LKQ Corp (NASDAQ:LKQ) director Urbain Xavier has sold a portion of his stock in the company, according to a recent SEC filing. The transaction, which took place on May 7, 2024, involved the sale of 867 shares at a weighted average price of $44.4958, totaling over $38,577.
The sale was conducted under a pre-arranged 10b5-1 trading plan, which allows company insiders to set up a predetermined plan to sell stocks at a specific time or price, providing a defense against claims of insider trading. The plan is often used to sell shares in a manner that is compliant with the SEC's trading regulations.
The filing also noted that the shares were sold to satisfy tax withholding obligations related to the vesting of restricted stock units. This is a common practice where employees use a portion of their vested equity to cover the taxes incurred upon the vesting of their stock.
In addition to the sale, the report disclosed an award of restricted stock units to Urbain Xavier, which increased his direct ownership of LKQ Corp shares. The awarded shares amounted to 3,709 units, valued at $0 as they represent an award and not a purchase on the open market.
Following these transactions, Xavier's direct ownership in the company stands at 15,606 shares. The price range for the sales was between $44.25 and $44.83, with the SEC document offering to provide full information on the number of shares sold at each separate price upon request.
Investors and followers of LKQ Corp will likely keep an eye on insider transactions like these for insights into executive sentiment and potential future stock performance. LKQ Corp specializes in wholesale motor vehicles and motor vehicle parts and supplies, and is known for its distribution network in the vehicle aftermarket.
The reported transactions provide a glimpse into the financial moves of one of LKQ Corp's directors, offering a snapshot of insider activity within the company.
InvestingPro Insights
As LKQ Corp (NASDAQ:LKQ) navigates the market, recent financial data from InvestingPro provides a snapshot of the company's performance and valuation. With a market capitalization of $11.82 billion and a P/E ratio sitting at 14.32, LKQ appears to maintain a stable position in the market. The P/E ratio, adjusted for the last twelve months as of Q1 2024, is slightly lower at 13.47, suggesting a potentially more attractive valuation for investors.
The company has also demonstrated a solid revenue growth of 11.14% over the last twelve months as of Q1 2024, with a quarterly growth rate of 10.57% in Q1 2024. This growth is complemented by a gross profit margin of 39.85%, indicating strong profitability in its operations. Additionally, LKQ's operating income margin of 9.63% reflects efficient management of its expenses relative to its revenue.
InvestingPro Tips highlight that LKQ has consistently raised its dividend for the past three years, which may appeal to income-focused investors. Furthermore, the company's liquid assets surpass its short-term obligations, indicating a healthy liquidity position. On the other hand, it's worth noting that analysts have recently revised their earnings expectations downwards for the upcoming period, and the stock has experienced a decline over the last month, trading near its 52-week low. Despite these challenges, analysts predict profitability for the company this year, as it has been profitable over the last twelve months.
For those interested in gaining more insights and tips on LKQ, InvestingPro offers additional information that can be accessed at https://www.investing.com/pro/LKQ. To enhance your InvestingPro experience, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are currently 6 additional InvestingPro Tips available for LKQ on the platform.
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