LKQ Corporation (LKQ): A Technical View


As of Friday close, LKQ Corporation’s (NASDAQ:LKQ) stock was down -$0.7, moving down -1.28 percent to $54.04. The average number of shares traded per day over the past five days has been 2,578,180 shares. 2 times new highs have been achieved over the past 5 days, with a -$0.56 fall in that time frame. In the last twenty days, the average volume was 2,254,950, while in the previous 50 days, it was 1,786,682.

Since last month, LKQ stock retreated -6.68%. Shares of the company fell to $52.55 on 03/15/23, the lowest level in the past month. A 52-week high of $59.33 was reached on 02/02/23 after having rallying from a 52-week low of $43.37. Since the beginning of this year, LKQ’s stock price has risen by 1.18% or $0.63, and marked a new high 11 times. However, the stock has declined by -8.92% since its 52-week high.

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LKQ stock investors should be aware that LKQ Corporation (LKQ) stock had its last reported insider trading activity 11 days ago on Mar 07. ValueAct Holdings, L.P., the Director of the company, disposed of 202,751 shares for $57.78 on Mar 07. It resulted in a $11,714,953 divestment by the insider. ValueAct Holdings, L.P. sold 425,000 shares at an average price of $57.83 on Mar 06. The insider now owns 202,751 shares following the transaction. On Mar 03, Director ValueAct Holdings, L.P. sold 475,000 shares at $58.11 apiece. The transaction was valued at $27,602,250.

Valuation Metrics

Right now, LKQ Corporation (LKQ) has a P/E ratio of about 13.21. The stock’s beta is 1.37. Besides these, the trailing price-to-sales (P/S) ratio of 1.16, the price-to-book (PB) ratio of 2.65, and the price-to-cash flow ratio of 19.89 may also be considered.

The latest dividend of $0.2750 per share was paid out, remained unchanged from last year’s $0.2750. On Thursday October 27 2022, a $0.0250 dividend increase was announced.

Financial Health

In the three months ended December 30, LKQ Corporation’s quick ratio stood at 0.70, while its current ratio was 1.90, showing that the company is not able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending December 30 was 0.48, and the total debt-to-equity ratio was 0.49. On the profitability front, the trailing twelve-month gross margin is 40.80% percent. In the year ended December 30, operating margins totaled 12.40%. Based on annual data, LKQ earned $5.22 billion in gross profit and brought in $12.79 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 14.70%. Return on equity (ROE) for the past 12 months was 20.80%.

According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. While analysts expected LKQ Corporation to report $0.86 quarterly earnings, the actual figure was $0.78 per share, beating the consensus estimate by -9.30%. During the quarter, the company generated $360.0 million in EBITDA. The liabilities of LKQ Corporation were 6.57 billion at the end of its most recent quarter ended December 30, and its total debt was $3.94 billion. The value of shareholders’ equity is $267.06 million.

Technical Picture

This quick technical analysis looks at LKQ Corporation’s (LKQ) price momentum. With a historical volatility rate of 28.89%, the RSI 9-day stood at 37.93% on 17 March.

With respect to its five-day moving average, the current LKQ Corporation price is down by -1.03% percent or -$0.56. At present, LKQ shares trade -6.67% below its 20-day simple moving average and +4.95% percent above its 100-day simple moving average. However, the stock is currently trading approximately -1.01% below its SMA50 and +5.16% above its SMA200.

Stochastic coefficient K was 24.51% and Stochastic coefficient D was 21.46%, while ATR was 1.46. Given the Stochastic reading of 24.35% for the 14-day period, the RSI (14) reading has been calculated as 40.03%. As of today, the MACD Oscillator reading stands at -1.04, while the 14-day reading stands at -1.99.

Analyst Ratings

MKM Partners launched its rating on LKQ Corporation (NASDAQ: LKQ) to a Buy in a note to investors on July 13, 2022. LKQ Corporation (LKQ) has been rated Overweight by analysts. According to 0 brokerage firms, LKQ is a sell, and 3 firms recommend it is a Hold. There are 1 analyst who say the stock is underweight. A total of 2 analysts rate LKQ Corporation stock as buy, with 5 recommending it as overweight.

With a median target price of $65.50, the current consensus forecast for the stock is $61.30 – $70.00. Based on these forecasts, analysts predict LKQ Corporation (LKQ) will achieve an average price target of $66.04.


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