Zacks Investment Research downgraded shares of LKQ (NASDAQ:LKQ) from a hold rating to a sell rating in a report released on Wednesday, December 27th.
According to Zacks, “Fluctuating prices of fuel, scrap metal and other commodities besides frequent acquisitions might lead to rising costs for LKQ Corp., thereby hampering its financials. LKQ Corp’s gross margins are under pressure due to its recent acquisitions. However, LKQ Corp has outperformed the industry it belongs to in the last three months. The company's earnings and revenues beat the Zacks Consensus Estimate in the third quarter. Compared with the year-ago figures, the company’s earnings per share were in line, whereas the revenues were higher. The company expects positive growth in organic sales in fiscal 2017.”
A number of other equities research analysts have also recently issued reports on the stock. Robert W. Baird restated a buy rating and set a $47.00 price target on shares of LKQ in a report on Friday, December 22nd. BidaskClub upgraded shares of LKQ from a hold rating to a buy rating in a research note on Friday, December 22nd. Jefferies Group reiterated a buy rating on shares of LKQ in a research note on Thursday, December 14th. B. Riley reiterated a buy rating and issued a $41.00 target price on shares of LKQ in a research note on Tuesday, December 12th. Finally, Stifel Nicolaus reissued a buy rating and issued a $44.00 price target on shares of LKQ in a research report on Monday, December 11th. Three research analysts have rated the stock with a hold rating and ten have given a buy rating to the company’s stock. The stock presently has an average rating of Buy and an average target price of $43.00.
LKQ (LKQ) opened at $43.47 on Wednesday. The stock has a market capitalization of $13,285.81, a price-to-earnings ratio of 27.17, a price-to-earnings-growth ratio of 1.26 and a beta of 0.97. LKQ has a twelve month low of $27.85 and a twelve month high of $43.65. The company has a debt-to-equity ratio of 0.75, a current ratio of 2.82 and a quick ratio of 1.10.
LKQ (NASDAQ:LKQ) last issued its quarterly earnings data on Thursday, October 26th. The auto parts company reported $0.45 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.42 by $0.03. LKQ had a net margin of 5.27% and a return on equity of 15.10%. The firm had revenue of $2.47 billion during the quarter, compared to analysts’ expectations of $2.35 billion. During the same period in the prior year, the company posted $0.41 earnings per share. LKQ’s revenue for the quarter was up 11.7% on a year-over-year basis. equities research analysts forecast that LKQ will post 1.89 EPS for the current fiscal year.
In other news, Director William M. Iv Webster sold 100,000 shares of the stock in a transaction that occurred on Friday, December 8th. The shares were sold at an average price of $40.02, for a total transaction of $4,002,000.00. Following the sale, the director now directly owns 119,222 shares of the company’s stock, valued at $4,771,264.44. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Michael S. Clark sold 7,500 shares of the firm’s stock in a transaction that occurred on Wednesday, December 13th. The shares were sold at an average price of $40.07, for a total transaction of $300,525.00. Following the completion of the transaction, the vice president now directly owns 61,860 shares in the company, valued at $2,478,730.20. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 132,500 shares of company stock valued at $5,223,025. Company insiders own 1.10% of the company’s stock.
A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Fairpointe Capital LLC lifted its stake in shares of LKQ by 9.0% in the second quarter. Fairpointe Capital LLC now owns 3,199,715 shares of the auto parts company’s stock valued at $105,430,000 after buying an additional 264,587 shares in the last quarter. Janus Henderson Group PLC increased its holdings in LKQ by 106.7% during the third quarter. Janus Henderson Group PLC now owns 2,508,044 shares of the auto parts company’s stock worth $90,264,000 after buying an additional 1,294,439 shares during the last quarter. Prudential Financial Inc. boosted its position in LKQ by 5.5% during the third quarter. Prudential Financial Inc. now owns 1,970,626 shares of the auto parts company’s stock worth $70,923,000 after purchasing an additional 103,110 shares during the period. Riverbridge Partners LLC boosted its position in LKQ by 1.1% during the third quarter. Riverbridge Partners LLC now owns 1,618,654 shares of the auto parts company’s stock worth $58,255,000 after purchasing an additional 16,860 shares during the period. Finally, New York State Common Retirement Fund boosted its position in LKQ by 0.8% during the second quarter. New York State Common Retirement Fund now owns 1,272,596 shares of the auto parts company’s stock worth $41,932,000 after purchasing an additional 9,599 shares during the period. 91.49% 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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