LKQ (NASDAQ:LKQ) Shares Down 6% – Here’s Why

LKQ Corporation (NASDAQ:LKQ) shares fell 6% during mid-day trading on Friday . The company traded as low as $29.89 and last traded at $29.6840. 957,793 shares traded hands during mid-day trading, a decline of 63% from the average session volume of 2,622,369 shares. The stock had previously closed at $31.58.

More LKQ News

Here are the key news stories impacting LKQ this week:

• Positive Sentiment: Q1 results: Revenue beat analysts (~$3.47B vs. ~$3.39B) and EPS met expectations; management reiterated FY‑2026 EPS guidance of $2.90–$3.20 and the board launched a review of strategic alternatives aimed at enhancing shareholder value. LKQ Corporation Announces Results for First Quarter 2026
• Positive Sentiment: Dividend: LKQ declared a $0.30 quarterly dividend (annualized yield ~4.0%), which supports income-oriented investors and can act as a price floor for some holders.
• Positive Sentiment: Management action: company communications stress a renewed focus on improving financial results and margin recovery initiatives, which could help longer‑term profitability if execution succeeds. LKQ focuses on improving financial results
• Neutral Sentiment: Earnings call detail: the Q1 earnings call and presentation provide management commentary on volumes, pricing/mix and cost drivers — useful for investors evaluating the sustainability of the revenue beat. LKQ Corporation (LKQ) Q1 2026 Earnings Call Transcript
• Neutral Sentiment: Valuation discussion: markets and some coverage (e.g., Yahoo Finance) are weighing whether recent share‑price weakness presents a buying opportunity given the dividend and guidance range. Is LKQ (LKQ) Offering Value After Recent Share Price Weakness?
• Negative Sentiment: Class‑action and investor‑alert filings: multiple firms have filed or issued notices claiming securities law violations for the Feb 2023–Jul 2025 period; ongoing litigation and related headlines can create downside risk and keep volatility elevated. Bronstein, Gewirtz & Grossman LLC Urges LKQ Corporation Investors to Act: Class Action Filed Alleging Investor Harm
• Negative Sentiment: Margin pressure: analysts note that tariffs, higher costs and softer claims demand are squeezing margins — revenue mix and pricing helped sales, but margin recovery remains uncertain and is a key near‑term risk. LKQ Q1 Earnings Match Estimates, Revenues Beat on Stronger Sales Mix
• Negative Sentiment: Relative performance: coverage notes LKQ has underperformed peers recently, which can exacerbate selling pressure as investors rotate to higher‑momentum names. LKQ Corp. stock underperforms Thursday when compared to competitors despite daily gains

Analysts Set New Price Targets

A number of brokerages have recently issued reports on LKQ. Zacks Research lowered shares of LKQ from a “hold” rating to a “strong sell” rating in a research note on Monday, January 26th. Wall Street Zen lowered LKQ from a “buy” rating to a “hold” rating in a research report on Sunday, February 22nd. Barclays lowered their target price on shares of LKQ from $34.00 to $33.00 and set an “equal weight” rating for the company in a research note on Tuesday, April 7th. Weiss Ratings reissued a “sell (d+)” rating on shares of LKQ in a report on Friday, March 27th. Finally, JPMorgan Chase & Co. decreased their price target on shares of LKQ from $40.00 to $37.00 and set an “overweight” rating for the company in a report on Monday, February 23rd. Five equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, LKQ has an average rating of “Hold” and a consensus target price of $42.33.

LKQ Price Performance

The company has a debt-to-equity ratio of 0.55, a quick ratio of 0.58 and a current ratio of 1.67. The business has a fifty day moving average of $30.53 and a 200-day moving average of $31.03. The firm has a market capitalization of $7.32 billion, a P/E ratio of 12.16 and a beta of 0.91.

LKQ (NASDAQ:LKQ) last issued its quarterly earnings results on Thursday, April 30th. The auto parts company reported $0.67 EPS for the quarter, meeting analysts’ consensus estimates of $0.67. The company had revenue of $3.47 billion for the quarter, compared to analyst estimates of $3.39 billion. LKQ had a return on equity of 12.29% and a net margin of 4.36%.The company’s quarterly revenue was up 4.3% compared to the same quarter last year. During the same period last year, the company earned $0.79 earnings per share. LKQ has set its FY 2026 guidance at 2.900-3.200 EPS. On average, sell-side analysts forecast that LKQ Corporation will post 3.05 EPS for the current fiscal year.

LKQ Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, June 4th. Investors of record on Thursday, May 21st will be issued a dividend of $0.30 per share. The ex-dividend date of this dividend is Thursday, May 21st. This represents a $1.20 annualized dividend and a yield of 4.2%. LKQ’s payout ratio is presently 50.85%.

Institutional Trading of LKQ

Hedge funds and other institutional investors have recently modified their holdings of the company. Harbor Investment Advisory LLC lifted its holdings in shares of LKQ by 260.0% in the first quarter. Harbor Investment Advisory LLC now owns 900 shares of the auto parts company’s stock valued at $26,000 after buying an additional 650 shares during the period. Rossby Financial LCC raised its position in LKQ by 159.4% in the third quarter. Rossby Financial LCC now owns 882 shares of the auto parts company’s stock worth $27,000 after acquiring an additional 542 shares in the last quarter. Cedar Mountain Advisors LLC acquired a new stake in LKQ in the 1st quarter valued at about $28,000. Torren Management LLC acquired a new stake in LKQ in the 4th quarter valued at about $32,000. Finally, Root Financial Partners LLC boosted its position in shares of LKQ by 142.4% during the 1st quarter. Root Financial Partners LLC now owns 1,217 shares of the auto parts company’s stock valued at $36,000 after purchasing an additional 715 shares in the last quarter. Institutional investors own 95.63% of the company’s stock.

LKQ Company Profile

LKQ Corporation is a leading provider of alternative and specialty parts to repair and accessorize automobiles and other vehicles. The company supplies a broad range of replacement components, including recycled original equipment manufacturer (OEM) parts, aftermarket parts, refurbished and remanufactured items. Its products support collision repair, mechanical repair and performance enhancement needs across passenger cars, heavy trucks and recreational vehicles.

Through a combination of in-house operations and strategic acquisitions, LKQ has developed a comprehensive product portfolio that extends beyond core replacement parts.