Kettle Hill Invests $35 Million in LKQ Amid 19% Stock Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 12 2025
0mins
Should l Buy LKQ?
Source: NASDAQ.COM
Kettle Hill's Investment in LKQ: Kettle Hill Capital Management acquired 1,163,355 shares of LKQ, valued at approximately $35.53 million, making it the firm's largest holding and representing 7.99% of its 13F assets under management.
LKQ's Financial Performance: Despite a significant revenue of $13.96 billion and a net income of $697 million, LKQ's stock has underperformed, with shares down 19.23% over the past year compared to the S&P 500.
Market Position and Strategy: LKQ operates as a global distributor of automotive replacement parts, focusing on both new and recycled parts, but has struggled with a negative growth trend over the past five years.
Investor Sentiment: Kettle Hill's investment suggests a potential bet on a turnaround for LKQ, with other institutional investors also increasing their stakes, although retail investors are advised to be cautious about making decisions based solely on institutional activity.
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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: 34.040
Low
33.00
Averages
41.25
High
50.00
Current: 34.040
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.
Kiltearn Partners Increases Stake in LKQ Corporation
- Share Acquisition: Kiltearn Partners LLP purchased 264,600 shares of LKQ in Q4 2025, with an estimated transaction value of $7.98 million, indicating confidence in LKQ's future growth potential.
- Increased Ownership: This acquisition raised Kiltearn's stake in LKQ to 3.24%, making it the 12th largest holding in their portfolio, which highlights its significance despite not being in the top five.
- Financial Performance: LKQ's stock price has declined by 8.6% over the past year and is down approximately 43% from its peak in 2022, reflecting challenges faced by the company, particularly a 39.1% drop in net income over the past three years.
- Strategic Review: Following the divestiture of its self-service segment last year, LKQ raised its 2025 operating cash flow outlook by $25 million, demonstrating the company's commitment to maximizing shareholder value through strategic adjustments.
See More
Kiltearn Partners Acquires Additional LKQ Shares
- Share Acquisition: Kiltearn Partners LLP purchased an additional 264,600 shares of LKQ in Q4 2025, with an estimated transaction value of $7.98 million, indicating confidence in the auto parts sector.
- Increased Stake: This acquisition raised Kiltearn's stake in LKQ to 3.24%, making it the 12th largest holding in their portfolio, which underscores its significance despite not being in the top five.
- Financial Performance: As of February 13, 2026, LKQ shares were priced at $34.10, down 8.6% year-over-year, with net income falling by 39.1% over the past three years, highlighting the challenges the company faces.
- Strategic Review: Following the divestiture of its self-service segment last year, LKQ anticipates a $25 million increase in 2025 operating cash flow, indicating a strategic review aimed at maximizing shareholder value.
See More
Seizert Capital Increases Stake in LKQ by 503,998 Shares
- Stake Increase: Seizert Capital Partners increased its position in LKQ by 503,998 shares during Q4 2026, with an estimated transaction value of $15.20 million, indicating confidence in LKQ's future growth potential.
- Value Appreciation: The value of LKQ's stake in Seizert Capital rose by $14.65 million to $65.80 million at quarter-end, reflecting positive impacts from both share accumulation and price fluctuations.
- Market Performance: As of February 2, 2026, LKQ shares traded at $32.52, down 11.1% over the past year and underperforming the S&P 500 by 25 percentage points, raising concerns about its future growth prospects.
- Investment Outlook: Despite challenges from autonomous vehicles, LKQ is viewed as a value investment opportunity at 1.3 times book value and 12 times free cash flow, with ongoing share buybacks and a 3.63% dividend yield enhancing its investment appeal.
See More
LKQ Explores Strategic Alternatives, Potential Share Value in Low-to-Mid $50s
- Acquisition Potential Analysis: LKQ Corp. is exploring strategic alternatives, including a potential sale, with analysts suggesting a share value in the low-to-mid $50s, indicating significant long-term value potential.
- Financial Expectations Assessment: Based on 2025 financial expectations, the North American wholesale segment is valued at $5.7bn to $6.1bn, Europe at $3.0bn to $3.4bn, and Specialty at $500mn to $700mn, showcasing the potential value of the company's segments.
- Market Reaction: LKQ's shares rose by 0.4%, reflecting a positive market response to its strategic alternatives, despite facing near-term challenges in North American and European markets.
- Overall Valuation Outlook: Analysts believe LKQ's enterprise value could exceed $13bn, factoring in $4.2bn in debt and $289mn in cash, indicating significant upside potential from the current share price of $34.
See More
LKQ Corp. Initiates Strategic Alternatives Review
- Strategic Review Initiated: LKQ Corp.'s board has commenced a review of strategic alternatives, which may include a potential sale of the company, aimed at maximizing shareholder returns and enhancing current valuation.
- Management Commitment: Chairman John Mendel stated that management will continually assess the company's performance and strategic positioning to identify value not reflected in the current valuation.
- Advisory Engagement: LKQ has engaged BofA Securities as its financial advisor and Wachtell, Lipton, Rosen & Katz as its legal counsel to support the strategic review process.
- Focus on Specialty Division: The company continues with its previously announced plan to explore the potential sale of its specialty segment, although no specific timetable for the completion of the review has been set.
See More
LKQ CORP - BOARD ASSESSES POSSIBLE SALE OPTIONS
- Board Evaluates Potential Sale: The board is currently assessing the possibility of selling the company.
- Market Conditions Considered: Factors such as market conditions and company performance are being taken into account during the evaluation process.
See More
Kiltearn Partners Increases Stake in LKQ Corporation
- Share Acquisition: Kiltearn Partners LLP purchased 264,600 shares of LKQ in Q4 2025, with an estimated transaction value of $7.98 million, indicating confidence in LKQ's future growth potential.
- Increased Ownership: This acquisition raised Kiltearn's stake in LKQ to 3.24%, making it the 12th largest holding in their portfolio, which highlights its significance despite not being in the top five.
- Financial Performance: LKQ's stock price has declined by 8.6% over the past year and is down approximately 43% from its peak in 2022, reflecting challenges faced by the company, particularly a 39.1% drop in net income over the past three years.
- Strategic Review: Following the divestiture of its self-service segment last year, LKQ raised its 2025 operating cash flow outlook by $25 million, demonstrating the company's commitment to maximizing shareholder value through strategic adjustments.
See More
Kiltearn Partners Acquires Additional LKQ Shares
- Share Acquisition: Kiltearn Partners LLP purchased an additional 264,600 shares of LKQ in Q4 2025, with an estimated transaction value of $7.98 million, indicating confidence in the auto parts sector.
- Increased Stake: This acquisition raised Kiltearn's stake in LKQ to 3.24%, making it the 12th largest holding in their portfolio, which underscores its significance despite not being in the top five.
- Financial Performance: As of February 13, 2026, LKQ shares were priced at $34.10, down 8.6% year-over-year, with net income falling by 39.1% over the past three years, highlighting the challenges the company faces.
- Strategic Review: Following the divestiture of its self-service segment last year, LKQ anticipates a $25 million increase in 2025 operating cash flow, indicating a strategic review aimed at maximizing shareholder value.
See More
Seizert Capital Increases Stake in LKQ by 503,998 Shares
- Stake Increase: Seizert Capital Partners increased its position in LKQ by 503,998 shares during Q4 2026, with an estimated transaction value of $15.20 million, indicating confidence in LKQ's future growth potential.
- Value Appreciation: The value of LKQ's stake in Seizert Capital rose by $14.65 million to $65.80 million at quarter-end, reflecting positive impacts from both share accumulation and price fluctuations.
- Market Performance: As of February 2, 2026, LKQ shares traded at $32.52, down 11.1% over the past year and underperforming the S&P 500 by 25 percentage points, raising concerns about its future growth prospects.
- Investment Outlook: Despite challenges from autonomous vehicles, LKQ is viewed as a value investment opportunity at 1.3 times book value and 12 times free cash flow, with ongoing share buybacks and a 3.63% dividend yield enhancing its investment appeal.
See More
LKQ Explores Strategic Alternatives, Potential Share Value in Low-to-Mid $50s
- Acquisition Potential Analysis: LKQ Corp. is exploring strategic alternatives, including a potential sale, with analysts suggesting a share value in the low-to-mid $50s, indicating significant long-term value potential.
- Financial Expectations Assessment: Based on 2025 financial expectations, the North American wholesale segment is valued at $5.7bn to $6.1bn, Europe at $3.0bn to $3.4bn, and Specialty at $500mn to $700mn, showcasing the potential value of the company's segments.
- Market Reaction: LKQ's shares rose by 0.4%, reflecting a positive market response to its strategic alternatives, despite facing near-term challenges in North American and European markets.
- Overall Valuation Outlook: Analysts believe LKQ's enterprise value could exceed $13bn, factoring in $4.2bn in debt and $289mn in cash, indicating significant upside potential from the current share price of $34.
See More
LKQ Corp. Initiates Strategic Alternatives Review
- Strategic Review Initiated: LKQ Corp.'s board has commenced a review of strategic alternatives, which may include a potential sale of the company, aimed at maximizing shareholder returns and enhancing current valuation.
- Management Commitment: Chairman John Mendel stated that management will continually assess the company's performance and strategic positioning to identify value not reflected in the current valuation.
- Advisory Engagement: LKQ has engaged BofA Securities as its financial advisor and Wachtell, Lipton, Rosen & Katz as its legal counsel to support the strategic review process.
- Focus on Specialty Division: The company continues with its previously announced plan to explore the potential sale of its specialty segment, although no specific timetable for the completion of the review has been set.
See More
LKQ CORP - BOARD ASSESSES POSSIBLE SALE OPTIONS
- Board Evaluates Potential Sale: The board is currently assessing the possibility of selling the company.
- Market Conditions Considered: Factors such as market conditions and company performance are being taken into account during the evaluation process.
See More
