Lithia Motors, Inc. (NYSE:LAD) Raises Dividend to $0.53 Per Share

Lithia Motors, Inc. (NYSE:LAD) announced a quarterly dividend on Wednesday, April 24th, Zacks reports. Stockholders of record on Friday, May 10th will be paid a dividend of 0.53 per share on Friday, May 24th. This represents a $2.12 annualized dividend and a dividend yield of 0.80%. The ex-dividend date of this dividend is Thursday, May 9th. This is a positive change from Lithia Motors’s previous quarterly dividend of $0.50.

Lithia Motors has raised its dividend by an average of 16.3% annually over the last three years and has increased its dividend every year for the last 15 years. Lithia Motors has a dividend payout ratio of 5.9% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Lithia Motors to earn $39.26 per share next year, which means the company should continue to be able to cover its $2.12 annual dividend with an expected future payout ratio of 5.4%.

Lithia Motors Stock Performance

Shares of LAD opened at $263.46 on Wednesday. The company has a debt-to-equity ratio of 1.17, a current ratio of 1.17 and a quick ratio of 0.28. The stock has a 50-day moving average of $278.41 and a 200-day moving average of $283.21. The company has a market cap of $7.22 billion, a PE ratio of 7.78, a P/E/G ratio of 2.31 and a beta of 1.59. Lithia Motors has a one year low of $207.08 and a one year high of $331.96.

Lithia Motors (NYSE:LAD) last issued its earnings results on Wednesday, April 24th. The company reported $6.11 EPS for the quarter, missing the consensus estimate of $7.85 by ($1.74). The firm had revenue of $8.56 billion during the quarter, compared to analyst estimates of $8.58 billion. Lithia Motors had a net margin of 2.87% and a return on equity of 15.62%. The business’s quarterly revenue was up 22.7% on a year-over-year basis. During the same quarter in the prior year, the business earned $8.44 earnings per share. On average, equities research analysts predict that Lithia Motors will post 32.24 EPS for the current fiscal year.

Insiders Place Their Bets

In other Lithia Motors news, Director Shauna Mcintyre sold 135 shares of Lithia Motors stock in a transaction that occurred on Friday, February 16th. The shares were sold at an average price of $297.84, for a total transaction of $40,208.40. Following the transaction, the director now owns 1,662 shares of the company’s stock, valued at approximately $495,010.08. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Insiders own 1.79% of the company’s stock.

Wall Street Analyst Weigh In

Several analysts have recently commented on the company. StockNews.com upgraded Lithia Motors from a “sell” rating to a “hold” rating in a research note on Friday, April 26th. Evercore ISI began coverage on shares of Lithia Motors in a research report on Wednesday, January 17th. They issued an “outperform” rating and a $400.00 price target on the stock. Morgan Stanley raised their price target on shares of Lithia Motors from $220.00 to $230.00 and gave the company an “underweight” rating in a research report on Thursday, February 29th. Craig Hallum dropped their price target on shares of Lithia Motors from $350.00 to $310.00 and set a “buy” rating on the stock in a research report on Thursday, April 25th. Finally, Stephens reaffirmed an “overweight” rating and issued a $375.00 price target on shares of Lithia Motors in a research report on Wednesday, February 14th. One research analyst has rated the stock with a sell rating, five have given a hold rating and five have given a buy rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $318.55.

Lithia Motors Company Profile

Lithia Motors, Inc operates as an automotive retailer worldwide. It operates in two segments, Vehicle Operations and Financing Operations. The company's Vehicle Operations segment sells new and used vehicles; provides parts, repair, and maintenance services; vehicle finance; and insurance products.