Ananym Capital Buys Another $11 Million of LKQ Amid Stock's 26% Pullback

What happened

According to an SEC filing dated Feb. 17, 2026, Ananym Capital Management, LP increased its stake in LKQ (NASDAQ:LKQ) by 361,902 shares during the fourth quarter of 2025. The estimated size of the share purchase is $10.91 million, calculated using the average quarterly closing price. The total value of the LKQ position rose by $10.68 million, reflecting both trading activity and share price changes.

What else to know

After the buy, LKQ now accounts for 13.79% of Ananym’s 13F reportable assets under management.

• Top holdings after the filing:
  • Marriott Vacations Worldwide: $42.51 million (17.5% of AUM)
  • Henry Schein: $41.35 million (17.0% of AUM)
  • Baker Hughes: $36.61 million (15.1% of AUM)
  • Scholastic: $35.85 million (14.7% of AUM)
  • LKQ: $33.52 million (13.8% of AUM)

As of Feb. 17, 2026, LKQ shares were priced at $32.51, down 14.9% over the past year and underperforming the S&P 500 by 29 percentage points.

Company overview

Company snapshot

LKQ:

• Distributes replacement auto parts, components, and systems, including body panels, glass, salvage mechanical parts, and specialty vehicle accessories.
• Operates a diversified business model across North America and Europe, generating revenue primarily through the sale and distribution of automotive parts for repair and maintenance.
• Serves collision and mechanical repair shops, new and used car dealerships, and retail customers in the automotive aftermarket sector.

LKQ is a leading global distributor of automotive replacement parts, with a significant presence in North America and Europe. The company leverages its scale and broad product portfolio to provide comprehensive solutions for vehicle repair and maintenance. Its diversified customer base and extensive distribution network position LKQ as a key supplier in the automotive aftermarket industry.

What this transaction means for investors

Ananym Capital’s purchase of LKQ is interesting for a few reasons. First, the firm originally bought LKQ in Q4 of 2024 for around $36. It turned around and made a quick profit over the next couple of quarters, selling over half its shares. However, Ananym has been accumulating LKQ again over the last two quarters, after the stock dropped to $30, suggesting that the firm may see it as a buy-the-dip opportunity.

Ananym’s doubling down on LKQ stock is noteworthy, as the stock faces an existential question: what will autonomous vehicles (AVs) do to its operations? There’s no denying that this shift toward AVs seems unstoppable, but it may take years (if not decades) to play out. Furthermore, this shift might not cause a full disruption to LKQ’s business, given that the company is a leader in its niche, and we don’t know what impact it will have on the broader auto parts supply chain.

That said, LKQ’s sales have grown by only 3% annually over the last five years, while margins were pressured, causing the stock’s valuation to plummet. LKQ now only trades at 1.3 times book value and 12 times free cash flow, so the market has it priced as though it is ripe for disruption. While I personally find Copart more interesting in this niche, I certainly understand Ananym’s interest, especially with LKQ’s well-funded dividend yielding 3.7%. LKQ will likely remain a battleground stock for years to come as we watch AVs reshape the niche, but I don’t think this shift will happen overnight, giving the company plenty of time to adjust its operational focus.

Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool recommends LKQ. The Motley Fool has a disclosure policy.