LKQ (NASDAQ:LKQ) Sets New 52-Week Low - Here's Why

Key Points

• LKQ Corporation's stock reached a new 12-month low at $29.91, closing at $30.12, indicating significant market pressure.
• Recent earnings reports showed the company missed estimates, posting $0.87 EPS against the expected $0.93, while revenues were slightly up at $3.64 billion.
• While analysts maintain a consensus rating of "Moderate Buy" with an average target price of $51.40, some ratings have been downgraded recently, reflecting mixed market sentiment.

LKQ Corporation (NASDAQ:LKQ - Get Free Report)'s stock price hit a new 52-week low during mid-day trading on Wednesday . The company traded as low as $29.91 and last traded at $30.12, with a volume of 2954876 shares traded. The stock had previously closed at $30.47.

Wall Street Analyst Weigh In

LKQ has been the topic of a number of analyst reports. Robert W. Baird decreased their target price on shares of LKQ from $48.00 to $42.00 and set an "outperform" rating on the stock in a research report on Friday, July 25th. Wall Street Zen downgraded shares of LKQ from a "buy" rating to a "hold" rating in a report on Wednesday, May 21st. Finally, Barrington Research reaffirmed an "outperform" rating and set a $60.00 price target on shares of LKQ in a report on Tuesday, July 22nd. One research analyst has rated the stock with a hold rating and five have assigned a buy rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $51.40.

LKQ Stock Performance

The stock's 50-day moving average is $37.60 and its 200-day moving average is $39.37. The firm has a market capitalization of $7.64 billion, a price-to-earnings ratio of 10.87 and a beta of 0.95. The company has a current ratio of 1.81, a quick ratio of 0.69 and a debt-to-equity ratio of 0.19.

LKQ (NASDAQ:LKQ - Get Free Report) last announced its quarterly earnings results on Thursday, July 24th. The auto parts company reported $0.87 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.93 by ($0.06). LKQ had a net margin of 5.04% and a return on equity of 13.85%. The business had revenue of $3.64 billion during the quarter, compared to analyst estimates of $3.62 billion. During the same quarter last year, the company posted $0.98 earnings per share. The company's revenue was down 1.6% compared to the same quarter last year. On average, analysts predict that LKQ Corporation will post 3.57 EPS for the current fiscal year.

LKQ Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, August 28th. Stockholders of record on Thursday, August 14th will be paid a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 4.0%. The ex-dividend date of this dividend is Thursday, August 14th. LKQ's dividend payout ratio is currently 43.96%.

Institutional Investors Weigh In On LKQ

A number of institutional investors have recently modified their holdings of LKQ. Fuller & Thaler Asset Management Inc. bought a new position in LKQ during the fourth quarter worth $165,548,000. EdgePoint Investment Group Inc. bought a new position in LKQ during the fourth quarter worth $160,339,000. Boston Partners boosted its stake in LKQ by 258.0% during the first quarter. Boston Partners now owns 4,562,625 shares of the auto parts company's stock worth $194,089,000 after acquiring an additional 3,288,048 shares in the last quarter. Ancora Advisors LLC boosted its stake in LKQ by 95.7% during the first quarter. Ancora Advisors LLC now owns 5,477,467 shares of the auto parts company's stock worth $233,011,000 after acquiring an additional 2,678,964 shares in the last quarter. Finally, Clarkston Capital Partners LLC bought a new position in LKQ during the fourth quarter worth $91,678,000. 95.63% of the stock is owned by institutional investors.

LKQ Company Profile

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.