LKQ (LKQ) Raised to Strong-Buy at Zacks Investment Research

LKQ (NASDAQ:LKQ) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a research report issued to clients and investors on Friday. The brokerage currently has a $37.00 price objective on the auto parts company’s stock. Zacks Investment Research‘s price target points to a potential upside of 14.23% from the stock’s current price.

According to Zacks, “LKQ Corp. has been growing its footprint through organic expansion and acquisitions. In May 2017, the company completed the acquisition of German-based Stahlgruber, thus, strengthening its position in Europe. Further, the company is lowering its operational costs by changing the pay for sales reps from commission basis to a more customer-centric basis. Also, its focus on the aftermarket defends the company from cyclical nature of the automotive industry. Over the past year, LKQ Corp. has outperformed the industry it belongs to.”

Several other analysts also recently commented on the company. BidaskClub raised LKQ from a “sell” rating to a “hold” rating in a research note on Thursday, March 22nd. SunTrust Banks initiated coverage on LKQ in a research note on Tuesday, May 29th. They set a “buy” rating and a $40.00 price objective for the company. Guggenheim initiated coverage on LKQ in a research note on Tuesday, April 17th. They set a “neutral” rating for the company. Wellington Shields raised LKQ from a “hold” rating to an “accumulate” rating in a research note on Monday, April 30th. Finally, ValuEngine downgraded LKQ from a “buy” rating to a “hold” rating in a research note on Friday, April 27th. One investment analyst has rated the stock with a sell rating, two have given a hold rating, twelve have assigned a buy rating and one has given a strong buy rating to the stock. LKQ has a consensus rating of “Buy” and a consensus target price of $43.50.

Shares of LKQ traded up $0.26, reaching $32.39, during trading hours on Friday, according to MarketBeat.com. The stock had a trading volume of 19,386 shares, compared to its average volume of 2,148,536. The stock has a market cap of $9.84 billion, a PE ratio of 17.23, a price-to-earnings-growth ratio of 0.93 and a beta of 1.03. The company has a quick ratio of 1.11, a current ratio of 2.74 and a debt-to-equity ratio of 0.72. LKQ has a fifty-two week low of $29.60 and a fifty-two week high of $43.86.

LKQ (NASDAQ:LKQ) last announced its earnings results on Thursday, April 26th. The auto parts company reported $0.55 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.59 by ($0.04). The firm had revenue of $2.72 billion during the quarter, compared to analyst estimates of $2.62 billion. LKQ had a net margin of 5.44% and a return on equity of 14.52%. The firm’s revenue for the quarter was up 16.1% compared to the same quarter last year. During the same period last year, the company earned $0.49 earnings per share. sell-side analysts anticipate that LKQ will post 2.27 earnings per share for the current year.

In related news, Director Robert M. Hanser sold 1,099 shares of the firm’s stock in a transaction that occurred on Wednesday, May 9th. The stock was sold at an average price of $30.30, for a total value of $33,299.70. Following the completion of the transaction, the director now directly owns 10,984 shares of the company’s stock, valued at approximately $332,815.20. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP Justin L. Jude acquired 2,280 shares of the company’s stock in a transaction that occurred on Friday, June 1st. The stock was purchased at an average cost of $32.58 per share, with a total value of $74,282.40. Following the completion of the purchase, the senior vice president now directly owns 66,729 shares in the company, valued at $2,174,030.82. The disclosure for this purchase can be found here. Over the last three months, insiders have bought 6,780 shares of company stock valued at $221,747. Company insiders own 0.80% of the company’s stock.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in LKQ. Captrust Financial Advisors acquired a new stake in LKQ during the 4th quarter valued at $108,000. IFP Advisors Inc grew its holdings in LKQ by 605.9% during the 1st quarter. IFP Advisors Inc now owns 3,614 shares of the auto parts company’s stock valued at $137,000 after buying an additional 3,102 shares during the last quarter. We Are One Seven LLC acquired a new stake in LKQ during the 4th quarter valued at $197,000. Point72 Asia Hong Kong Ltd grew its holdings in LKQ by 4,221.7% during the 1st quarter. Point72 Asia Hong Kong Ltd now owns 4,970 shares of the auto parts company’s stock valued at $189,000 after buying an additional 4,855 shares during the last quarter. Finally, Virtu Financial LLC acquired a new stake in LKQ during the 4th quarter valued at $215,000. 90.66% of the stock is owned by hedge funds and other institutional investors.

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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