ValueAct Capital Management LP recently announced the acquisition of new stake in LKQ Corporation (NASDAQ:LKQ). The institutional investor has increased its shareholding in the Consumer Cyclical company by 30.33% to 21.55 million shares with purchase of 5.02 million shares. This fresh investment now brings its stake to 7.09% valued currently at $564.55 million. In addition, BlackRock Fund Advisors raised its holdings by 0.63 million to 15.1 million shares. And Norges Bank Investment Management has lifted its position by 2.04% or 0.17 million shares – to 8.51 million shares.
With over 2.97 million LKQ Corporation (LKQ) shares trading Friday and a closing price of $28.19 on the day, the dollar volume was approximately $83.62 million. The shares have shown a positive weekly performance of 0.82% and its price on 07/31/20 lost nearly -3.49%. Currently, there are 306.24M common shares owned by the public and among those 297.87M shares have been available to trade.
An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 12 analysts who have offered their price forecasts for LKQ have a consensus price objective of $35.89. The analysts have set the share’s price value over the next 12 months at a high of $44.00 and a low of $32.00 should the stock experience a downside. Incidentally, analysts’ outlook for the LKQ Corporation stock is 1.60 for the next 12 months. The average price target is 16.79% above its last price level and an upside to the estimated low will see the stock gain 11.91% over that period. But an upside of 35.93% will see the stock hit the forecast high price target while mean target price for the stock is $35.00.
Insiders at the company have transacted a total of 71 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 26 of these insider trades were purchases, accounting for 472,555 shares. Insider sales of the common stock occurred on 45 occasions, with total insider shares sold totaling 247,842 shares.
The top 3 mutual fund holders in LKQ Corporation are Government Pension Fund – Global, Vanguard Total Stock Market Index, and Vanguard Mid Cap Index Fund. Government Pension Fund – Global owns 8.4 million shares of the company’s stock, all valued at over $220.07 million. The company bought an additional 0.17 million shares recently to bring their total holdings to about 2.76% of the shares outstanding. Vanguard Total Stock Market Index sold -0.15 million shares to see its total holdings shrink to 7.81 million shares valued at over $204.63 million and representing 2.57% of the shares outstanding. Vanguard Mid Cap Index Fund sold -0.43 million shares to bring its total holdings to over 6.76 million shares at a value of $177.14 million. Vanguard Mid Cap Index Fund now owns shares totaling to 2.22% of the shares outstanding.
Shares of LKQ Corporation (NASDAQ: LKQ) opened at $29.32, up $0.11 from a prior closing price of $29.21. However, the script later closed the day at $28.19, down -3.49%. The company’s stock has a 5-day price change of 0.82% and 13.62% over the past three months. LKQ shares are trading -21.04% year to date (YTD), with the 12-month market performance up to 7.80% higher. It has a 12-month low price of $13.31 and touched a high of $36.63 over the same period. Currently, 2.97 million shares have been traded, compared to an average intraday trading volume of 2.59 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 3.59%, 4.06%, and -3.26% respectively.
Institutional ownership of LKQ Corporation (NASDAQ: LKQ) shares accounts for 97.90% of the company’s 306.24M shares outstanding. Mutual fund holders own 48.18%, while other institutional holders and individual stakeholders account for 7.50% and 47.81% respectively.
It has a market capitalization of $8.63B and a beta (3y monthly) value of 1.67. The stock’s trailing 12-month PE ratio is 14.78, while the earnings-per-share (ttm) stands at $1.91. The company has a PEG of 0.44 and a Quick Ratio of 0.90 with the debt-to-equity ratio at 0.76. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.57% over the week and 3.67% over the month.
Analysts forecast that LKQ Corporation (LKQ) will achieve an EPS of $0.44 for the current quarter, $0.49 for the next quarter and $2.25 for 2021. The lowest estimate earnings-per-share for the quarter is $0.26 while analysts give the company a high EPS estimate of $0.52. Comparatively, EPS for the current quarter was $0.61 a year ago. Earnings per share for the fiscal year are expected to increase by 13.30%, and 38.09% over the next financial year. EPS should grow at an annualized rate of 33.50% over the next five years, compared to 6.90% over the past 5-year period.
If you are looking to buy this stock, then you may note that the average analyst recommendation by 12 brokerage firm advisors rate LKQ Corporation (LKQ) as a “Strong Buy” at a consensus score of 1.60. Specifically, 7 Wall Street analysts polled rate the stock as a buy, while 2 of the 12 advise that investors “hold,” and 0 rated it as a “Sell.”
Looking at the support for the LKQ, a number of firms have released research notes about the stock. Northcoast stated their Neutral rating for the stock in a research note on June 08, 2020, with the firm’s price target at . Wellington Shields coverage for the LKQ Corporation (LKQ) stock in a research note released on July 26, 2019 offered a Gradually Accumulate rating with a price target of . Raymond James was of a view on July 26, 2019 that the stock is Mkt Perform, while Guggenheim gave the stock Buy rating on March 06, 2019, issuing a price target of $33. William Blair on their part issued Mkt Perform rating on January 18, 2019.