LKQ (LKQ) Lifted to “Hold” at Zacks Investment Research

Zacks Investment Research upgraded shares of LKQ (NASDAQ:LKQ) from a sell rating to a hold rating in a report issued on Wednesday.

According to Zacks, “LKQ Corp’s third-quarter earnings came in line with the Zacks Consensus Estimate while revenues beat the same. LKQ Corporation focuses on growing its footprint through organic expansion and acquisitions. The acquisition of Stahlgruber GmbH allowed LKQ to spread out its existence in the European countries.  Also, LKQ Corporation is witnessing a strong revenue growth in the Parts and services. In the first nine-months of 2018, the figure increased 5.1% year over year. However, global organic revenue growth from parts and services are likely to decline marginally in the fourth quarter. High expenditure due to fluctuating prices of fuel, scrap metal and other commodities and product recall are adding to the company’s selling, general and administrative expenses, which will hurt its margins.”

A number of other brokerages have also recently weighed in on LKQ. ValuEngine upgraded shares of LKQ from a sell rating to a hold rating in a report on Wednesday, August 29th. Barrington Research restated a buy rating and issued a $45.00 price objective on shares of LKQ in a report on Monday, October 22nd. BidaskClub cut shares of LKQ from a sell rating to a strong sell rating in a report on Wednesday, September 26th. TheStreet cut shares of LKQ from a b- rating to a c+ rating in a report on Tuesday, October 23rd. Finally, Raymond James cut their price objective on shares of LKQ from $40.00 to $35.00 and set a buy rating on the stock in a report on Wednesday, October 10th. Two equities research analysts have rated the stock with a sell rating, two have given a hold rating and ten have issued a buy rating to the stock. LKQ has an average rating of Buy and an average price target of $43.25.

LKQ traded down $0.36 during midday trading on Wednesday, reaching $26.30. The company’s stock had a trading volume of 37,205 shares, compared to its average volume of 2,645,286. The stock has a market cap of $8.48 billion, a PE ratio of 13.93, a price-to-earnings-growth ratio of 0.80 and a beta of 1.28. The company has a debt-to-equity ratio of 0.87, a quick ratio of 1.04 and a current ratio of 2.65. LKQ has a 1 year low of $25.35 and a 1 year high of $43.86.

LKQ (NASDAQ:LKQ) last announced its quarterly earnings data on Thursday, October 25th. The auto parts company reported $0.56 earnings per share for the quarter, hitting the Zacks’ consensus estimate of $0.56. The business had revenue of $3.12 billion for the quarter, compared to analysts’ expectations of $3.12 billion. LKQ had a net margin of 5.01% and a return on equity of 14.55%. Equities research analysts predict that LKQ will post 2.21 EPS for the current year.

LKQ announced that its board has approved a share buyback plan on Thursday, October 25th that permits the company to buyback $500.00 million in outstanding shares. This buyback authorization permits the auto parts company to reacquire up to 5.8% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s leadership believes its stock is undervalued.

In other news, insider Dominick P. Zarcone purchased 2,000 shares of the business’s stock in a transaction dated Friday, October 26th. The shares were purchased at an average price of $26.55 per share, for a total transaction of $53,100.00. Following the completion of the acquisition, the insider now directly owns 259,080 shares in the company, valued at approximately $6,878,574. The purchase was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, VP Varun Laroyia purchased 1,000 shares of the business’s stock in a transaction dated Friday, October 26th. The shares were purchased at an average price of $26.50 per share, for a total transaction of $26,500.00. Following the acquisition, the vice president now owns 75,673 shares of the company’s stock, valued at $2,005,334.50. The disclosure for this purchase can be found here. Corporate insiders own 0.80% of the company’s stock.

Several large investors have recently bought and sold shares of LKQ. Capital World Investors purchased a new stake in shares of LKQ during the third quarter valued at approximately $288,862,000. FMR LLC grew its holdings in shares of LKQ by 157.2% during the third quarter. FMR LLC now owns 5,072,636 shares of the auto parts company’s stock valued at $160,650,000 after buying an additional 3,100,431 shares during the last quarter. Thompson Siegel & Walmsley LLC purchased a new stake in shares of LKQ during the second quarter valued at approximately $62,981,000. Partner Fund Management L.P. purchased a new stake in shares of LKQ during the third quarter valued at approximately $43,719,000. Finally, American Century Companies Inc. grew its holdings in shares of LKQ by 65.4% during the second quarter. American Century Companies Inc. now owns 3,102,685 shares of the auto parts company’s stock valued at $98,976,000 after buying an additional 1,226,523 shares during the last quarter. Hedge funds and other institutional investors own 90.09% of the company’s stock.

LKQ Company Profile

LKQ Corporation, together with its subsidiaries, distributes replacement parts, components, and systems used in the repair and maintenance of vehicles in North America, Europe, and Taiwan. It operates in three segments: North America, Europe, and Specialty. The company distributes bumper covers, automotive body panels, and lights, as well as automotive glass products, such as windshields; 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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