Zacks Investment Research upgraded shares of LKQ (NASDAQ:LKQ) from a sell rating to a hold rating in a report released on Tuesday.
According to Zacks, “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.”
LKQ has been the subject of several other reports. William Blair lowered shares of LKQ from an outperform rating to a market perform rating in a report on Friday, January 18th. BidaskClub lowered shares of LKQ from a hold rating to a sell rating in a report on Thursday, January 24th. Barrington Research reaffirmed a buy rating on shares of LKQ in a report on Friday, December 14th. ValuEngine lowered shares of LKQ from a sell rating to a strong sell rating in a report on Friday, February 8th. Finally, TheStreet lowered shares of LKQ from a b- rating to a c+ rating in a report on Tuesday, October 23rd. Two analysts have rated the stock with a sell rating, three have given a hold rating and five have assigned a buy rating to the stock. LKQ currently has an average rating of Hold and a consensus target price of $41.00.
LKQ announced that its board has approved a share repurchase program on Thursday, October 25th that authorizes the company to buyback $500.00 million in outstanding shares. This buyback authorization authorizes the auto parts company to repurchase up to 5.8% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s management believes its shares are undervalued.
In other LKQ news, EVP John S. Quinn sold 9,806 shares of the business’s stock in a transaction dated Tuesday, January 15th. The shares were sold at an average price of $26.56, for a total transaction of $260,447.36. Following the sale, the executive vice president now directly owns 253,578 shares in the company, valued at approximately $6,735,031.68. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. 0.80% of the stock is currently owned by insiders.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. SG Americas Securities LLC increased its position in shares of LKQ by 0.6% in the fourth quarter. SG Americas Securities LLC now owns 67,203 shares of the auto parts company’s stock worth $1,595,000 after acquiring an additional 394 shares in the last quarter. ETF Managers Group LLC increased its position in shares of LKQ by 15.8% in the fourth quarter. ETF Managers Group LLC now owns 3,436 shares of the auto parts company’s stock worth $82,000 after acquiring an additional 468 shares in the last quarter. LPL Financial LLC increased its position in shares of LKQ by 1.8% in the fourth quarter. LPL Financial LLC now owns 36,962 shares of the auto parts company’s stock worth $877,000 after acquiring an additional 646 shares in the last quarter. Oregon Public Employees Retirement Fund increased its position in shares of LKQ by 2.1% in the fourth quarter. Oregon Public Employees Retirement Fund now owns 34,611 shares of the auto parts company’s stock worth $821,000 after acquiring an additional 697 shares in the last quarter. Finally, Daiwa Securities Group Inc. increased its position in shares of LKQ by 6.0% in the fourth quarter. Daiwa Securities Group Inc. now owns 12,418 shares of the auto parts company’s stock worth $295,000 after acquiring an additional 700 shares in the last quarter. Institutional investors and hedge funds own 90.82% 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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