LKQ Corporation [NASDAQ: LKQ] jumped around 0.54 points on Thursday, while shares priced at $50.29 at the close of the session, up 1.09%. The company report on May 14, 2021 that Fitch Initiates Rating of LKQ Corporation: ‘BBB-’ with Stable Outlook.
LKQ Corporation (Nasdaq: LKQ), a leading provider of alternative and specialty parts to repair and accessorize automobiles and other vehicles, announced that Fitch Ratings, Inc. (“Fitch”) has assigned first time Long-Term Issuer Default Ratings of ‘BBB-’ to LKQ and its subsidiary LKQ European Holdings B.V. (LKQ Europe). Additionally, Fitch has assigned ratings of ‘BBB-’ to LKQ’s senior secured revolving credit facility and term loan and to the senior unsecured notes issued by LKQ Europe and LKQ Italia Bondco S.p.A. Fitch’s rating outlook for LKQ and LKQ Europe is stable.
“Achieving investment grade status with Fitch is another significant milestone for LKQ as we focus on operational excellence. We stated our investment grade ambitions at our September 2020 Investor Day and I am pleased that Fitch has recognized our progress,” said Varun Laroyia, Executive Vice President and Chief Financial Officer. “This credit rating validates the efficacy of our operational excellence programs, which were implemented to make our business more resilient, strengthen our balance sheet, drive sustainable profitability and generate robust levels of free cash flow. With our credit facility net leverage ratio of 1.4x EBITDA, well within our stated target of 2.0x, we have the ability to allocate our cash flow towards pursuing organic investments, targeting tuck-in acquisitions and returning capital to stockholders while maintaining an investment grade credit rating.”.
LKQ Corporation stock is now 42.71% up from its year-to-date (YTD) trading value. LKQ Stock saw the intraday high of $50.38 and lowest of $49.46 per share. The company’s 52-week high price is 51.52, which means current price is +47.43% above from all time high which was touched on 05/18/21.
Compared to the average trading volume of 1.86M shares, LKQ reached a trading volume of 2429002 in the most recent trading day, which is why market watchdogs consider the stock to be active.
What do top market gurus say about LKQ Corporation [LKQ]?
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for LKQ shares is $56.75 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on LKQ stock is a recommendation set at 1.60. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Northcoast have made an estimate for LKQ Corporation shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on June 08, 2020. The new note on the price target was released on July 26, 2019, representing the official price target for LKQ Corporation stock.
The Average True Range (ATR) for LKQ Corporation is set at 1.20, with the Price to Sales ratio for LKQ stock in the period of the last 12 months amounting to 1.25. The Price to Book ratio for the last quarter was 2.61, with the Price to Cash per share for the same quarter was set at 2.01. Price to Free Cash Flow for LKQ in the course of the last twelve months was 9.22 with Quick ratio for the last quarter at 0.80.
How has LKQ stock performed recently?
LKQ Corporation [LKQ] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 2.11. With this latest performance, LKQ shares gained by 13.15% in over the last four-week period, additionally plugging by 37.82% over the last 6 months – not to mention a rise of 97.10% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for LKQ stock in for the last two-week period is set at 65.60, with the RSI for the last a single of trading hit 64.12, and the three-weeks RSI is set at 65.80 for LKQ Corporation [LKQ]. The present Moving Average for the last 50 days of trading for this stock 45.32, while it was recorded at 50.33 for the last single week of trading, and 37.23 for the last 200 days.
LKQ Corporation [LKQ]: Deeper insight into the fundamentals
Operating Margin for any stock indicates how profitable investing would be, and LKQ Corporation [LKQ] shares currently have an operating margin of +9.11 and a Gross Margin at +37.22. LKQ Corporation’s Net Margin is presently recorded at +5.49.
Return on Total Capital for LKQ is now 10.36, given the latest momentum, and Return on Invested Capital for the company is 6.54. Return on Equity for this stock inclined to 11.98, with Return on Assets sitting at 5.08. When it comes to the capital structure of this company, LKQ Corporation [LKQ] has a Total Debt to Total Equity ratio set at 75.87. Additionally, LKQ Total Debt to Total Capital is recorded at 43.14, with Total Debt to Total Assets ending up at 34.71. Long-Term Debt to Equity for the company is recorded at 70.91, with the Long-Term Debt to Total Capital now at 40.32.
Reflecting on the efficiency of the workforce at the company, LKQ Corporation [LKQ] managed to generate an average of $14,514 per employee. Receivables Turnover for the company is 10.55 with a Total Asset Turnover recorded at a value of 0.93.LKQ Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.80 and a Current Ratio set at 1.80.
Earnings analysis for LKQ Corporation [LKQ]
With the latest financial reports released by the company, LKQ Corporation posted 0.53/share EPS, while the average EPS was predicted by analysts to be reported at 0.16/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 231.20%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for LKQ. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for LKQ Corporation go to 33.50%.
Insider trade positions for LKQ Corporation [LKQ]
There are presently around $14,572 million, or 98.29% of LKQ stock, in the hands of institutional investors. The top three institutional holders of LKQ stocks are: VANGUARD GROUP INC with ownership of 27,864,993, which is approximately -0.773% of the company’s market cap and around 0.40% of the total institutional ownership; VALUEACT HOLDINGS, L.P., holding 21,547,746 shares of the stock with an approximate value of $1.08 billion in LKQ stocks shares; and BLACKROCK INC., currently with $1.03 billion in LKQ stock with ownership of nearly 7.056% of the company’s market capitalization.
Positions in LKQ Corporation stocks held by institutional investors increased at the end of April and at the time of the April reporting period, where 244 institutional holders increased their position in LKQ Corporation [NASDAQ:LKQ] by around 25,207,454 shares. Additionally, 296 investors decreased positions by around 22,383,719 shares, while 68 investors held positions by with 242,164,077 shares. The mentioned changes placed institutional holdings at 289,755,250 shares, according to the latest SEC report filing. LKQ stock had 52 new institutional investments in for a total of 2,551,430 shares, while 62 institutional investors sold positions of 7,133,494 shares during the same period.