LKQ Sees Unusually High Options Volume (NASDAQ:LKQ)

LKQ Corporation (NASDAQ:LKQ) was the target of unusually large options trading on Monday. Investors acquired 29,165 put options on the company. This represents an increase of 2,198% compared to the typical daily volume of 1,269 put options.

Wall Street Analysts Forecast Growth

Several analysts have recently commented on LKQ shares. Stephens decreased their target price on LKQ from $39.00 to $36.50 and set an “overweight” rating on the stock in a report on Tuesday, July 21st. JPMorgan Chase & Co. cut their price target on LKQ from $22.00 to $20.00 and set an “overweight” rating on the stock in a research note on Friday, October 30th. Raymond James Financial set a $30.00 price target on LKQ in a research note on Friday, July 31st. Roth Capital downgraded shares of LKQ from a “buy” rating to a “neutral” rating and lowered their target price for the company from $35.00 to $18.00 in a research note on Monday, October 26th. Finally, Barrington Research cut LKQ from an “outperform” rating to a “market perform” rating in a research note on Friday, October 23rd. Five equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $26.07.

LKQ Price Performance

Shares of LKQ opened at $19.26 on Wednesday. The business’s 50 day moving average price is $22.52 and its two-hundred day moving average price is $27.08. LKQ has a 52-week low of $16.85 and a 52-week high of $37.13. The firm has a market cap of $4.86 billion, a PE ratio of 8.20 and a beta of 0.87. The company has a debt-to-equity ratio of 0.58, a quick ratio of 0.67 and a current ratio of 1.75.

LKQ (NASDAQ:LKQ) last issued its quarterly earnings data on Thursday, October 29th. The auto parts company reported $0.50 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.58 by ($0.08). LKQ had a return on equity of 9.57% and a net margin of 1.89%. The business had revenue of $3.32 billion during the quarter, compared to analysts’ expectations of $3.36 billion. The company’s quarterly revenue was down 5.1% on a year-over-year basis. During the same quarter last year, the business posted $0.84 EPS. On average, equities analysts anticipate that LKQ will post 2.22 EPS for the current year.

LKQ Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 3rd. Shareholders of record on Thursday, November 19th will be issued a dividend of $0.30 per share. The ex-dividend date of this dividend is Thursday, November 19th. This represents a $1.20 annualized dividend and a yield of 6.2%. LKQ’s payout ratio is currently 120.00%.

More LKQ News

Here are the key news stories impacting LKQ this week:

• Positive Sentiment: Two directors disclosed substantial stock purchases: Andrew Clarke bought 21,800 shares for about $400,000, while Michael Scott Powell bought 10,000 shares for about $191,500. Insider buying may signal confidence, though it does not guarantee a recovery. SEC filing for Andrew Clarke purchase SEC filing for Michael Scott Powell purchase
• Negative Sentiment: Reported consensus price targets were cut, including a 16.53% reduction to $27.19 and a separate 17.48% reduction to €24.15. Lower targets suggest analysts have become more cautious about LKQ’s outlook. Report on dollar price target Report on euro price target
• Negative Sentiment: Several law firms announced investigations into possible securities-law violations, based on allegations that LKQ may have provided materially misleading business information. These are investigations, not findings of wrongdoing, but the headlines could weigh on sentiment. Block & Leviton investigation announcement Rosen Law investigation announcement
• Negative Sentiment: Unusual options activity included 29,165 put options purchased—about 22 times typical volume—pointing to elevated hedging or bearish positioning.

Insider Activity

In related news, Director Michael Scott Powell bought 10,000 shares of the stock in a transaction on Monday, November 2nd. The shares were purchased at an average price of $19.15 per share, with a total value of $191,500.00. Following the purchase, the director owned 20,998 shares in the company, valued at approximately $402,111.70. This represents a 90.93% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Andrew Clarke bought 21,800 shares of the business’s stock in a transaction that occurred on Friday, October 30th. The shares were acquired at an average cost of $18.35 per share, with a total value of $400,030.00. Following the completion of the purchase, the director owned 56,850 shares of the company’s stock, valued at approximately $1,043,197.50. The trade was a 62.20% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Company insiders own 0.38% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Ethic Inc. raised its position in LKQ by 35.1% in the third quarter. Ethic Inc. now owns 10,606 shares of the auto parts company’s stock valued at $242,000 after purchasing an additional 2,757 shares during the period. Commonwealth Equity Services LLC boosted its holdings in shares of LKQ by 8.0% in the third quarter. Commonwealth Equity Services LLC now owns 12,275 shares of the auto parts company’s stock valued at $280,000 after acquiring an additional 911 shares during the period. Bfsg LLC grew its position in LKQ by 38.1% in the 3rd quarter. Bfsg LLC now owns 16,256 shares of the auto parts company’s stock valued at $371,000 after buying an additional 4,486 shares during the last quarter. Pzena Investment Management LLC boosted its position in shares of LKQ by 49.0% during the 3rd quarter. Pzena Investment Management LLC now owns 22,556,858 shares of the auto parts company’s stock worth $514,973,000 after purchasing an additional 7,414,573 shares in the last quarter. Finally, Salomon & Ludwin LLC acquired a new position in LKQ during the third quarter worth $61,000. 95.63% of the stock is currently owned by institutional investors.

LKQ Company Profile

LKQ Corporation is a global distributor of automotive parts and accessories. The company supplies replacement parts, components and equipment to professional repair shops, collision-repair businesses, insurers, dealerships and other commercial customers. Its product offerings include recycled original-equipment parts, aftermarket parts, specialty vehicle products, tools and equipment.

LKQ’s operations include the procurement, dismantling and distribution of salvaged vehicles, allowing it to provide recycled engines, transmissions, body panels and other components.