LKQ Target of Unusually Large Options Trading (NASDAQ:LKQ)

LKQ Corporation (NASDAQ:LKQ) was the recipient of some unusual options trading activity on Tuesday. Investors bought 4,123 call options on the company. This represents an increase of approximately 176% compared to the average volume of 1,493 call options.

Analysts Set New Price Targets

LKQ has been the subject of several research reports. Roth Capital reiterated a “buy” rating and issued a $43.00 price target (down from $46.00) on shares of LKQ in a research note on Monday, November 3rd. Barclays started coverage on LKQ in a report on Tuesday, November 11th. They set an “equal weight” rating and a $33.00 price target for the company. Weiss Ratings reiterated a “sell (d+)” rating on shares of LKQ in a report on Monday, December 1st. Finally, Zacks Research raised LKQ from a “strong sell” rating to a “hold” rating in a research report on Monday, October 13th. Four equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $45.40.

LKQ Stock Performance

Shares of LKQ stock traded down $0.23 during trading on Tuesday, hitting $28.64. 904,946 shares of the company’s stock were exchanged, compared to its average volume of 2,782,532. LKQ has a 52-week low of $28.42 and a 52-week high of $44.82. The company has a debt-to-equity ratio of 0.55, a quick ratio of 0.67 and a current ratio of 1.60. The stock has a market capitalization of $7.33 billion, a price-to-earnings ratio of 10.62 and a beta of 0.91. The business has a 50-day simple moving average of $30.14 and a 200-day simple moving average of $33.07.

LKQ (NASDAQ:LKQ) last issued its quarterly earnings data on Thursday, October 30th. The auto parts company reported $0.84 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.74 by $0.10. The business had revenue of $3.50 billion during the quarter, compared to analysts’ expectations of $3.54 billion. LKQ had a return on equity of 13.45% and a net margin of 4.99%.The company’s revenue for the quarter was up 1.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.88 EPS. LKQ has set its FY 2025 guidance at 3.000-3.150 EPS. On average, research analysts forecast that LKQ will post 3.57 EPS for the current year.

LKQ Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, December 4th. Stockholders of record on Thursday, November 20th were paid a dividend of $0.30 per share. The ex-dividend date of this dividend was Thursday, November 20th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 4.2%. LKQ’s dividend payout ratio (DPR) is presently 44.44%.

Hedge Funds Weigh In On LKQ

Several large investors have recently made changes to their positions in LKQ. Dynamic Technology Lab Private Ltd purchased a new stake in LKQ in the 1st quarter worth $418,000. Redwood Investment Management LLC purchased a new position in LKQ during the first quarter valued at $1,670,000. Focus Partners Wealth grew its position in shares of LKQ by 32.3% in the first quarter. Focus Partners Wealth now owns 198,250 shares of the auto parts company’s stock valued at $8,434,000 after purchasing an additional 48,450 shares during the period. Kayne Anderson Rudnick Investment Management LLC increased its stake in shares of LKQ by 72.9% during the first quarter. Kayne Anderson Rudnick Investment Management LLC now owns 113,585 shares of the auto parts company’s stock worth $4,832,000 after purchasing an additional 47,905 shares in the last quarter. Finally, Raymond James Financial Inc. raised its position in shares of LKQ by 42.6% during the 1st quarter. Raymond James Financial Inc. now owns 1,566,454 shares of the auto parts company’s stock worth $66,637,000 after purchasing an additional 468,132 shares during the last quarter. 95.63% of the stock is currently owned by institutional investors and hedge funds.

LKQ Company Profile

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.