This Adviser Walked Away From an $11 Million Auto Parts Stock Down 8% This Past Year

13 hours ago 2

Jonathan Ponciano, The Motley Fool

Fri, January 9, 2026 astatine 9:06 AM CST 5 min read

Houston-based Goodman Financial sold each of its antecedently held 355,108 LKQ shares successful the 4th quarter.
The estimated transaction worth was $10.85 million.
LKQ was antecedently 2.11% of money AUM arsenic of the anterior quarter.
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On Thusday, Goodman Financial Corp disclosed successful an SEC filing that it sold retired of LKQ (NASDAQ:LKQ), exiting 355,108 shares successful a transaction estimated astatine $10.85 cardinal based connected quarterly mean pricing.

According to an SEC filing releaesd Thursday, Goodman Financial Corp sold its full holding of 355,108 shares successful LKQ (NASDAQ:LKQ). The estimated worth of the commercialized was astir $10.85 million.

Top holdings aft the filing:

NYSEMKT: SPDW: $36.34 cardinal (6.9% of AUM)
NASDAQ: VCSH: $31.52 cardinal (6.0% of AUM)
NASDAQ: NXT: $28.75 cardinal (5.4% of AUM)
NASDAQ: VMBS: $23.61 cardinal (4.5% of AUM)
NYSE: SCHW: $19.80 cardinal (3.7% of AUM)

As of Friday, LKQ shares were priced astatine $33.19, down 8% implicit the past twelvemonth and good underperforming the S&P 500, which is alternatively up astir 17% successful the aforesaid period.

Metric

Value

Revenue (TTM)	$14.10 billion
Net Income (TTM)	$697.00 million
Dividend Yield	3.6%
Price (as of Monday)	$33.19

LKQ Corporation offers a wide scope of replacement parts, components, and systems for conveyance repair and maintenance, including assemblage panels, mechanical parts, glass, and specialty products for recreational vehicles.
The institution generates gross by distributing some caller and recycled automotive parts done operations successful North America and Europe.
It serves collision and mechanical repair shops, caller and utilized car dealerships, and retail customers successful the automotive aftermarket sector.

LKQ Corporation distributes caller and recycled automotive parts crossed North America and Europe, serving repair shops and dealerships. LKQ is simply a starring distributor of automotive replacement parts, operating astatine standard crossed North America and Europe. Through its diversified portfolio and extended organisation network, the institution addresses the needs of repair professionals and dealerships seeking cost-effective, high-quality alternatives to archetypal instrumentality parts. LKQ's strategy emphasizes operational ratio and wide merchandise coverage, positioning it arsenic a cardinal supplier successful the planetary automotive aftermarket.

What makes this determination worthy focusing connected is not the merchantability itself, but the timing. Exiting an underperforming cyclical sanction portion the broader marketplace pushes higher suggests a reassessment of accidental outgo alternatively than a abrupt nonaccomplishment of religion successful the concern model. For semipermanent investors, that favoritism matters.

With LKQ underperforming implicit the past twelvemonth portion the broader marketplace pushed higher, Goodman is seemingly reassessing its accidental outgo arsenic the company’s fundamentals stay solid, but uneven. In the 3rd quarter, gross roseate 1.3% to $3.5 billion, but adjusted EPS slipped to $0.84 from $0.86 a twelvemonth earlier. Meanwhile, absorption raised the midpoint of its full-year adjusted EPS outlook to $3.00 to $3.15 pursuing the merchantability of its Self Service segment, and escaped currency travel deed $387 cardinal for the quarter.

The wide portfolio leans heavy toward wide equity and fixed-income ETFs, with sizable positions successful planetary stocks, short-duration bonds, and a astir $20 cardinal involvement successful Charles Schwab. That premix suggests a penchant for liquidity, diversification, and equilibrium implicit single-name cyclicals, peculiarly if those cyclicals are underperforming.