Toronto, Ontario -- This week's Tuesday Ticker takes a closer look at the stock performance of several U.S. automotive aftermarket behemoths that have issued significant corporate updates over the past 10 days.
Motorcar Parts of America, a California company that remanufactures and distributes alternators, starters, brake components and other replacement parts, expanded a share-buyback program to US$57 million. Chief executive Selwyn Joffe said the increase “reflects our confidence in the future of the business.” On the day the news was released the stock jumped about four percent. Over the past 10 days it has moved from roughly US$13.18 to about US$13.25 — up about US$0.07 or 0.5 percent overall.
LKQ Corporation, an Illinois distributor of recycled, aftermarket and specialty automotive parts used by collision and mechanical repairers, announced it is evaluating a sale of its Specialty segment, which includes Keystone Automotive. In an emailed statement accompanying the announcement, chief executive Dominick Zarcone said the company is reviewing options “to unlock its full potential” under new ownership. Since that update, LKQ shares have slipped from about US$29.69 to around US$28.94 — down roughly US$0.75 or about 2.5 percent over 10 days.
Driven Brands, a North Carolina operator of paint, collision, glass, mechanical and maintenance service networks, confirmed the sale of its international car-wash business, IMO. President and chief executive Jonathan Fitzpatrick said the deal will “sharpen our focus on what we do best — scaling Take 5 and driving consistent cash generation.” Since the announcement, Driven Brands’ share price has moved from about US$14.61 to roughly US$15.08 — up about US$0.47 or close to 3.2 percent in 10 days.
