Petrus Trust Acquires 520,000 Shares in LKQ
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 20 2026
0mins
Should l Buy LKQ?
Source: Fool
- New Investment Position: Petrus Trust Company established a new position of 520,000 shares in LKQ during Q4 2026, amounting to $15.70 million, reflecting confidence in the company despite a 31% decline in stock price over the past year.
- Financial Performance Review: LKQ's revenue edged up to $3.3 billion in Q4 2026, although net income fell to $75 million, indicating profitability pressures; however, the company generated strong cash flow with $1.1 billion in operating cash flow for the full year.
- Cost Control Initiatives: LKQ's management has implemented cost-cutting measures expected to save over $50 million annually, with more than half of these savings anticipated to be realized this year, which will help alleviate profit pressures and improve financial health.
- Market Position and Outlook: As a leading distributor in the automotive replacement parts market across North America and Europe, LKQ is poised to benefit from steady aftermarket demand and pricing power, supported by its extensive supply chain and diverse customer base.
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Analyst Views on LKQ
Wall Street analysts forecast LKQ stock price to rise
6 Analyst Rating
5 Buy
1 Hold
0 Sell
Strong Buy
Current: 29.180
Low
33.00
Averages
41.25
High
50.00
Current: 29.180
Low
33.00
Averages
41.25
High
50.00
About LKQ
LKQ Corporation is a provider of alternative and specialty parts to repair and accessorize automobiles and other vehicles. The Company offers its customers a range of original equipment manufacturer (OEM) recycled and aftermarket parts, replacement systems, components, equipment, and services. Its Wholesale - North America segment provides alternative vehicle collision replacement products, paint and body repair related products, and alternative vehicle mechanical replacement products, with its sales, processing, and distribution facilities reaching major markets in the United States and Canada. Its Europe segment provides alternative vehicle replacement and maintenance products in Germany, the United Kingdom, the Benelux region (Belgium, Netherlands, and Luxembourg), Italy, Czech Republic, Austria, Slovakia, France and other European countries. Its Specialty segment is a distributor of specialty vehicle aftermarket equipment and accessories across the United States and Canada.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
IJS ETF 52-Week Price Fluctuation Analysis
- Price Range Analysis: The IJS ETF has a 52-week low of $82.0972 and a high of $127.8474, with the latest trade at $117.70, indicating significant price fluctuations over the past year and reflecting market interest in its performance.
- Technical Analysis Tool: Comparing the latest share price to the 200-day moving average provides investors with valuable insights for technical analysis, aiding in market trend assessment and potential buying opportunities.
- ETF Unit Trading Mechanism: ETFs trade similarly to stocks, where investors buy and sell 'units' that can be created or destroyed based on investor demand, impacting liquidity and market performance.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in ETF shares outstanding highlights those experiencing notable inflows or outflows, which can affect the underlying stocks held within the ETFs and influence overall market dynamics.
See More
Petrus Trust Acquires 520,000 Shares in LKQ
- New Investment Position: Petrus Trust Company established a new position of 520,000 shares in LKQ during Q4 2026, amounting to $15.70 million, reflecting confidence in the company despite a 31% decline in stock price over the past year.
- Financial Performance Review: LKQ's revenue edged up to $3.3 billion in Q4 2026, although net income fell to $75 million, indicating profitability pressures; however, the company generated strong cash flow with $1.1 billion in operating cash flow for the full year.
- Cost Control Initiatives: LKQ's management has implemented cost-cutting measures expected to save over $50 million annually, with more than half of these savings anticipated to be realized this year, which will help alleviate profit pressures and improve financial health.
- Market Position and Outlook: As a leading distributor in the automotive replacement parts market across North America and Europe, LKQ is poised to benefit from steady aftermarket demand and pricing power, supported by its extensive supply chain and diverse customer base.
See More
Kettle Hill Reduces LKQ Holdings Significantly
- Share Reduction Details: Kettle Hill sold 777,476 shares of LKQ in Q4, with an estimated transaction value of $23.45 million, indicating a decline in confidence that may affect future investment strategies.
- Decline in Position Value: The value of Kettle Hill's LKQ holdings dropped by $23.88 million from the previous quarter to $11.65 million, reflecting a negative market perception that could lead investors to reassess their portfolios.
- Company Strategic Shift: LKQ is under pressure from Ananym Capital to divest its Keystone Automotive Industries division, valued at approximately $1 billion, which could impact the company's long-term growth potential and operational focus.
- Market Performance Analysis: Although LKQ's stock has risen over 4% year-to-date, the uncertain market environment and analysts' views suggest that LKQ is not currently seen as a top investment choice, potentially affecting future capital inflows.
See More
Kettle Hill Capital Management Reduces LKQ Holdings
- Share Reduction Details: Kettle Hill Capital Management reduced its LKQ holdings by 777,476 shares in Q4 2026, with an estimated transaction value of $23.45 million, resulting in a holding value of $11.65 million, down $23.88 million from the previous quarter, indicating a decline in market confidence.
- Asset Allocation Shift: As of December 31, 2025, LKQ accounted for only 2.6% of Kettle Hill's 13F assets, down from 8% in the prior quarter, reflecting decreased investor interest that could impact future financing capabilities.
- Market Performance Analysis: As of February 17, 2026, LKQ shares were priced at $32.51, down 16.8% year-over-year and trailing the S&P 500 by 28.8 percentage points, suggesting the company faces competitive pressures and needs effective strategies to enhance shareholder value.
- Strategic Adjustments and Outlook: LKQ is undergoing a transition period, pressured by activist investor Ananym Capital to sell its Keystone Automotive Industries division, valued at approximately $1 billion, aiming to simplify operations and improve productivity in an uncertain demand environment.
See More
Bullish Thesis on LKQ Corporation's Market Outlook
- Market Positioning Advantage: LKQ Corporation, as a global distributor of aftermarket vehicle parts and diagnostic services, has become a leader in North America and Europe through historical acquisition growth, currently trading at $33.29 with a P/E ratio of 11.43, indicating stable profitability.
- Financial Performance Pressure: Despite LKQ's strong performance in a non-discretionary repair ecosystem, its financial results are pressured by a sharp decline in repair claims, rising insurance costs, and falling used car prices, leading to investor dissatisfaction regarding capital allocation.
- Activist Investors Driving Change: The re-emergence of activist investors has become a central catalyst, with Ancora Advisors gaining board representation and Ananym Capital publicly pushing for portfolio simplification and shareholder returns, prompting management to divest non-core assets to reduce leverage.
- Strategic Review and Value Maximization: LKQ has announced a formal strategic review considering the possibility of a full sale, with potential outcomes including divesting European and Specialty segments to fund aggressive buybacks or attracting private equity or strategic buyers, highlighting its future growth potential.
See More
LKQ Reports Q4 Earnings Miss, Restructuring Plan Approved
- Earnings Performance: LKQ reported fourth-quarter adjusted EPS of 59 cents, missing the analyst consensus of 65 cents, although quarterly sales reached $3.312 billion, reflecting a 2.7% year-over-year increase that surpassed market expectations of $3.253 billion, indicating resilience in sales growth.
- Revenue Composition: Total parts and services revenue increased by 2.2%, with foreign exchange rates contributing to a 3.7% year-over-year growth, suggesting improved performance in international markets, despite pressure on overall profitability.
- Restructuring Plan: The company approved a restructuring plan expected to incur $60 million to $70 million in charges, with management anticipating over $50 million in annualized savings, primarily starting in 2026, aimed at enhancing long-term performance.
- Future Outlook: LKQ forecasts FY2026 adjusted EPS between $2.90 and $3.20, below the analyst estimate of $3.29, indicating potential earnings pressure ahead, although it still plans to declare a quarterly cash dividend of 30 cents per share to maintain shareholder confidence.
See More
IJS ETF 52-Week Price Fluctuation Analysis
- Price Range Analysis: The IJS ETF has a 52-week low of $82.0972 and a high of $127.8474, with the latest trade at $117.70, indicating significant price fluctuations over the past year and reflecting market interest in its performance.
- Technical Analysis Tool: Comparing the latest share price to the 200-day moving average provides investors with valuable insights for technical analysis, aiding in market trend assessment and potential buying opportunities.
- ETF Unit Trading Mechanism: ETFs trade similarly to stocks, where investors buy and sell 'units' that can be created or destroyed based on investor demand, impacting liquidity and market performance.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in ETF shares outstanding highlights those experiencing notable inflows or outflows, which can affect the underlying stocks held within the ETFs and influence overall market dynamics.
See More
Petrus Trust Acquires 520,000 Shares in LKQ
- New Investment Position: Petrus Trust Company established a new position of 520,000 shares in LKQ during Q4 2026, amounting to $15.70 million, reflecting confidence in the company despite a 31% decline in stock price over the past year.
- Financial Performance Review: LKQ's revenue edged up to $3.3 billion in Q4 2026, although net income fell to $75 million, indicating profitability pressures; however, the company generated strong cash flow with $1.1 billion in operating cash flow for the full year.
- Cost Control Initiatives: LKQ's management has implemented cost-cutting measures expected to save over $50 million annually, with more than half of these savings anticipated to be realized this year, which will help alleviate profit pressures and improve financial health.
- Market Position and Outlook: As a leading distributor in the automotive replacement parts market across North America and Europe, LKQ is poised to benefit from steady aftermarket demand and pricing power, supported by its extensive supply chain and diverse customer base.
See More
Kettle Hill Reduces LKQ Holdings Significantly
- Share Reduction Details: Kettle Hill sold 777,476 shares of LKQ in Q4, with an estimated transaction value of $23.45 million, indicating a decline in confidence that may affect future investment strategies.
- Decline in Position Value: The value of Kettle Hill's LKQ holdings dropped by $23.88 million from the previous quarter to $11.65 million, reflecting a negative market perception that could lead investors to reassess their portfolios.
- Company Strategic Shift: LKQ is under pressure from Ananym Capital to divest its Keystone Automotive Industries division, valued at approximately $1 billion, which could impact the company's long-term growth potential and operational focus.
- Market Performance Analysis: Although LKQ's stock has risen over 4% year-to-date, the uncertain market environment and analysts' views suggest that LKQ is not currently seen as a top investment choice, potentially affecting future capital inflows.
See More
Kettle Hill Capital Management Reduces LKQ Holdings
- Share Reduction Details: Kettle Hill Capital Management reduced its LKQ holdings by 777,476 shares in Q4 2026, with an estimated transaction value of $23.45 million, resulting in a holding value of $11.65 million, down $23.88 million from the previous quarter, indicating a decline in market confidence.
- Asset Allocation Shift: As of December 31, 2025, LKQ accounted for only 2.6% of Kettle Hill's 13F assets, down from 8% in the prior quarter, reflecting decreased investor interest that could impact future financing capabilities.
- Market Performance Analysis: As of February 17, 2026, LKQ shares were priced at $32.51, down 16.8% year-over-year and trailing the S&P 500 by 28.8 percentage points, suggesting the company faces competitive pressures and needs effective strategies to enhance shareholder value.
- Strategic Adjustments and Outlook: LKQ is undergoing a transition period, pressured by activist investor Ananym Capital to sell its Keystone Automotive Industries division, valued at approximately $1 billion, aiming to simplify operations and improve productivity in an uncertain demand environment.
See More
Bullish Thesis on LKQ Corporation's Market Outlook
- Market Positioning Advantage: LKQ Corporation, as a global distributor of aftermarket vehicle parts and diagnostic services, has become a leader in North America and Europe through historical acquisition growth, currently trading at $33.29 with a P/E ratio of 11.43, indicating stable profitability.
- Financial Performance Pressure: Despite LKQ's strong performance in a non-discretionary repair ecosystem, its financial results are pressured by a sharp decline in repair claims, rising insurance costs, and falling used car prices, leading to investor dissatisfaction regarding capital allocation.
- Activist Investors Driving Change: The re-emergence of activist investors has become a central catalyst, with Ancora Advisors gaining board representation and Ananym Capital publicly pushing for portfolio simplification and shareholder returns, prompting management to divest non-core assets to reduce leverage.
- Strategic Review and Value Maximization: LKQ has announced a formal strategic review considering the possibility of a full sale, with potential outcomes including divesting European and Specialty segments to fund aggressive buybacks or attracting private equity or strategic buyers, highlighting its future growth potential.
See More
LKQ Reports Q4 Earnings Miss, Restructuring Plan Approved
- Earnings Performance: LKQ reported fourth-quarter adjusted EPS of 59 cents, missing the analyst consensus of 65 cents, although quarterly sales reached $3.312 billion, reflecting a 2.7% year-over-year increase that surpassed market expectations of $3.253 billion, indicating resilience in sales growth.
- Revenue Composition: Total parts and services revenue increased by 2.2%, with foreign exchange rates contributing to a 3.7% year-over-year growth, suggesting improved performance in international markets, despite pressure on overall profitability.
- Restructuring Plan: The company approved a restructuring plan expected to incur $60 million to $70 million in charges, with management anticipating over $50 million in annualized savings, primarily starting in 2026, aimed at enhancing long-term performance.
- Future Outlook: LKQ forecasts FY2026 adjusted EPS between $2.90 and $3.20, below the analyst estimate of $3.29, indicating potential earnings pressure ahead, although it still plans to declare a quarterly cash dividend of 30 cents per share to maintain shareholder confidence.
See More
