Traders Buy High Volume of Call Options on LKQ (NASDAQ:LKQ)

Key Points

• Unusual options activity: Traders bought 4,936 LKQ call options, 514% above the typical volume of 804 contracts, signaling elevated interest in the stock.
• Institutional ownership remains high: Hedge funds and other institutions own 95.63% of LKQ, with several investors adding new or expanded positions during the second quarter.
• Shares remain under pressure: LKQ fell 0.5% to $22.71 after reporting quarterly EPS and revenue below analyst expectations. Analysts maintain a consensus “Hold” rating, with a $31.08 average price target, while the company offers a 5.3% dividend yield.

LKQ Corporation (NASDAQ:LKQ - Get Free Report) was the target of some unusual options trading on Thursday. Traders purchased 4,936 call options on the stock. This is an increase of 514% compared to the typical volume of 804 call options.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Tidal Investments LLC increased its holdings in shares of LKQ by 90.1% during the second quarter. Tidal Investments LLC now owns 320,735 shares of the auto parts company's stock valued at $8,445,000 after acquiring an additional 152,003 shares in the last quarter. WINTON GROUP Ltd purchased a new stake in LKQ during the 2nd quarter worth approximately $213,000. Engineers Gate Manager LP purchased a new position in shares of LKQ in the second quarter worth $3,438,000. Cidel Asset Management Inc. purchased a new stake in shares of LKQ during the second quarter valued at $200,000. Finally, Integrated Wealth Concepts LLC acquired a new position in shares of LKQ in the 2nd quarter valued at $106,000. 95.63% of the stock is currently owned by hedge funds and other institutional investors.

LKQ Stock Down 0.5%

Shares of LKQ traded down $0.12 during trading hours on Thursday, hitting $22.71. The company had a trading volume of 651,680 shares, compared to its average volume of 2,965,310. The company has a current ratio of 1.58, a quick ratio of 0.61 and a debt-to-equity ratio of 0.52. The company has a market capitalization of $5.75 billion, a PE ratio of 12.61 and a beta of 0.85. LKQ has a one year low of $21.17 and a one year high of $37.13. The company's fifty day moving average price is $24.55 and its two-hundred day moving average price is $26.49.

LKQ (NASDAQ:LKQ - Get Free Report) last posted its earnings results on Thursday, July 30th. The auto parts company reported $0.67 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.71 by ($0.04). LKQ had a net margin of 3.37% and a return on equity of 10.84%. The company had revenue of $3.41 billion during the quarter, compared to analysts' expectations of $3.48 billion. During the same quarter last year, the firm earned $0.87 EPS. LKQ's revenue for the quarter was down 3.0% on a year-over-year basis. LKQ has set its FY 2026 guidance at 2.600-2.900 EPS. As a group, equities analysts forecast that LKQ will post 2.67 earnings per share for the current fiscal year.

LKQ Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, September 3rd. Shareholders of record on Thursday, August 20th were issued a $0.30 dividend. This represents a $1.20 annualized dividend and a yield of 5.3%. The ex-dividend date of this dividend was Thursday, August 20th. LKQ's payout ratio is currently 66.67%.

Wall Street Analysts Forecast Growth

LKQ has been the topic of several analyst reports. Raymond James Financial set a $30.00 price target on shares of LKQ in a report on Friday, July 31st. Stephens dropped their price objective on LKQ from $39.00 to $36.50 and set an "overweight" rating for the company in a report on Tuesday, July 21st. Robert W. Baird set a $30.00 price target on shares of LKQ in a report on Friday, July 31st. Roth Capital set a $35.00 price objective on shares of LKQ in a research report on Monday, August 3rd. Finally, Zacks Research lowered LKQ from a "hold" rating to a "strong sell" rating in a report on Monday, August 3rd. Three analysts have rated the stock with a Buy rating, one has given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $31.08.

About LKQ

LKQ Corporation NASDAQ: LKQ is a global distributor of replacement parts, components and accessories for automobiles, trucks and other vehicles. The company supplies collision and mechanical repair businesses, insurers, professional service providers, retailers and do-it-yourself customers with a broad range of products.

Its offerings include new aftermarket parts, recycled original-equipment parts, remanufactured and refurbished components, specialty vehicle equipment, tools and accessories.

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