LKQ Corporation (NASDAQ:LKQ) filed an SEC Form 4, which is a statement for the change in beneficial ownership of securities, on Wednesday. As per the document, CEO Rob Wagman has raised his personal stake in the company by roughly $318k, after adjusting for taxable gains.

LKQ management doing a good job

In many of the recent conferences, investors have questioned the management of LKQ Corporation (NASDAQ:LKQ) as to why they are not raising the insider ownership despite the YTD underperformance. Analysts James J. Albertine and Lucy Webster from Stifel believe that the management has aptly answered the inquiries, citing the restrictions imposed by the SEC rules governing the purchases by Section 16-filers that prohibit the purchase within months of one another.

However, LKQ took advantage of an exception related to the vested shares. Analysts believe that the action taken by the management was partly to address the concerns of investors regarding the business model of the company.

Analysts approve of the decision taken by LKQ Corporation (NASDAQ:LKQ), saying “In light of a potential corporate share repurchase announcement, we agree with management’s” decision that the authorization would be in contrast to the company’s core business strategy of fueling growth via acquisition, which has benefited LKQ well since its IPO.

Analysts expect a substantial upside

Analysts are positive on LKQ Corporation (NASDAQ:LKQ) shares, and on the long term outlook with increased margin primarily due to the operating expense leverage, which are largely driven by M&A activities. The consensus estimates are conservative, according to analysts, considering the FY16, when the acquisitions of Sator and Keystone are expected to enhance its already substantial leverage. According to analysts, the current valuation “more than compensates/discounts for the ongoing risks of managing an M&A-driven, high-growth business.”

Analysts have a Buy rating on LKQ Corporation (NASDAQ:LKQ), and have maintained a $39 price target. A substantial upside is expected in LKQ shares, “in the year ahead as we believe the recent sell-off is overdone and the market nears positive inflection in vehicle collision activity.” For the first quarter, results were affected due to the body shop closures because of winter storms, however, backlog for collision repairs and M&A pipeline look strong.

According to analysts, LKQ Corporation (NASDAQ:LKQ) is a “rare high-growth investment opportunity with global reach in a fragmented market with significant barriers to entry for aspiring consolidators.”

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