Jefferies Financial Group Equities Analysts Decrease Earnings Estimates for LKQ Co. (LKQ)

LKQ Co. (NASDAQ:LKQ) – Analysts at Jefferies Financial Group cut their Q4 2018 earnings estimates for LKQ in a note issued to investors on Thursday, October 25th, according to Zacks Investment Research. Jefferies Financial Group analyst B. Jordan now expects that the auto parts company will post earnings of $0.50 per share for the quarter, down from their previous forecast of $0.56. Jefferies Financial Group also issued estimates for LKQ’s Q1 2019 earnings at $0.67 EPS, Q3 2019 earnings at $0.62 EPS and Q4 2019 earnings at $0.56 EPS.

LKQ (NASDAQ:LKQ) last posted its earnings results on Thursday, October 25th. The auto parts company reported $0.56 EPS for the quarter, hitting analysts’ consensus estimates of $0.56. LKQ had a return on equity of 14.55% and a net margin of 5.01%. The company had revenue of $3.12 billion for the quarter, compared to the consensus estimate of $3.12 billion.

LKQ has been the topic of a number of other reports. Zacks Investment Research downgraded LKQ from a “buy” rating to a “hold” rating in a research report on Wednesday, August 1st. Raymond James decreased their price objective on LKQ from $40.00 to $35.00 and set a “buy” rating on the stock in a research report on Wednesday, October 10th. ValuEngine downgraded LKQ from a “hold” rating to a “sell” rating in a research report on Thursday, August 23rd. TheStreet downgraded LKQ from a “b-” rating to a “c+” rating in a research report on Tuesday, October 23rd. Finally, BidaskClub downgraded LKQ from a “hold” rating to a “sell” rating in a research report on Wednesday, September 12th. Three analysts have rated the stock with a sell rating, one has assigned a hold rating and ten have assigned a buy rating to the stock. The stock currently has an average rating of “Buy” and an average price target of $43.25.

LKQ stock traded up $0.34 during midday trading on Monday, reaching $27.29. 1,768,334 shares of the company traded hands, compared to its average volume of 3,710,327. LKQ has a 52-week low of $25.35 and a 52-week high of $43.86. The company has a debt-to-equity ratio of 0.87, a current ratio of 2.65 and a quick ratio of 1.04. The company has a market cap of $8.58 billion, a PE ratio of 14.52, a price-to-earnings-growth ratio of 0.81 and a beta of 1.27.

A number of large investors have recently made changes to their positions in LKQ. Summit Trail Advisors LLC grew its stake in LKQ by 5,171.5% in the first quarter. Summit Trail Advisors LLC now owns 99,895 shares of the auto parts company’s stock worth $100,000 after purchasing an additional 98,000 shares in the last quarter. Piedmont Investment Advisors LLC bought a new position in LKQ in the second quarter worth approximately $115,000. Patriot Financial Group Insurance Agency LLC grew its stake in LKQ by 2,700.0% in the third quarter. Patriot Financial Group Insurance Agency LLC now owns 4,200 shares of the auto parts company’s stock worth $133,000 after purchasing an additional 4,050 shares in the last quarter. Assetmark Inc. grew its stake in LKQ by 7,663.0% in the second quarter. Assetmark Inc. now owns 4,192 shares of the auto parts company’s stock worth $134,000 after purchasing an additional 4,138 shares in the last quarter. Finally, Captrust Financial Advisors grew its stake in LKQ by 229.9% in the second quarter. Captrust Financial Advisors now owns 4,632 shares of the auto parts company’s stock worth $148,000 after purchasing an additional 3,228 shares in the last quarter. 87.79% of the stock is currently owned by institutional investors.

In other LKQ news, insider Dominick P. Zarcone purchased 2,000 shares of LKQ stock in a transaction dated Friday, October 26th. The shares were purchased at an average cost of $26.55 per share, for a total transaction of $53,100.00. Following the completion of the acquisition, the insider now owns 259,080 shares in the company, valued at approximately $6,878,574. The acquisition was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, VP Varun Laroyia purchased 1,000 shares of LKQ stock in a transaction dated Friday, October 26th. The stock was acquired at an average price of $26.50 per share, for a total transaction of $26,500.00. Following the completion of the acquisition, the vice president now owns 75,673 shares of the company’s stock, valued at approximately $2,005,334.50. The disclosure for this purchase can be found here. Corporate insiders own 0.80% of the company’s stock.

LKQ declared that its Board of Directors has initiated a stock repurchase program on Thursday, October 25th that permits the company to repurchase $500.00 million in outstanding shares. This repurchase authorization permits the auto parts company to buy up to 5.8% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s leadership believes its shares are undervalued.

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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