LKQ (NASDAQ:LKQ) Reaches New 52-Week Low After Earnings Miss

LKQ Corporation (NASDAQ:LKQ - Get Free Report) shares hit a new 52-week low during trading on Thursday after the company announced weaker than expected quarterly earnings. The company traded as low as $30.06 and last traded at $30.86, with a volume of 7536397 shares changing hands. The stock had previously closed at $38.61.

The auto parts company reported $0.87 EPS for the quarter, missing the consensus estimate of $0.93 by ($0.06). LKQ had a net margin of 4.97% and a return on equity of 14.66%. The firm had revenue of $3.64 billion during the quarter, compared to the consensus estimate of $3.62 billion. During the same period in the previous year, the company posted $0.98 EPS. The firm's revenue for the quarter was down 1.6% on a year-over-year basis.

LKQ Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, August 28th. Investors of record on Thursday, August 14th will be issued a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a yield of 3.90%. LKQ's payout ratio is 44.78%.

Analyst Ratings Changes

A number of research firms have recently issued reports on LKQ. Barrington Research restated an "outperform" rating and set a $60.00 target price on shares of LKQ in a research note on Tuesday. Wall Street Zen lowered shares of LKQ from a "buy" rating to a "hold" rating in a research report on Wednesday, May 21st. One research analyst has rated the stock with a hold rating and five have assigned a buy rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $52.60.

Insider Activity at LKQ

In related news, CEO Justin L. Jude purchased 2,708 shares of the stock in a transaction dated Friday, April 25th. The stock was purchased at an average price of $36.99 per share, with a total value of $100,168.92. Following the transaction, the chief executive officer directly owned 280,777 shares in the company, valued at $10,385,941.23. This trade represents a 0.97% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Dominick P. Zarcone sold 5,000 shares of the business's stock in a transaction dated Thursday, May 1st. The shares were sold at an average price of $38.02, for a total value of $190,100.00. Following the sale, the director owned 316,135 shares of the company's stock, valued at approximately $12,019,452.70. This represents a 1.56% decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.55% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On LKQ

A number of institutional investors and hedge funds have recently added to or reduced their stakes in LKQ. Clarkston Capital Partners LLC acquired a new stake in LKQ during the 4th quarter valued at $91,678,000. Janney Montgomery Scott LLC acquired a new position in LKQ during the first quarter worth $321,000. Teacher Retirement System of Texas acquired a new position in shares of LKQ during the first quarter valued at about $1,618,000. Amalgamated Bank increased 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 worth $2,163,000 after buying an additional 801 shares in the last quarter. Finally, Aquatic Capital Management LLC boosted its stake in LKQ by 53.2% in the fourth quarter. Aquatic Capital Management LLC now owns 19,298 shares of the auto parts company's stock valued at $709,000 after acquiring an additional 6,698 shares during the last quarter. Institutional investors and hedge funds own 95.63% of the company's stock.

LKQ Trading Down 20.3%

The business's fifty day moving average is $38.88 and its 200 day moving average is $39.60. The firm has a market capitalization of $7.95 billion, a price-to-earnings ratio of 11.46 and a beta of 0.95. The company has a quick ratio of 0.56, a current ratio of 1.52 and a debt-to-equity ratio of 0.62.

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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