305 shares of the auto parts company's stock valued at $13,498,000 after acquiring an additional 8,502 shares in the last quarter. Teacher Retirement System of Texas bought a new position in shares of LKQ during the first quarter valued at approximately $1,618,000. PNC Financial Services Group Inc. raised its holdings in shares of LKQ by 20.0% during the first quarter. PNC Financial Services Group Inc. now owns 65,319 shares of the auto parts company's stock valued at $2,779,000 after acquiring an additional 10,909 shares in the last quarter. Finally, Amalgamated Bank raised its holdings in shares of LKQ by 1.6% during the first quarter. Amalgamated Bank now owns 50,851 shares of the auto parts company's stock valued at $2,163,000 after acquiring an additional 801 shares in the last quarter. Institutional investors own 95.63% of the company's stock.

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.

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