Roth Capital Provides Insights on LKQ's Second Quarter Earnings (NASDAQ:LKQ)

February 23, 2025 11:29 PM PST | By Team Kalkine Media

Roth Capital Provides Insights on LKQ's Second Quarter Earnings (NASDAQ:LKQ) — Image source: Shutterstock

Broker Ratings

Broker reports have presented a mixed analysis of LKQ's future prospects. Barrington Research revalidated its "outperform" stance, setting a price objective at $60.00. Conversely, StockNews.com altered its stance from "buy" to "hold," reflecting a more cautious outlook. However, encouraging prospects are suggested by JPMorgan Chase & Co., which elevated its price target from $48.00 to $49.00, offering an "overweight" rating. With one analyst recommending a "hold" and five advocating a "buy," LKQ has an average rating of "Moderate Buy" and an average price target of $52.60, according to MarketBeat.

Stock Performance and Financial Metrics

As of the most recent data, LKQ shares opened at $40.49, contributing to a market capitalization of $10.53 billion. The company's financial health is robust, with a PE ratio of 15.45 and a beta of 1.29. Notably, LKQ's liquidity appears stable with a quick ratio of 0.67 and a current ratio of 1.71, paired with a debt-to-equity ratio of 0.68. Throughout the past 52 weeks, LKQ shares fluctuated between $35.56 and $53.68.

Quarterly Earnings and Dividend

The latest quarterly report revealed an EPS of $0.80, surpassing analyst expectations of $0.76. LKQ's revenue was $3.36 billion, slightly below the anticipated $3.42 billion. The company's return on equity was recorded at 14.93%, and a net margin of 4.81% was maintained. In line with financial returns, LKQ declared a dividend of $0.30 per share, aggregating to an annual yield of 2.96% and a payout ratio of 45.80%.

Insider Transactions and Institutional Interest

Recent insider activity includes the sale of 10,000 shares by Director Dominick P. Zarcone, reducing his stake by 2.71%. Institutional investors have shown tangible interest, with substantial purchases noted in recent quarters. Notably, institutions like Blue Trust Inc., IFM Investors Pty Ltd, Assenagon Asset Management S.A., and others have increased their holdings, driving up institutional ownership to 95.63%.

LKQ Corporation operates as a leading distributor of automotive replacement parts and accessories, managing operations across segments including Wholesale-North America, Europe, Specialty, and Self Service. The firm's product range spans collision parts, mechanical components, and vehicle aftermarket products, serving a broad clientele that underscores its market position.

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