LKQ (LKQ) Downgraded to Hold at Zacks Investment Research
Zacks Investment Research lowered shares of LKQ (NASDAQ:LKQ) from a buy rating to a hold rating in a report released on Thursday.
According to Zacks, “The Zacks Consensus Estimate for LKQ Corp’s quarterly earnings estimate has been going down of late. In December, The company signed an agreement to acquire the German spare-parts distributor Stahlgruber. This acquisition is in sync with its strategy to expand its presence in Europe through acquisitions and new branch openings for counter sales and distribution centers. In third-quarter 2017, LKQ Corp acquired 11 companies. However, these frequent acquisitions are hampering its gross margin figures. Also, rising expenses due to fluctuating prices of fuel, scrap metal and other commodities and product recalls are few of the other concerns for the company. Also, over a month, the company has underperformed the industry it belongs to.”
Several other brokerages have also weighed in on LKQ. Stephens set a $50.00 price objective on LKQ and gave the stock a buy rating in a report on Tuesday. BidaskClub raised LKQ from a hold rating to a buy rating in a report on Friday, December 22nd. Robert W. Baird reissued a buy rating and set a $47.00 price objective on shares of LKQ in a report on Friday, December 22nd. B. Riley reissued a buy rating and set a $41.00 price objective on shares of LKQ in a report on Tuesday, December 12th. Finally, Stifel Nicolaus reissued a buy rating and set a $44.00 price objective on shares of LKQ in a report on Monday, December 11th. Four research analysts have rated the stock with a hold rating and ten have assigned a buy rating to the stock. The stock has a consensus rating of Buy and a consensus price target of $43.89.
LKQ (NASDAQ:LKQ) last announced its quarterly earnings data on Thursday, October 26th. The auto parts company reported $0.45 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.42 by $0.03. LKQ had a return on equity of 15.10% and a net margin of 5.27%. The company had revenue of $2.47 billion for the quarter, compared to analyst estimates of $2.35 billion. During the same quarter last year, the firm earned $0.41 EPS. LKQ’s revenue for the quarter was up 11.7% compared to the same quarter last year. equities research analysts anticipate that LKQ will post 1.89 EPS for the current fiscal year.
In related news, EVP John S. Quinn sold 10,301 shares of the business’s stock in a transaction on Wednesday, January 17th. The stock was sold at an average price of $43.24, for a total value of $445,415.24. Following the sale, the executive vice president now owns 296,765 shares of the company’s stock, valued at approximately $12,832,118.60. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, VP Victor M. Casini sold 25,000 shares of the business’s stock in a transaction on Thursday, October 26th. The shares were sold at an average price of $36.82, for a total value of $920,500.00. Following the completion of the sale, the vice president now directly owns 213,884 shares in the company, valued at approximately $7,875,208.88. The disclosure for this sale can be found here. In the last ninety days, insiders sold 142,801 shares of company stock worth $5,668,440. 1.10% of the stock is owned by insiders.
A number of hedge funds have recently made changes to their positions in LKQ. State of Alaska Department of Revenue boosted its stake in LKQ by 69.5% in the fourth quarter. State of Alaska Department of Revenue now owns 45,156 shares of the auto parts company’s stock worth $1,835,000 after purchasing an additional 18,510 shares in the last quarter. Frontier Capital Management Co. LLC boosted its stake in LKQ by 32.3% in the fourth quarter. Frontier Capital Management Co. LLC now owns 3,113,705 shares of the auto parts company’s stock worth $126,634,000 after purchasing an additional 760,466 shares in the last quarter. Oakbrook Investments LLC acquired a new position in LKQ in the fourth quarter worth $471,000. Schwab Charles Investment Management Inc. boosted its stake in LKQ by 5.0% in the fourth quarter. Schwab Charles Investment Management Inc. now owns 1,532,549 shares of the auto parts company’s stock worth $62,329,000 after purchasing an additional 72,342 shares in the last quarter. Finally, National Pension Service acquired a new position in LKQ in the fourth quarter worth $15,472,000. 91.53% of the stock is currently owned by institutional investors and hedge funds.
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LKQ Company Profile
LKQ Corporation (LKQ) is a distributor of vehicle products, including replacement parts, components and systems used in the repair and maintenance of vehicles, as well as specialty vehicle products and accessories, and automotive glass products. The Company’s segments include Wholesale-North America; Europe; Specialty, and Self Service.
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