LKQ Sees Unusually Large Options Volume (NASDAQ:LKQ)

Key Points

• Unusual bearish options activity: Investors purchased 29,165 LKQ put options, 2,198% above the typical daily volume of 1,269 contracts.
• Analyst sentiment is mixed: LKQ’s average rating is “Hold” with a $26.07 price target, while recent analysts both downgraded and upgraded the stock. Shares traded up 6.0% to $19.67.
• Quarterly results missed expectations: LKQ reported $0.50 in earnings per share versus the $0.58 consensus estimate, while revenue fell 5.1% year over year to $3.32 billion. The company also announced a $0.30 quarterly dividend, representing a 6.1% yield.

LKQ Corporation (NASDAQ:LKQ - Get Free Report) saw some unusual options trading activity on Monday. Stock investors bought 29,165 put options on the stock. This represents an increase of 2,198% compared to the typical daily volume of 1,269 put options.

Analysts Set New Price Targets

Several equities research analysts have issued reports on the stock. Roth Capital cut shares of LKQ from a "buy" rating to a "neutral" rating and lowered their price objective for the company from $35.00 to $18.00 in a research report on Monday, October 26th. JPMorgan Chase & Co. lowered their price target on shares of LKQ from $22.00 to $20.00 and set an "overweight" rating on the stock in a report on Friday. Barclays upgraded LKQ from an "equal weight" rating to an "overweight" rating and set a $25.00 price target for the company in a research note on Monday, October 26th. Barrington Research downgraded LKQ from an "outperform" rating to a "market perform" rating in a research report on Friday, October 23rd. Finally, Raymond James Financial set a $30.00 price objective on shares of LKQ in a research note on Friday, July 31st. Five investment analysts have rated the stock with a Buy rating, two have given a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $26.07.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of LKQ. Bfsg LLC grew its holdings in LKQ by 38.1% during the third quarter. Bfsg LLC now owns 16,256 shares of the auto parts company's stock worth $371,000 after acquiring an additional 4,486 shares during the period. Pzena Investment Management LLC grew its holdings in LKQ by 49.0% in the 3rd quarter. Pzena Investment Management LLC now owns 22,556,858 shares of the auto parts company's stock valued at $514,973,000 after buying an additional 7,414,573 shares during the period. Salomon & Ludwin LLC acquired a new position in shares of LKQ during the 3rd quarter valued at about $61,000. One Way Holdings LLC acquired a new position in shares of LKQ during the 3rd quarter valued at about $10,983,000. Finally, Mirae Asset Global Investments Co. Ltd. acquired a new stake in shares of LKQ in the third quarter worth approximately $87,000. 95.63% of the stock is currently owned by hedge funds and other institutional investors.

LKQ Trading Up 6.0%

Shares of NASDAQ LKQ traded up $1.11 during midday trading on Monday, reaching $19.67. 1,491,182 shares of the stock were exchanged, compared to its average volume of 3,227,992. The stock has a market capitalization of $4.96 billion, a P/E ratio of 19.70 and a beta of 0.87. The company has a debt-to-equity ratio of 0.58, a quick ratio of 0.67 and a current ratio of 1.75. LKQ has a twelve month low of $16.85 and a twelve month high of $37.13. The company has a 50 day simple moving average of $22.76 and a 200 day simple moving average of $27.22.

LKQ (NASDAQ:LKQ - Get Free Report) last released its quarterly earnings results on Thursday, October 29th. The auto parts company reported $0.50 EPS for the quarter, missing analysts' consensus estimates of $0.58 by ($0.08). The firm had revenue of $3.32 billion for the quarter, compared to analyst estimates of $3.36 billion. LKQ had a return on equity of 9.57% and a net margin of 1.89%. The firm's revenue for the quarter was down 5.1% on a year-over-year basis. During the same quarter last year, the company earned $0.84 earnings per share. As a group, equities analysts expect that LKQ will post 2.26 earnings per share for the current year.

LKQ Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, December 3rd. Investors of record on Thursday, November 19th will be given a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 6.1%. The ex-dividend date of this dividend is Thursday, November 19th. LKQ's dividend payout ratio (DPR) is 120.00%.

LKQ Company Profile

LKQ Corporation is a global distributor of automotive parts and accessories. The company supplies replacement parts, components and equipment to professional repair shops, collision-repair businesses, insurers, dealerships and other commercial customers. Its product offerings include recycled original-equipment parts, aftermarket parts, specialty vehicle products, tools and equipment.

LKQ's operations include the procurement, dismantling and distribution of salvaged vehicles, allowing it to provide recycled engines, transmissions, body panels and other components.

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