Brokerages Set Lithia Motors, Inc. (NYSE:LAD) Price Target at $436.33

Shares of Lithia Motors, Inc. (NYSE:LAD) have been assigned an average rating of “Moderate Buy” from the eleven ratings firms that are presently covering the firm, Marketbeat reports. Five analysts have rated the stock with a hold rating and six have assigned a buy rating to the company. The average 12 month price objective among brokerages that have updated their coverage on the stock in the last year is $436.3333.

Several research analysts have recently commented on the company. Wall Street Zen upgraded Lithia Motors from a “sell” rating to a “hold” rating in a research note on Saturday, August 1st. Jefferies Financial Group reaffirmed a “buy” rating and set a $490.00 price target on shares of Lithia Motors in a report on Thursday, July 30th. Wells Fargo & Company upped their price objective on shares of Lithia Motors from $306.00 to $395.00 and gave the company an “equal weight” rating in a report on Thursday, July 30th. Benchmark increased their price objective on shares of Lithia Motors from $400.00 to $475.00 and gave the company a “buy” rating in a research report on Thursday, July 30th. Finally, JPMorgan Chase & Co. raised their target price on shares of Lithia Motors from $325.00 to $340.00 and gave the stock a “neutral” rating in a research note on Tuesday, August 4th.

Lithia Motors Price Performance

NYSE LAD opened at $370.63 on Monday. The firm’s 50 day moving average is $344.32 and its 200-day moving average is $301.65. The company has a quick ratio of 0.21, a current ratio of 1.00 and a debt-to-equity ratio of 1.46. The company has a market capitalization of $8.15 billion, a PE ratio of 12.29, a price-to-earnings-growth ratio of 0.78 and a beta of 1.22. Lithia Motors has a 12-month low of $239.78 and a 12-month high of $439.49.

Lithia Motors (NYSE:LAD) last posted 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 firm had revenue of $9.79 billion during the quarter, compared to the consensus estimate of $9.64 billion. Lithia Motors had a return on equity of 12.16% and a net margin of 1.88%.The business’s revenue was up 2.2% compared to the same quarter last year. During the same period last year, the company earned $10.24 earnings per share. Equities research analysts anticipate that Lithia Motors will post 36 earnings per share for the current fiscal year.

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

Lithia Motors Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 21st. Shareholders of record on Friday, August 7th were given a dividend of $0.70 per share. This represents a $2.80 annualized dividend and a yield of 0.8%. This is a boost from Lithia Motors’s previous quarterly dividend of $0.57. The ex-dividend date was Friday, August 7th. Lithia Motors’s dividend payout ratio (DPR) is 9.29%.

Insider Buying and Selling at Lithia Motors

In related news, Director Shauna Mcintyre sold 165 shares of Lithia Motors stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $305.64, for a total transaction of $50,430.60. Following the completion of the sale, the director directly owned 1,681 shares of the company’s stock, valued at approximately $513,780.84. This trade represents a 8.94% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Company insiders own 1.08% of the company’s stock.

Hedge Funds Weigh In On Lithia Motors

Several institutional investors and hedge funds have recently modified their holdings of the business. Parallel Advisors LLC boosted its position in shares of Lithia Motors by 26.8% during the 4th quarter. Parallel Advisors LLC now owns 156 shares of the company’s stock worth $52,000 after acquiring an additional 33 shares in the last quarter. Fifth Third Wealth Advisors LLC raised its holdings in shares of Lithia Motors by 3.8% during the 1st quarter. Fifth Third Wealth Advisors LLC now owns 984 shares of the company’s stock worth $246,000 after buying an additional 36 shares in the last quarter. Vident Advisory LLC lifted its position in shares of Lithia Motors by 4.6% during the 2nd quarter. Vident Advisory LLC now owns 842 shares of the company’s stock worth $285,000 after buying an additional 37 shares during the last quarter. Occudo Quantitative Strategies LP boosted its stake in Lithia Motors by 0.8% in the fourth quarter. Occudo Quantitative Strategies LP now owns 4,616 shares of the company’s stock valued at $1,534,000 after buying an additional 37 shares in the last quarter. Finally, GAMMA Investing LLC raised its stake in Lithia Motors by 32.1% during the second quarter. GAMMA Investing LLC now owns 173 shares of the company’s stock worth $50,000 after acquiring an additional 42 shares in the last quarter.

About Lithia Motors

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.