LKQ (NASDAQ:LKQ) Shares Gap Down on Disappointing Earnings

LKQ Co. (NASDAQ:LKQ) shares gapped down prior to trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $48.93, but opened at $46.16. LKQ shares last traded at $42.64, with a volume of 946,710 shares changing hands.

The auto parts company reported $0.82 earnings per share for the quarter, missing analysts’ consensus estimates of $0.95 by ($0.13). The business had revenue of $3.70 billion for the quarter, compared to the consensus estimate of $3.76 billion. LKQ had a return on equity of 17.24% and a net margin of 6.75%. The company’s quarterly revenue was up 10.6% on a year-over-year basis. During the same period last year, the firm earned $1.04 earnings per share.

LKQ Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, May 30th. Investors of record on Thursday, May 16th will be paid a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a dividend yield of 2.77%. The ex-dividend date of this dividend is Wednesday, May 15th. LKQ’s dividend payout ratio (DPR) is 34.29%.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on the stock. Robert W. Baird decreased their price objective on shares of LKQ from $58.00 to $54.00 and set an “outperform” rating for the company in a report on Wednesday. Roth Mkm restated a “buy” rating and set a $65.00 price objective on shares of LKQ in a report on Tuesday. StockNews.com cut shares of LKQ from a “buy” rating to a “hold” rating in a report on Friday, February 23rd. Barrington Research restated an “outperform” rating and set a $60.00 price objective on shares of LKQ in a report on Friday, April 19th. Finally, JPMorgan Chase & Co. decreased their price objective on shares of LKQ from $65.00 to $63.00 and set an “overweight” rating for the company in a report on Thursday, January 25th. One investment analyst has rated the stock with a hold rating and five have assigned a buy rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $61.60.

Insider Activity

In other news, CEO Dominick P. Zarcone sold 200,000 shares of the company’s stock in a transaction that occurred on Friday, March 1st. The shares were sold at an average price of $51.97, for a total value of $10,394,000.00. Following the completion of the transaction, the chief executive officer now owns 386,522 shares in the company, valued at $20,087,548.34. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Corporate insiders own 0.45% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. OFI Invest Asset Management acquired a new position in LKQ during the third quarter worth $26,000. CVA Family Office LLC acquired a new position in LKQ during the fourth quarter worth $26,000. Private Trust Co. NA boosted its holdings in LKQ by 228.4% during the fourth quarter. Private Trust Co. NA now owns 647 shares of the auto parts company’s stock worth $31,000 after purchasing an additional 450 shares during the last quarter. NBC Securities Inc. acquired a new position in LKQ during the third quarter worth $34,000. Finally, Headinvest LLC acquired a new position in LKQ during the third quarter worth $34,000. Institutional investors and hedge funds own 95.63% of the company’s stock.

LKQ Price Performance

The company’s fifty day moving average is $51.08 and its 200 day moving average is $48.30. The firm has a market cap of $11.55 billion, a price-to-earnings ratio of 12.37 and a beta of 1.28. The company has a quick ratio of 0.53, a current ratio of 1.47 and a debt-to-equity ratio of 0.59.

About LKQ

LKQ Corporation engages in the distribution of replacement parts, components, and systems used in the repair and maintenance of vehicles and specialty vehicle aftermarket products and accessories. It operates through four segments: Wholesale-North America, Europe, Specialty, and Self Service. The company distributes bumper covers, automotive body panels, and lights, as well as mechanical automotive parts and accessories; 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.