Key Points
- Director Stacy Congdon sold 75 Lithia Motors shares at an average price of $370.73, reducing her holdings by 3.16% to 2,300 shares. The transaction was made under a pre-arranged Rule 10b5-1 trading plan.
- Lithia Motors exceeded quarterly expectations, reporting $10.03 in EPS versus the $8.73 consensus and $9.79 billion in revenue. Revenue increased 2.2% year over year.
- The company authorized a $500 million share buyback and raised its quarterly dividend to $0.70 per share. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $436.33.
Lithia Motors, Inc. (NYSE:LAD - Get Free Report) Director Stacy Congdon sold 75 shares of the stock in a transaction on Friday, September 11th. The shares were sold at an average price of $370.73, for a total value of $27,804.75. Following the sale, the director owned 2,300 shares of the company's stock, valued at $852,679. This trade represents a 3.16% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Lithia Motors Stock Performance
Shares of NYSE LAD opened at $360.61 on Tuesday. The stock's fifty day simple moving average is $360.31 and its 200 day simple moving average is $307.01. The stock has a market capitalization of $7.93 billion, a price-to-earnings ratio of 11.96, a PEG ratio of 0.75 and a beta of 1.23. The company has a quick ratio of 0.21, a current ratio of 1.00 and a debt-to-equity ratio of 1.46. Lithia Motors, Inc. has a 52-week low of $239.78 and a 52-week high of $439.49.
Lithia Motors (NYSE:LAD - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The company reported $10.03 earnings per share for the quarter, beating analysts' consensus estimates of $8.73 by $1.30. The business had revenue of $9.79 billion during the quarter, compared to analyst estimates of $9.64 billion. Lithia Motors had a return on equity of 12.16% and a net margin of 1.88%.Lithia Motors's revenue for the quarter was up 2.2% on a year-over-year basis. During the same quarter last year, the company posted $10.24 EPS. As a group, sell-side analysts forecast that Lithia Motors, Inc. will post 36 earnings per share for the current fiscal year.
Lithia Motors announced that its board has initiated a share buyback plan on Tuesday, May 26th that permits the company to buyback $500.00 million in outstanding shares. This buyback authorization permits the company to reacquire up to 7.9% of its stock through open market purchases. Stock buyback plans are usually a sign that the company's board of directors believes its shares are undervalued.
Lithia Motors Increases Dividend
The company also recently announced a quarterly dividend, which was paid on Friday, August 21st. Stockholders of record on Friday, August 7th were given a $0.70 dividend. This represents a $2.80 annualized dividend and a dividend yield of 0.8%. This is an increase from Lithia Motors's previous quarterly dividend of $0.57. The ex-dividend date of this dividend was Friday, August 7th. Lithia Motors's payout ratio is 9.29%.
Wall Street Analysts Forecast Growth
A number of equities analysts recently commented on LAD shares. Jefferies Financial Group reaffirmed a "buy" rating and issued a $490.00 price objective on shares of Lithia Motors in a research note on Thursday, July 30th. Citigroup increased their target price on Lithia Motors from $365.00 to $455.00 and gave the company a "buy" rating in a report on Monday, August 3rd. Barclays raised their target price on Lithia Motors from $360.00 to $415.00 and gave the stock an "overweight" rating in a research report on Wednesday, August 19th. JPMorgan Chase & Co. upped their price target on Lithia Motors from $325.00 to $340.00 and gave the company a "neutral" rating in a research report on Tuesday, August 4th. Finally, Wall Street Zen raised Lithia Motors from a "sell" rating to a "hold" rating in a research note on Saturday, August 1st. Six research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat, Lithia Motors has a consensus rating of "Moderate Buy" and a consensus target price of $436.33.
Check Out Our Latest Stock Report on Lithia Motors
Institutional Inflows and Outflows
A number of hedge funds have recently made changes to their positions in the stock. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in Lithia Motors in the 2nd quarter worth approximately $30,000. Addison Advisors LLC acquired a new position in Lithia Motors during the second quarter valued at approximately $30,000. Clearstead Advisors LLC raised its position in shares of Lithia Motors by 111.4% in the fourth quarter. Clearstead Advisors LLC now owns 93 shares of the company's stock valued at $31,000 after purchasing an additional 49 shares during the period. Versant Capital Management Inc lifted its stake in shares of Lithia Motors by 1,311.1% in the second quarter. Versant Capital Management Inc now owns 127 shares of the company's stock worth $37,000 after buying an additional 118 shares during the last quarter. Finally, Bessemer Group Inc. lifted its stake in shares of Lithia Motors by 68.0% in the first quarter. Bessemer Group Inc. now owns 173 shares of the company's stock worth $43,000 after buying an additional 70 shares during the last quarter.
Lithia Motors Company Profile
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Get Free Report)
Lithia Motors, operating under the Lithia & Driveway name, is an automotive retail company that sells new and used vehicles through a network of dealerships and digital channels. Its retail operations represent numerous automobile manufacturers and provide customers with vehicle purchasing, financing, leasing and protection products.
The company also operates parts and service departments that provide maintenance, repairs, collision work and replacement parts. Through its Driveway platform, Lithia offers online vehicle shopping, financing, trade-ins and delivery services, extending its automotive retail model beyond traditional dealership locations.
Founded in 1946 in Ashland, Oregon, Lithia Motors has expanded through acquisitions and dealership development.
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