Update (4:11 p.m. EST): Updated with closing price, day high and low prices, price change and volume information.
NEW YORK (TheStreet) -- LKQ (LKQ) plunged 8.76% to $29.46, down $2.83 from its previous close of $32.29, at the close of the trading day on Wednesday after Prescience Point downgraded the stock to a strong sell.
The stock had a volume of 22,834,111, more than 20 times more than its average of 1,175,630. It hit a high of $32.04 and a low of $26.25 for the day.
The firm called LKQ, which provides various auto parts, an "ineffective roll-up" that "has generated no cumulative free cash flow adjusted for acquisitions" and "become increasingly dependent on external capital to perpetuate the illusion of GAAP profits." Furthermore, Prescience said LKQ is "caught in a massive margin squeeze" and called it a "dramatic overvaluation."
Prescience set the target price range of the stock at $10 to $15 with 50% to 70% downside.
TheStreet Ratings team rates LKQ CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about its recommendation:
"We rate LKQ CORP (LKQ) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, compelling growth in net income, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."