LKQ (NASDAQ:LKQ) Sets New 1-Year Low - What's Next?

Key Points

• LKQ Corporation reached a new 52-week low of $28.92, down from a previous close of $29.75, with significant trading volume of 671,650 shares.
• Analysts have mixed ratings on LKQ, with the consensus being a "Moderate Buy" and an average price target of $51.40 despite recent downgrades.
• The company announced a quarterly dividend of $0.30 per share, representing a 4.1% dividend yield, payable on August 28th to shareholders on record by August 14th.

LKQ Corporation (NASDAQ:LKQ - Get Free Report) hit a new 52-week low during mid-day trading on Friday . The stock traded as low as $28.92 and last traded at $29.35, with a volume of 671650 shares trading hands. The stock had previously closed at $29.75.

Wall Street Analyst Weigh In

LKQ has been the subject of a number of recent analyst reports. Robert W. Baird cut their price target on shares of LKQ from $48.00 to $42.00 and set an "outperform" rating for the company in a 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 objective on shares of LKQ in a research report on Tuesday, July 22nd. One investment analyst has rated the stock with a hold rating and five have given a buy rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $51.40.

LKQ Trading Up 3.0%

The firm has a market capitalization of $7.75 billion, a PE ratio of 11.03 and a beta of 0.92. The company's 50-day moving average price is $36.10 and its 200-day moving average price is $38.95. The company has a debt-to-equity ratio of 0.19, a quick ratio of 0.69 and a current ratio of 1.81.

LKQ (NASDAQ:LKQ - Get Free Report) last announced its quarterly earnings results 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 company had revenue of $3.64 billion for the quarter, compared to analyst estimates of $3.62 billion. During the same quarter in the prior year, the business earned $0.98 earnings per share. LKQ's revenue was down 1.6% compared to the same quarter last year. On average, sell-side analysts expect that LKQ Corporation will post 3.57 earnings per share for the current year.

LKQ Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, August 28th. Investors of record on Thursday, August 14th will be paid a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a yield of 4.0%. The ex-dividend date is Thursday, August 14th. LKQ's dividend payout ratio (DPR) is currently 43.96%.

Institutional Investors Weigh In On LKQ

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Caitong International Asset Management Co. Ltd acquired a new position in LKQ in the first quarter valued at $30,000. Banque Cantonale Vaudoise acquired a new position in shares of LKQ during the first quarter worth about $40,000. Thurston Springer Miller Herd & Titak Inc. increased its stake in shares of LKQ by 226.4% during the second quarter. Thurston Springer Miller Herd & Titak Inc. now owns 1,100 shares of the auto parts company's stock worth $41,000 after acquiring an additional 763 shares during the period. UMB Bank n.a. increased its stake in shares of LKQ by 104.8% during the first quarter. UMB Bank n.a. now owns 977 shares of the auto parts company's stock worth $42,000 after acquiring an additional 500 shares during the period. Finally, Horizon Financial Services LLC acquired a new position in shares of LKQ during the first quarter worth about $42,000. 95.63% of the stock is currently owned by institutional investors and hedge funds.

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.