Seizert Capital Partners Doubles Down on Global Auto Parts Play via LKQ

Investment firm Seizert Capital Partners has made another significant bet on LKQ Corporation, a leading distributor in the global auto parts industry. In early February 2026, the fund added another 503,998 shares to its position, marking the seventh consecutive quarter of accumulation. This sustained buying pressure reflects the firm’s conviction that the automotive replacement parts sector presents compelling value opportunities despite headwinds facing the broader industry.

Fund Expands LKQ Position by Over 500K Shares in Latest Quarterly Move

According to SEC filings dated February 2, 2026, Seizert Capital Partners executed the latest tranche of its LKQ buying program, investing approximately $15.20 million during the fourth quarter. The transaction brought the fund’s total stake to 2,178,703 shares, now valued at $65.80 million as of year-end 2025. This represented a net increase of $14.65 million during the quarter, accounting for both the new share acquisition and price movement.

The LKQ position now constitutes 2.78% of Seizert’s 13F reportable assets under management, still trailing the fund’s top five holdings. Goldman Sachs leads the portfolio at $86.08 million (3.6% of AUM), followed by Wells Fargo ($77.81 million, 3.3%), Qualcomm ($76.33 million, 3.2%), JPMorgan Chase ($75.37 million, 3.2%), and Alphabet ($74.50 million, 3.1%).

The quarter-end portfolio data underscores a broader investment thesis: despite a pullback to $32.52 per share (down 11.1% annually and trailing the S&P 500 by 2,500 basis points), Seizert sees an asymmetric risk-reward setup in the global auto parts distributor.

Global Auto Parts Distributor Faces Existential Autonomous Vehicle Challenge

LKQ’s business model rests on distributing replacement parts, components, and systems across North America and Europe. The company operates through a multi-segment wholesale network serving collision repair shops, mechanical repair facilities, dealerships, and retail consumers. This diversified distribution approach has long been the company’s moat, but structural headwinds now threaten the entire premise.

The autonomous vehicle question looms large over LKQ’s long-term prospects. Sales growth has decelerated sharply—from 8% annually over the past decade to just 3% in 2025. While still outpacing overall market growth, the trend signals industry maturation and potential obsolescence risk. If autonomous vehicles achieve mainstream adoption in major metropolitan areas across North America and Europe, demand for replacement parts could contract dramatically. Vehicles that never crash or break down would gut the economics of traditional replacement parts distribution.

That said, this doomsday scenario remains distant. Cold-weather driving in northern climates (think Minnesota winters or Canadian highways) represents terrain where autonomous technology may struggle for years. Rural markets and secondary cities may retain high accident rates regardless of AV penetration. LKQ will likely maintain some market relevance even in an autonomous-heavy future, but the scope and scale of opportunity remains uncertain.

Why Current Valuation Makes LKQ an Attractive Income Play

From a valuation standpoint, LKQ doesn’t demand much growth to justify current pricing. At just 1.3 times book value and 12 times free cash flow, the stock qualifies as genuinely cheap for the dominant player in global auto parts distribution. Management’s actions reinforce this assessment: the company has executed aggressive share buybacks, reducing share count by 3.6% annually over the past five years. This capital discipline, combined with a growing dividend now yielding 3.63%, has transformed LKQ from a traditional growth stock into an income-focused investment.

The shift reflects managerial pragmatism. Rather than chase growth in a maturing industry, LKQ’s leadership has pivoted toward shareholder returns through buybacks and dividends. This approach works well in low-growth, stable-margin businesses, particularly when management believes shares are undervalued relative to intrinsic worth.

Investment Implications and Investor Considerations

Seizert’s seven-quarter accumulation pattern suggests institutional confidence despite industry headwinds. The fund’s willingness to keep buying while shares declined from $50 to $33 indicates either deep conviction or contrarian positioning—possibly both. At current valuations, LKQ doesn’t require significant growth acceleration to generate acceptable returns; modest cash flow generation plus dividend yield could deliver mid-single-digit annual returns.

However, investors should weigh the autonomous vehicle uncertainty carefully. The company’s shrinking sales growth rate and structural industry challenges warrant consideration. LKQ might prove to be a successful niche player in the autonomous era, capturing steady cash flows from repair-averse consumers, fleet operators, and developing markets. Alternatively, accelerated AV adoption could prove more disruptive than current analysis assumes.

The global auto parts distributor’s current valuation offers a margin of safety that may justify patient capital, but the investment thesis hinges on LKQ successfully navigating a rapidly transforming automotive landscape while maintaining pricing power and market share in an increasingly competitive environment.