Kettle Hill Dumps 777,000 LKQ Shares Worth $23.4 Million
Key Points
Kettle Hill sold 777,476 LKQ shares, with the estimated transaction value at $23.45 million (based on quarterly average price).
The fund's LKQ position value declined by $23.88 million over the quarter, reflecting both share sales and stock price changes.
Post-sale, Kettle Hill reported holding 385,879 LKQ shares worth $11.65 million as of Dec. 31, 2025.
The LKQ stake now accounts for 2.6% of fund AUM, placing it outside the fund's top five holdings.
- 10 stocks we like better than LKQ ›
What happened
According to an SEC filing dated Feb. 17, 2026, Kettle Hill Capital Management reduced its position in LKQ (NASDAQ:LKQ) by 777,476 shares during the fourth quarter. The estimated transaction value for these sales was $23.45 million, calculated using the period's average share price. At quarter-end, the LKQ holding's value was $11.65 million, down $23.88 million from the prior quarter due to both trading and price movement.
What else to know
- Kettle Hill's sale brought LKQ to 2.6% of 13F assets under management as of Dec. 31, 2025.
- Top five holdings after the filing:
- Elastic NV: $29.69 million (6.6% of AUM)
- Unity Software: $29.06 million (6.5% of AUM)
- RH: $28.87 million (6.4% of AUM)
- Penn Entertainment: $26.16 million (5.8% of AUM)
- Wynn Resorts: $25.89 million (5.8% of AUM)
- As of Feb. 17, 2026, LKQ shares were priced at $32.51, down 16.8% over the past year and trailing the S&P 500 by 28.8 percentage points.
- The LKQ position was previously 8% of Kettle Hill's AUM as of the prior quarter.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $13.65 billion |
| Net income (TTM) | $596 million |
| Dividend yield | 3.81% |
| Price (as of market close 2/17/26) | $32.51 |
Company snapshot
- Distributes automotive replacement parts, components, and systems including body panels, mechanical parts, glass, and specialty products for vehicles.
- Operates a diversified distribution model across North America and Europe, generating revenue through the sale of new and recycled parts to repair shops, dealerships, and retail customers.
- Serves collision and mechanical repair shops, new and used car dealerships, and retail consumers in the United States, Canada, and various European markets.
LKQ is a leading global distributor of automotive replacement parts, with operations spanning North America and Europe. The company leverages scale and a broad product portfolio to supply both new and recycled components for vehicle repair and maintenance.
What this transaction means for investors
Down 26% year over year as of March 6, the 28-year-old company is currently going through a period of transition. It has been under pressure from activist investor Ananym Capital since October to sell parts of its business. In November, the company announced it had tapped Bank of America to help it sell its specialty parts division, Keystone Automotive Industries, to maximize shareholder value. The division could be worth roughly $1 billion, according to internal valuations. In January, Reuters reported LKQ’s board was exploring strategic options, including a potential sale of the company. And just this week, board director Patrick Berard notified the company that he will not seek re-election to the company's board of directors.
LKQ announced its fourth-quarter and full-year 2025 financial results in February, with CFO and Senior Vice President Rick Galloway highlighting the company’s focus on “simplification and productivity in an uncertain demand environment.” The stock is up more than 4% year to date amid a broader tech sector pullback that has the S&P 500 trading flat to slightly down. The auto parts market is often seen as a safe haven for investors amid economic uncertainty, but operational performance still matters for individual companies.
Should you buy stock in LKQ right now?
Before you buy stock in LKQ, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and LKQ wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $534,817!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,123,912!*
Now, it’s worth noting Stock Advisor’s total average return is 964% — a market-crushing outperformance compared to 192% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of March 6, 2026.
Bank of America is an advertising partner of Motley Fool Money. Sarah Sidlow has positions in Bank of America. The Motley Fool has positions in and recommends Unity Software. The Motley Fool recommends Elastic, LKQ, and RH. The Motley Fool has a disclosure policy.
Recommended Articles
