Shares of Lithia Motors, Inc. (NYSE:LAD – Get Free Report) traded down 4.4% on Thursday . The company traded as low as $339.22 and last traded at $324.22. 38,415 shares changed hands during mid-day trading, a decline of 87% from the average daily volume of 302,071 shares. The stock had previously closed at $339.23.
Wall Street Analysts Forecast Growth
LAD has been the subject of several analyst reports. Benchmark boosted their target price on Lithia Motors from $400.00 to $475.00 and gave the stock a “buy” rating in a report on Thursday, July 30th. Wall Street Zen raised shares of Lithia Motors from a “sell” rating to a “hold” rating in a research report on Saturday, August 1st. UBS Group cut shares of Lithia Motors from a “buy” rating to a “neutral” rating and boosted their price objective for the stock from $370.00 to $440.00 in a research note on Thursday, July 30th. Citigroup upped their price objective on shares of Lithia Motors from $365.00 to $455.00 and gave the stock a “buy” rating in a report on Monday, August 3rd. Finally, JPMorgan Chase & Co. raised their target price on shares of Lithia Motors from $325.00 to $340.00 and gave the company a “neutral” rating in a research note on Tuesday, August 4th. Six research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $436.33.
Read Our Latest Stock Analysis on Lithia Motors
Lithia Motors Stock Performance
Lithia Motors (NYSE:LAD – Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The company reported $10.03 EPS for the quarter, topping analysts’ consensus estimates of $8.73 by $1.30. Lithia Motors had a return on equity of 12.16% and a net margin of 1.88%.The company had revenue of $9.79 billion during the quarter, compared to analyst estimates of $9.64 billion. During the same period in the previous year, the company earned $10.24 earnings per share. The company’s quarterly revenue was up 2.2% compared to the same quarter last year. On average, research analysts predict that Lithia Motors, Inc. will post 36 EPS for the current fiscal year.
Lithia Motors Increases Dividend
The business also recently announced a quarterly dividend, which was paid on Friday, August 21st. Investors of record on Friday, August 7th were paid a dividend of $0.70 per share. This represents a $2.80 annualized dividend and a yield of 0.9%. The ex-dividend date was Friday, August 7th. This is an increase from Lithia Motors’s previous quarterly dividend of $0.57. Lithia Motors’s dividend payout ratio is currently 9.29%.
Lithia Motors declared that its board has approved a stock buyback plan on Tuesday, May 26th that authorizes the company to buyback $500.00 million in shares. This buyback authorization authorizes the company to purchase up to 7.9% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s board of directors believes its shares are undervalued.
Insiders Place Their Bets
In other Lithia Motors news, Director Stacy Congdon sold 75 shares of the firm’s 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 directly owned 2,300 shares in the company, valued at $852,679. This trade represents a 3.16% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.08% of the stock is currently owned by company insiders.
Hedge Funds Weigh In On Lithia Motors
Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Sequoia Financial Advisors LLC acquired a new position in Lithia Motors in the 2nd quarter valued at approximately $241,000. Tidal Investments LLC grew its holdings in shares of Lithia Motors by 10.9% during the 2nd quarter. Tidal Investments LLC now owns 3,694 shares of the company’s stock worth $1,073,000 after purchasing an additional 363 shares in the last quarter. WINTON GROUP Ltd bought a new stake in shares of Lithia Motors during the second quarter valued at approximately $4,811,000. Engineers Gate Manager LP bought a new stake in shares of Lithia Motors during the second quarter valued at approximately $770,000. Finally, Cidel Asset Management Inc. acquired a new position in shares of Lithia Motors in the second quarter valued at $211,000.
About Lithia Motors
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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