Why Shares of LKQ Jumped in September
Shares of aftermarket auto parts distributor LKQ (NASDAQ: LKQ) rose by 19.7% in September, according to data from S&P Global Market Intelligence. Virtually the entire gain came on Sept. 12, after investment firm ValueAct Capital filed a Schedule 13D with the Securities and Exchange Commission, indicating it had bought more than 16 million shares in the company.
To get a sense of how the announcement immediately paid off for ValueAct, on the 10th of the month, when it purchased the last of its LKQ shares, they were worth about $440.7 million. By the end of the month, that stake was worth about $504.2 million instead, representing not only a tidy profit, but also about 5.2% of outstanding shares.
LKQ is a top aftermarket auto parts supplier. Image source: Getty Images.
Source Fool.com
