LKQ (NASDAQ:LKQ) Hits New 52-Week Low - What's Next?

Key Points

• LKQ shares hit a new 52-week low, trading as low as $18.50 after previously closing at $22.47, well below their 50-day and 200-day moving averages.
• Analyst sentiment is mixed: the stock has an average rating of “Hold” and a consensus price target of $30.58, while ratings include three Buys, one Hold, and two Sells.
• Recent results fell short of expectations, with quarterly EPS of $0.67 versus a $0.71 estimate and revenue down 3% year over year. LKQ continues to offer a $0.30 quarterly dividend, representing a 6.6% annualized yield.

LKQ Corporation (NASDAQ:LKQ - Get Free Report) shares reached a new 52-week low on Friday. The company traded as low as $18.50 and last traded at $17.7110, with a volume of 83,773 shares. The stock had previously closed at $22.47.

Wall Street Analyst Weigh In

Several analysts have issued reports on LKQ shares. Robert W. Baird set a $30.00 price objective on LKQ in a report on Friday, July 31st. Weiss Ratings downgraded shares of LKQ from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Thursday, August 13th. Raymond James Financial set a $30.00 price target on shares of LKQ in a research note on Friday, July 31st. JPMorgan Chase & Co. cut their price target on LKQ from $30.00 to $27.00 and set an "overweight" rating for the company in a research note on Thursday, October 8th. Finally, Roth Capital set a $35.00 price objective on shares of LKQ in a research report on Monday, August 3rd. Three equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $30.58.

LKQ Price Performance

The company has a market cap of $4.57 billion, a P/E ratio of 9.98 and a beta of 0.87. The company has a debt-to-equity ratio of 0.52, a quick ratio of 0.61 and a current ratio of 1.58. The stock has a 50-day simple moving average of $23.72 and a 200 day simple moving average of $25.72.

LKQ (NASDAQ:LKQ - Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The auto parts company reported $0.67 EPS for the quarter, missing analysts' consensus estimates of $0.71 by ($0.04). The business had revenue of $3.41 billion for the quarter, compared to the consensus estimate of $3.48 billion. LKQ had a return on equity of 10.84% and a net margin of 3.37%. LKQ's revenue was down 3.0% on a year-over-year basis. During the same period in the previous year, the business posted $0.87 earnings per share. LKQ has set its FY 2026 guidance at 2.600-2.900 EPS. On average, equities analysts expect that LKQ Corporation will post 2.65 EPS for the current year.

LKQ Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 3rd. Stockholders of record on Thursday, August 20th were issued a dividend of $0.30 per share. The ex-dividend date of this dividend was Thursday, August 20th. This represents a $1.20 annualized dividend and a dividend yield of 6.6%. LKQ's dividend payout ratio (DPR) is presently 66.67%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. acquired a new stake in shares of LKQ in the second quarter valued at approximately $1,015,096,000. Pzena Investment Management LLC bought a new stake in shares of LKQ during the 2nd quarter valued at $398,696,000. Nykredit A S bought a new position in shares of LKQ in the 2nd quarter worth $84,795,000. Bank of New York Mellon Corp acquired a new position in LKQ in the second quarter valued at about $76,343,000. Finally, Bank of America Corp DE acquired a new stake in shares of LKQ in the 2nd quarter valued at approximately $58,221,000. Institutional investors and hedge funds own 95.63% of the company's stock.

About LKQ

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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