LKQ (NASDAQ:LKQ) Cut to “Market Perform” at Barrington Research

Barrington Research cut shares of LKQ (NASDAQ:LKQ) from an outperform rating to a market perform rating in a research report released on Friday, MarketBeat Ratings reports.

Several other equities analysts have also weighed in on the company. Zacks Research lowered LKQ from a “hold” rating to a “strong sell” rating in a report on Monday, August 3rd. Robert W. Baird set a $30.00 target price on LKQ in a research note on Friday, July 31st. Stephens lowered their target price on LKQ from $39.00 to $36.50 and set an “overweight” rating on the stock in a research note on Tuesday, July 21st. Barclays dropped their price target on LKQ from $30.00 to $25.00 and set an “equal weight” rating on the stock in a research report on Monday, August 3rd. Finally, Roth Capital set a $35.00 price target on LKQ in a research note on Monday, August 3rd. Four research analysts have rated the stock with a Buy rating, two have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the stock has an average rating of “Hold” and an average target price of $30.50.

LKQ Price Performance

LKQ opened at $17.42 on Friday. The company has a quick ratio of 0.61, a current ratio of 1.58 and a debt-to-equity ratio of 0.52. The stock has a market cap of $4.41 billion, a price-to-earnings ratio of 9.68 and a beta of 0.87. LKQ has a twelve month low of $17.21 and a twelve month high of $37.13. The company’s 50-day moving average price is $23.56 and its two-hundred day moving average price is $25.64.

LKQ (NASDAQ:LKQ) last released its earnings results on Thursday, July 30th. The auto parts company reported $0.67 earnings per share for the quarter, missing analysts’ consensus estimates of $0.71 by ($0.04). LKQ had a net margin of 3.37% and a return on equity of 10.84%. The company had revenue of $3.41 billion for the quarter, compared to the consensus estimate of $3.48 billion. During the same period in the prior year, the company earned $0.87 earnings per share. The firm’s revenue was down 3.0% on a year-over-year basis. LKQ has set its FY 2026 guidance at 2.600-2.900 EPS. As a group, equities analysts expect that LKQ will post 2.65 earnings per share for the current year.

LKQ Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 3rd. Investors of record on Thursday, August 20th were paid a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a yield of 6.9%. The ex-dividend date was Thursday, August 20th. LKQ’s payout ratio is currently 66.67%.

Institutional Investors Weigh In On LKQ

Institutional investors have recently made changes to their positions in the stock. Harbor Investment Advisory LLC boosted 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 worth $26,000 after acquiring an additional 650 shares during the period. Northwestern Mutual Wealth Management Co. purchased a new position in shares of LKQ in the second quarter valued at $25,000. Cedar Mountain Advisors LLC purchased a new position in shares of LKQ in the first quarter valued at $28,000. Global Retirement Partners LLC bought a new stake in shares of LKQ during the 2nd quarter valued at $25,000. Finally, Essential Partners LLC bought a new stake in shares of LKQ during the 1st quarter valued at $30,000. Hedge funds and other institutional investors own 95.63% of the company’s stock.

More LKQ News

Here are the key news stories impacting LKQ this week:

• Positive Sentiment: New CEO appointed: Salvatore A. Abbate, described as an experienced distribution executive, will become president and CEO on December 15, potentially improving execution and providing a fresh start. LKQ appoints Salvatore A. Abbate as CEO
• Positive Sentiment: Turnaround support added: LKQ retained Alvarez & Marsal to advise on its European operations, which could accelerate corrective actions related to execution and profitability. LKQ preliminary third-quarter results and operational actions
• Neutral Sentiment: Full results pending: LKQ plans to release complete third-quarter results on October 29, which should provide more detail on the European disruption and the company’s recovery plans.
• Negative Sentiment: Preliminary results missed expectations: Revenue was approximately $3.32 billion, down from $3.50 billion a year earlier and below the roughly $3.4 billion consensus. LKQ expects a net loss of $16 million to $32 million and adjusted diluted EPS of $0.47–$0.53, versus an analyst estimate near $0.69. LKQ preliminary Q3 results
• Negative Sentiment: Europe is the primary problem: European parts-and-services organic revenue fell 9.8%, reflecting an ERP implementation disruption in Germany and lower volumes in the United Kingdom and Benelux. The segment’s expected EBITDA margin was only 4.1%–5.1%.
• Negative Sentiment: Visibility has weakened: LKQ withdrew its full-year 2026 financial guidance. CEO Justin Jude and LKQ Europe chief Andy Hamilton also departed, increasing uncertainty during the turnaround. LKQ pulls 2026 guidance and names new CEO
• Negative Sentiment: Analyst sentiment deteriorated: Barrington Research downgraded LKQ from “outperform” to “market perform.” A law firm also announced an investigation into whether investors were misled about European operations and the German software rollout.

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.