Kettle Hill Builds $35 Million Position in LKQ as Stock Slides 19%

Core Insights - Kettle Hill Capital Management acquired a new position in LKQ, purchasing 1,163,355 shares valued at approximately $35.53 million, which represents 7.99% of the fund's reported U.S. equity assets [1][2][10] - LKQ is now the largest equity holding for Kettle Hill Capital Management, with total positions increasing to 36 at the end of the quarter [2][10] - LKQ's stock has underperformed, with a price of $29.45 as of December 5, 2025, down 19.23% over the past year and lagging the S&P 500 by 34.82 percentage points [3][11] Company Overview - LKQ Corporation is a leading global distributor of automotive replacement parts, offering both new and recycled parts to a diverse customer base [6][9] - The company reported trailing twelve months (TTM) revenue of $13.96 billion and net income of $697 million, with a market capitalization of $7.95 billion [4][10] - LKQ's business model includes wholesale distribution to repair shops, dealerships, and retail customers, focusing on cost-effective vehicle repair and maintenance solutions [9][10] Performance Metrics - LKQ's shares have decreased by 8% over the last five years, resulting in a negative compound annual growth rate (CAGR) of -1.7% [11] - In contrast, the S&P 500 has more than doubled in value during the same period, achieving a CAGR of 15.1% [11] - The company has a dividend yield of 3.87% [3]