Key Points
- Director sale: Director Congdon Stacy Loretz sold 75 shares at an average price of $360 on Dec. 12 for $27,000, leaving them with 1,810 shares (a 3.98% reduction).
- Earnings & corporate actions: Lithia beat quarterly estimates with EPS of $9.50 and revenue of $9.68B, recently paid a $0.55 quarterly dividend (0.6% yield) and authorized a $750M share repurchase program (~9% of shares).
- Valuation & analyst view: The stock trades near $346.59 with an $8.4B market cap and a P/E of 10.0, and analysts' consensus is a "Moderate Buy" with an average target of $389.10.
Lithia Motors, Inc. (NYSE:LAD - Get Free Report) Director Congdon Stacy Loretz sold 75 shares of Lithia Motors stock in a transaction that occurred on Friday, December 12th. The shares were sold at an average price of $360.00, for a total transaction of $27,000.00. Following the completion of the transaction, the director owned 1,810 shares of the company's stock, valued at $651,600. This trade represents a 3.98% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link.
Lithia Motors Price Performance
LAD opened at $346.59 on Tuesday. The company's 50 day simple moving average is $312.24 and its 200-day simple moving average is $320.00. The company has a debt-to-equity ratio of 1.35, a current ratio of 1.21 and a quick ratio of 0.30. The stock has a market capitalization of $8.40 billion, a P/E ratio of 10.03, a price-to-earnings-growth ratio of 0.70 and a beta of 1.18. Lithia Motors, Inc. has a one year low of $262.10 and a one year high of $405.14.
Lithia Motors (NYSE:LAD - Get Free Report) last released its quarterly earnings data on Wednesday, October 22nd. The company reported $9.50 earnings per share for the quarter, topping the consensus estimate of $8.53 by $0.97. The business had revenue of $9.68 billion for the quarter, compared to analyst estimates of $9.38 billion. Lithia Motors had a net margin of 2.39% and a return on equity of 13.42%. Lithia Motors's quarterly revenue was up 4.9% compared to the same quarter last year. During the same quarter last year, the firm earned $8.21 EPS. Sell-side analysts anticipate that Lithia Motors, Inc. will post 34.45 earnings per share for the current fiscal year.
Lithia Motors Announces Dividend
The business also recently declared a quarterly dividend, which was paid on Friday, November 21st. Shareholders of record on Friday, November 7th were given a dividend of $0.55 per share. The ex-dividend date of this dividend was Friday, November 7th. This represents a $2.20 annualized dividend and a dividend yield of 0.6%. Lithia Motors's payout ratio is 6.37%.
Lithia Motors announced that its board has approved a stock repurchase plan on Tuesday, August 26th that authorizes the company to repurchase $750.00 million in shares. This repurchase authorization authorizes the company to reacquire up to 9% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's management believes its stock is undervalued.
Analyst Ratings Changes
A number of research analysts recently commented on LAD shares. Citigroup upped their price target on shares of Lithia Motors from $385.00 to $399.00 and gave the company a "buy" rating in a research note on Tuesday, October 28th. Wells Fargo & Company increased their price target on shares of Lithia Motors from $317.00 to $327.00 and gave the stock an "equal weight" rating in a research report on Wednesday, October 15th. Benchmark reissued a "buy" rating on shares of Lithia Motors in a report on Thursday, October 23rd. Bank of America decreased their price target on shares of Lithia Motors from $500.00 to $385.00 and set a "buy" rating for the company in a research report on Wednesday, September 10th. Finally, Barclays assumed coverage on shares of Lithia Motors in a research report on Wednesday, November 12th. They issued an "overweight" rating and a $410.00 price target on the stock. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $389.10.
Check Out Our Latest Stock Analysis on LAD
Hedge Funds Weigh In On Lithia Motors
Hedge funds and other institutional investors have recently modified their holdings of the business. Coppell Advisory Solutions LLC increased its position in shares of Lithia Motors by 10,136,710.0% during the first quarter. Coppell Advisory Solutions LLC now owns 2,027,362 shares of the company's stock valued at $595,112,000 after acquiring an additional 2,027,342 shares during the last quarter. Norges Bank purchased a new position in Lithia Motors in the second quarter worth $148,540,000. Park West Asset Management LLC bought a new position in Lithia Motors in the 1st quarter valued at $58,825,000. Millennium Management LLC increased its position in shares of Lithia Motors by 1,840.6% during the 1st quarter. Millennium Management LLC now owns 181,777 shares of the company's stock valued at $53,359,000 after purchasing an additional 172,410 shares during the last quarter. Finally, Hennessy Advisors Inc. bought a new stake in shares of Lithia Motors during the 3rd quarter worth $39,342,000.
About Lithia Motors
(
Get Free Report)
Lithia Motors, Inc operates as an automotive retailer worldwide. It operates in two segments, Vehicle Operations and Financing Operations. The company's Vehicle Operations segment sells new and used vehicles; provides parts, repair, and maintenance services; vehicle finance; and insurance products. Its Financing Operations segment provides financing to customers buying and leasing retail vehicles.
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