Automotive Parts Stock Down 31% Draws $16 Million Bet as Earnings Fall 50% Year Over Year

By Jonathan Ponciano – Mar 20, 2026 at 1:36PM ESTKey PointsPetrus Trust acquired 520,000 shares of LKQ in the fourth quarter.The quarter-end LKQ position value increased by $15.70 million, reflecting the new purchase.LKQ represents 1.59% of the fund’s reportable U.S. equity assets, which places it outside the fund's top five holdings.Petrus Trust Company, LTA initiated a new position in LKQ (LKQ 2.03%), buying 520,000 shares in the fourth quarter, according to a February 17, 2026, SEC filing.What happenedAccording to a SEC filing dated February 17, 2026, Petrus Trust Company established a new 520,000-share position in LKQ during the fourth quarter. The fund reported a quarter-end position in LKQ of $15.70 million, reflecting the purchase and any price changes during the period.What else to knowLKQ now accounts for 1.59% of Petrus Trust’s reportable 13F assets.Top holdings after the filing:NYSEMKT:SPY: $216.39 million (21.9% of AUM)NASDAQ:MSFT: $72.48 million (7.3% of AUM)NYSE:CPAY: $71.38 million (7.2% of AUM)NASDAQ:AMZN: $70.99 million (7.2% of AUM)NYSE:AON: $50.81 million (5.1% of AUM)As of Friday, LKQ shares were priced at $28.11, down about 31% over the past year and well underperforming the S&P 500’s roughly 16% gain in the same period.Company overviewMetricValuePrice (as of Friday)$28.11Market capitalization$7.2 billionRevenue (TTM)$13.96 billionNet income (TTM)$607.00 millionCompany snapshotLKQ distributes automotive replacement parts, components, and systems, including body panels, bumpers, glass, mechanical parts, and specialty products for vehicles and recreational vehicles.The company operates a distribution-driven business model, sourcing and supplying new and recycled parts to the automotive aftermarket across North America and Europe.It serves collision and mechanical repair shops, new and used car dealerships, and retail customers in the United States, Canada, and multiple European markets.LKQ Corporation is a leading distributor of automotive replacement parts and related products, with a global footprint spanning North America and Europe. The company leverages an extensive supply chain and distribution network to deliver a broad assortment of new and recycled automotive parts. LKQ's scale, multi-segment operations, and diverse customer base provide resilience and a competitive advantage in the automotive aftermarket sector.What this transaction means for investorsLKQ is still generating significant cash, but the market seems focused almost entirely on near-term earnings pressure, and the company’s latest results show the tension clearly. Revenue in the fourth quarter edged higher to $3.3 billion, up from $3.2 billion a year earlier, but profitability took a hit, with net income falling to $75 million and diluted EPS dropping to $0.29, down 50% year over year. At the same time, the business continued to produce strong cash flow, generating about $1.1 billion in operating cash flow and $847 million in free cash flow for the full year.That puts the spotlight on earnings, and management is seemingly doing its part, having responded with cost actions expected to deliver more than $50 million in annual savings, more than half expected to be realized this year, and it’s also exploring strategic alternatives to create value.Within a portfolio still anchored by megacap tech and index exposure, this position adds a different kind of lever: steady aftermarket demand, pricing power over time, and meaningful capital return. Now the question is whether margin pressure is temporary or structural.About the AuthorJonathan Ponciano is a contributing stock market analyst at The Motley Fool. He has nearly a decade of experience as a financial journalist, most recently as an editor and senior reporter at Forbes focused on markets, technology, and entrepreneurship. Jonathan has also written for Investopedia and the Los Angeles Business Journal. He holds a dual B.A. in Business Journalism and Economics from the University of North Carolina at Chapel Hill and an M.B.A. from Columbia Business School. A North Carolina native now based in New York City, Jonathan has also lived in Mexico City and Los Angeles.CMFjonponcStocks MentionedLKQNASDAQ: LKQ$27.98(-2.03%)-$0.58*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.