LKQ (LKQ) Downgraded to “Sell” at Zacks Investment Research

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Zacks Investment Research cut shares of LKQ (NASDAQ:LKQ) from a hold rating to a sell rating in a research report sent to investors on Wednesday.

According to Zacks, “In fourth-quarter, LKQ Corp’s earnings and revenues missed the Zack Consensus Estimate though both improving on a year over year basis. 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. However, 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.”

A number of other research analysts have also issued reports on the stock. BidaskClub upgraded shares of LKQ from a sell rating to a hold rating in a report on Wednesday, January 16th. William Blair downgraded shares of LKQ from an outperform rating to a market perform rating in a research note on Friday, January 18th. Barrington Research reaffirmed a buy rating on shares of LKQ in a research note on Tuesday, March 5th. Guggenheim raised shares of LKQ from a neutral rating to a buy rating and set a $33.00 price objective for the company in a research note on Wednesday, March 6th. Finally, ValuEngine downgraded shares of LKQ from a sell rating to a strong sell rating in a research note on Friday, February 8th. Three research analysts have rated the stock with a sell rating, one has given a hold rating and five have issued a buy rating to the company. LKQ presently has a consensus rating of Hold and an average target price of $38.00.

NASDAQ:LKQ opened at $28.36 on Wednesday. The stock has a market capitalization of $9.12 billion, a price-to-earnings ratio of 12.95, a PEG ratio of 0.93 and a beta of 1.27. The company has a debt-to-equity ratio of 0.87, a quick ratio of 1.00 and a current ratio of 2.67. LKQ has a 12-month low of $22.74 and a 12-month high of $39.51.

LKQ (NASDAQ:LKQ) last released its earnings results on Thursday, February 28th. The auto parts company reported $0.48 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.49 by ($0.01). The firm had revenue of $3 billion during the quarter, compared to analysts’ expectations of $3.02 billion. LKQ had a net margin of 4.04% and a return on equity of 14.59%. LKQ’s revenue for the quarter was up 21.5% on a year-over-year basis. During the same quarter last year, the company posted $0.41 earnings per share. Analysts forecast that LKQ will post 2.4 earnings per share for the current year.

In related news, EVP John S. Quinn sold 6,861 shares of the stock in a transaction that occurred on Friday, March 1st. The shares were sold at an average price of $27.63, for a total transaction of $189,569.43. Following the completion of the sale, the executive vice president now owns 241,563 shares of the company’s stock, valued at approximately $6,674,385.69. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, EVP John S. Quinn sold 9,806 shares of the stock in a transaction that occurred on Tuesday, January 15th. The stock was 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 of the company’s stock, valued at approximately $6,735,031.68. The disclosure for this sale can be found here. Corporate insiders own 0.80% of the company’s stock.

Institutional investors and hedge funds have recently bought and sold shares of the stock. CSat Investment Advisory L.P. increased its position in LKQ by 120.5% during the 4th quarter. CSat Investment Advisory L.P. now owns 1,290 shares of the auto parts company’s stock worth $31,000 after purchasing an additional 705 shares in the last quarter. Riverview Trust Co purchased a new position in LKQ in the 4th quarter worth approximately $34,000. Tributary Capital Management LLC purchased a new position in LKQ in the 4th quarter worth approximately $47,000. Enlightenment Research LLC purchased a new position in LKQ in the 4th quarter worth approximately $62,000. Finally, ETF Managers Group LLC boosted its holdings in LKQ by 15.8% in the 4th 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 during the period. 90.84% of the stock is owned by hedge funds and other institutional investors.

About LKQ

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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