Stock Traders Buy Large Volume of Call Options on LKQ (NASDAQ:LKQ)

LKQ Corporation (NASDAQ:LKQ) was the recipient of unusually large options trading on Thursday. Stock traders bought 4,936 call options on the company. This is an increase of approximately 514% compared to the typical volume of 804 call options.

Wall Street Analysts Forecast Growth

Several analysts have commented on the stock. JPMorgan Chase & Co. decreased their price objective on shares of LKQ from $37.00 to $30.00 and set an “overweight” rating for the company in a research note on Friday, July 31st. Weiss Ratings lowered shares of LKQ from a “hold (c-)” rating to a “sell (d+)” rating in a report on Thursday, August 13th. Roth Capital set a $35.00 price objective on LKQ in a research note on Monday, August 3rd. Robert W. Baird set a $30.00 target price on LKQ in a report on Friday, July 31st. Finally, Zacks Research downgraded LKQ from a “hold” rating to a “strong sell” rating in a report on Monday, August 3rd. Three analysts have rated the stock with a Buy rating, one has given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average price target of $31.08.

LKQ Price Performance

Shares of NASDAQ:LKQ traded down $0.12 during trading on Thursday, reaching $22.71. 651,680 shares of the company’s stock traded hands, compared to its average volume of 2,965,310. The company has a quick ratio of 0.61, a current ratio of 1.58 and a debt-to-equity ratio of 0.52. LKQ has a fifty-two week low of $21.17 and a fifty-two week high of $37.13. The company has a 50-day simple moving average of $24.55 and a 200-day simple moving average of $26.49. The firm has a market cap of $5.75 billion, a PE ratio of 12.61 and a beta of 0.85.

LKQ (NASDAQ:LKQ) last issued its quarterly earnings results on Thursday, July 30th. The auto parts company reported $0.67 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.71 by ($0.04). LKQ had a return on equity of 10.84% and a net margin of 3.37%.The business had revenue of $3.41 billion for the quarter, compared to analysts’ expectations of $3.48 billion. During the same quarter in the prior year, the company posted $0.87 EPS. The business’s revenue for the quarter was down 3.0% compared to the same quarter last year. LKQ has set its FY 2026 guidance at 2.600-2.900 EPS. As a group, analysts predict that LKQ will post 2.67 earnings per share for the current year.

LKQ Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, September 3rd. Investors of record on Thursday, August 20th were paid a $0.30 dividend. The ex-dividend date of this dividend was Thursday, August 20th. This represents a $1.20 dividend on an annualized basis and a yield of 5.3%. LKQ’s dividend payout ratio (DPR) is currently 66.67%.

Hedge Funds Weigh In On LKQ

Large investors have recently added to or reduced their stakes in the stock. Harbor Investment Advisory LLC increased its stake in shares of LKQ by 260.0% during the first quarter. Harbor Investment Advisory LLC now owns 900 shares of the auto parts company’s stock worth $26,000 after purchasing an additional 650 shares in the last quarter. Root Financial Partners LLC lifted its position in shares of LKQ by 142.4% in the first quarter. Root Financial Partners LLC now owns 1,217 shares of the auto parts company’s stock valued at $36,000 after acquiring an additional 715 shares in the last quarter. Northwestern Mutual Wealth Management Co. purchased a new position in shares of LKQ in the second quarter valued at approximately $25,000. Cedar Mountain Advisors LLC acquired a new stake in shares of LKQ in the first quarter worth approximately $28,000. Finally, Global Retirement Partners LLC purchased a new stake in shares of LKQ during the second quarter worth approximately $25,000. 95.63% of the stock is currently owned by institutional investors and hedge funds.

About LKQ

LKQ Corporation (NASDAQ:LKQ) is a global distributor of replacement parts, components and accessories for automobiles, trucks and other vehicles. The company supplies collision and mechanical repair businesses, insurers, professional service providers, retailers and do-it-yourself customers with a broad range of products.

Its offerings include new aftermarket parts, recycled original-equipment parts, remanufactured and refurbished components, specialty vehicle equipment, tools and accessories.