Lithia Motors, Inc. (NYSE:LAD) Given Average Recommendation of “Moderate Buy” by Analysts

Shares of Lithia Motors, Inc. (NYSE:LAD) have received an average rating of “Moderate Buy” from the twelve research firms that are presently covering the stock, MarketBeat reports. Five analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company. The average 1 year price objective among brokerages that have issued ratings on the stock in the last year is $423.70.

Several equities analysts have recently issued reports on the company. Citigroup boosted their price objective on Lithia Motors from $365.00 to $455.00 and gave the company a “buy” rating in a report on Monday. Wells Fargo & Company raised their target price on Lithia Motors from $306.00 to $395.00 and gave the stock an “equal weight” rating in a report on Thursday, July 30th. Zacks Research upgraded Lithia Motors from a “strong sell” rating to a “hold” rating in a research report on Thursday, April 23rd. Jefferies Financial Group reissued a “buy” rating and issued a $490.00 price target on shares of Lithia Motors in a report on Thursday. Finally, JPMorgan Chase & Co. upped their price objective on Lithia Motors from $320.00 to $325.00 and gave the stock a “neutral” rating in a research report on Thursday, May 7th.

Lithia Motors Trading Down 1.9%

NYSE LAD opened at $378.07 on Thursday. The company has a market capitalization of $8.62 billion, a PE ratio of 12.54, a P/E/G ratio of 0.84 and a beta of 1.22. The company has a fifty day moving average of $315.79 and a 200 day moving average of $296.06. Lithia Motors has a 1 year low of $239.78 and a 1 year high of $439.49. The company has a debt-to-equity ratio of 1.46, a current ratio of 1.00 and a quick ratio of 0.21.

Lithia Motors (NYSE:LAD) last posted its quarterly earnings results on Wednesday, July 29th. The company reported $10.03 EPS for the quarter, beating the consensus estimate of $8.73 by $1.30. The company had revenue of $9.79 billion for the quarter, compared to analyst estimates of $9.64 billion. Lithia Motors had a net margin of 1.88% and a return on equity of 12.16%. The firm’s revenue was up 2.2% on a year-over-year basis. During the same period in the prior year, the company earned $10.24 earnings per share. Research analysts forecast that Lithia Motors will post 34.9 earnings per share for the current year.

Lithia Motors announced that its Board of Directors has initiated a share buyback program on Tuesday, May 26th that permits the company to buyback $500.00 million in outstanding shares. This buyback authorization permits the company to repurchase up to 7.9% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s board believes its stock is undervalued.

Lithia Motors Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, August 21st. Investors of record on Friday, August 7th will be paid a $0.70 dividend. The ex-dividend date is Friday, August 7th. This represents a $2.80 annualized dividend and a dividend yield of 0.7%. This is an increase from Lithia Motors’s previous quarterly dividend of $0.57. Lithia Motors’s dividend payout ratio (DPR) is presently 7.56%.

Insider Buying and Selling at Lithia Motors

In related news, Director Richard J. Bailey, Jr. sold 297 shares of the firm’s stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $280.57, for a total transaction of $83,329.29. Following the sale, the director owned 760 shares in the company, valued at approximately $213,233.20. This trade represents a 28.10% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Shauna Mcintyre sold 165 shares of Lithia Motors stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $305.64, for a total transaction of $50,430.60. Following the completion of the transaction, the director directly owned 1,681 shares of the company’s stock, valued at $513,780.84. The trade was a 8.94% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 782 shares of company stock worth $229,572. 1.08% of the stock is owned by company insiders.

Hedge Funds Weigh In On Lithia Motors

Several institutional investors and hedge funds have recently modified their holdings of LAD. Parallel Advisors LLC lifted its stake in Lithia Motors by 26.8% in the 4th quarter. Parallel Advisors LLC now owns 156 shares of the company’s stock worth $52,000 after purchasing an additional 33 shares in the last quarter. Fifth Third Wealth Advisors LLC grew its position in shares of Lithia Motors by 3.8% during the first quarter. Fifth Third Wealth Advisors LLC now owns 984 shares of the company’s stock valued at $246,000 after purchasing an additional 36 shares in the last quarter. Vident Advisory LLC increased its holdings in shares of Lithia Motors by 4.6% in the second quarter. Vident Advisory LLC now owns 842 shares of the company’s stock worth $285,000 after purchasing an additional 37 shares during the last quarter. Occudo Quantitative Strategies LP lifted its position in shares of Lithia Motors by 0.8% in the fourth quarter. Occudo Quantitative Strategies LP now owns 4,616 shares of the company’s stock worth $1,534,000 after buying an additional 37 shares in the last quarter. Finally, GAMMA Investing LLC lifted its position in shares of Lithia Motors by 32.1% in the second quarter. GAMMA Investing LLC now owns 173 shares of the company’s stock worth $50,000 after buying an additional 42 shares in the last quarter.

Lithia Motors Company Profile

Lithia Motors, Inc is an American automotive retailer headquartered in Medford, Oregon. Founded in 1946 as a small auto body and glass shop, the company has grown through organic expansion and strategic acquisitions to become one of the largest automotive retail networks in North America. Lithia operates dealerships across the United States and Canada, offering a broad portfolio of new and pre-owned vehicles from more than 40 different manufacturers.

The company’s core business activities include vehicle sales, financing, insurance, parts and service.