Brokerages Set Lithia Motors, Inc. (NYSE:LAD) PT at $389.10

Lithia Motors, Inc. (NYSE:LAD) has earned an average recommendation of “Moderate Buy” from the eleven ratings firms that are presently covering the firm, MarketBeat.com reports. Three research analysts have rated the stock with a hold rating, seven have issued a buy rating and one has assigned a strong buy rating to the company. The average 1 year target price among analysts that have issued a report on the stock in the last year is $389.10.

A number of research analysts recently commented on the company. Barclays began coverage on Lithia Motors in a research note on Wednesday, November 12th. They issued an “overweight” rating and a $410.00 target price for the company. Evercore ISI increased their price target on shares of Lithia Motors from $440.00 to $500.00 and gave the stock an “outperform” rating in a research report on Monday, November 24th. Jefferies Financial Group initiated coverage on Lithia Motors in a report on Thursday, September 4th. They set a “buy” rating and a $400.00 price objective on the stock. Citigroup raised their target price on Lithia Motors from $385.00 to $399.00 and gave the stock a “buy” rating in a research report on Tuesday, October 28th. Finally, Bank of America lowered their price target on Lithia Motors from $500.00 to $385.00 and set a “buy” rating on the stock in a research report on Wednesday, September 10th.

Lithia Motors Stock Performance

Shares of LAD traded up $3.82 during mid-day trading on Wednesday, hitting $346.06. The company’s stock had a trading volume of 8,258 shares, compared to its average volume of 325,969. The stock’s 50-day moving average is $316.88 and its two-hundred day moving average is $321.06. The firm has a market capitalization of $8.39 billion, a PE ratio of 10.00 and a beta of 1.18. The company has a debt-to-equity ratio of 1.35, a quick ratio of 0.30 and a current ratio of 1.21. Lithia Motors has a one year low of $262.10 and a one year high of $405.14.

Lithia Motors (NYSE:LAD) last posted its quarterly earnings results on Wednesday, October 22nd. The company reported $9.50 earnings per share (EPS) for the quarter, topping the consensus estimate of $8.53 by $0.97. Lithia Motors had a net margin of 2.39% and a return on equity of 13.42%. The company had revenue of $9.68 billion for the quarter, compared to analyst estimates of $9.38 billion. During the same period last year, the business posted $8.21 EPS. The business’s quarterly revenue was up 4.9% on a year-over-year basis. As a group, sell-side analysts anticipate that Lithia Motors will post 34.45 EPS for the current year.

Lithia Motors Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, November 21st. Investors of record on Friday, November 7th were given a dividend of $0.55 per share. The ex-dividend date was Friday, November 7th. This represents a $2.20 dividend on an annualized basis and a dividend yield of 0.6%. Lithia Motors’s dividend payout ratio (DPR) is 6.37%.

Lithia Motors declared that its board has initiated a share repurchase plan on Tuesday, August 26th that permits the company to repurchase $750.00 million in shares. This repurchase authorization permits the company to reacquire up to 9% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s management believes its stock is undervalued.

Insider Buying and Selling at Lithia Motors

In other Lithia Motors news, Director Congdon Stacy Loretz sold 75 shares of the company’s stock in a transaction on Friday, December 12th. The stock was sold at an average price of $360.00, for a total transaction of $27,000.00. Following the transaction, the director owned 1,810 shares of the company’s stock, valued at approximately $651,600. This represents a 3.98% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.87% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Lithia Motors

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in LAD. CoreCap Advisors LLC bought a new stake in shares of Lithia Motors in the 3rd quarter valued at about $26,000. Bessemer Group Inc. grew its holdings in Lithia Motors by 114.6% during the second quarter. Bessemer Group Inc. now owns 88 shares of the company’s stock valued at $29,000 after purchasing an additional 47 shares during the period. Hantz Financial Services Inc. increased its stake in Lithia Motors by 1,383.3% in the second quarter. Hantz Financial Services Inc. now owns 89 shares of the company’s stock valued at $30,000 after purchasing an additional 83 shares in the last quarter. Eastern Bank acquired a new stake in Lithia Motors in the third quarter worth $31,000. Finally, Root Financial Partners LLC acquired a new position in shares of Lithia Motors in the 3rd quarter valued at $31,000.

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.