Lithia Motors (NYSE:LAD) Shares Down 4.4% – Here’s What Happened

Shares of Lithia Motors, Inc. (NYSE:LAD) dropped 4.4% during trading on Thursday . The stock traded as low as $339.22 and last traded at $324.22. 38,415 shares were traded 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.

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on the stock. Jefferies Financial Group reissued a “buy” rating and issued a $490.00 price target on shares of Lithia Motors 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 report on Saturday, August 1st. Bank of America lifted their target price on shares of Lithia Motors from $350.00 to $417.00 and gave the company a “buy” rating in a research report on Thursday, July 9th. JPMorgan Chase & Co. upped 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. Finally, Citigroup increased their price target on shares of Lithia Motors from $365.00 to $455.00 and gave the stock a “buy” rating in a research report on Monday, August 3rd. Six equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $436.33.

Lithia Motors Stock Performance

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 stock has a market capitalization of $7.14 billion, a price-to-earnings ratio of 10.77, a price-to-earnings-growth ratio of 0.73 and a beta of 1.23. The stock’s 50-day simple moving average is $361.68 and its 200 day simple moving average is $307.88.

Lithia Motors (NYSE:LAD) last announced its 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. 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 last year, the company posted $10.24 earnings per share. The firm’s quarterly revenue was up 2.2% compared to the same quarter last year. Analysts expect that Lithia Motors, Inc. will post 36 earnings per share for the current fiscal year.

Lithia Motors Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, August 21st. Stockholders of record on Friday, August 7th were paid a dividend of $0.70 per share. This represents a $2.80 annualized dividend and a dividend yield of 0.9%. This is an increase from Lithia Motors’s previous quarterly dividend of $0.57. The ex-dividend date of this dividend was Friday, August 7th. Lithia Motors’s payout ratio is currently 9.29%.

Lithia Motors announced that its board has approved a stock buyback plan on Tuesday, May 26th that authorizes the company to buyback $500.00 million in outstanding shares. This buyback authorization authorizes the company to repurchase up to 7.9% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s board of directors believes its shares are undervalued.

Insider Buying and Selling at Lithia Motors

In related news, Director Stacy Congdon sold 75 shares of the business’s stock in a transaction that occurred 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 completion of the transaction, the director owned 2,300 shares in the company, valued at $852,679. The trade was 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 corporate insiders.

Institutional Investors Weigh In On Lithia Motors

Institutional investors and hedge funds have recently made changes to their positions in the company. Sequoia Financial Advisors LLC acquired a new position in shares of Lithia Motors during the second quarter valued at $241,000. Tidal Investments LLC raised its holdings in 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 during the last quarter. WINTON GROUP Ltd bought a new stake in Lithia Motors during the 2nd quarter worth about $4,811,000. Engineers Gate Manager LP acquired a new position in Lithia Motors during the 2nd quarter valued at about $770,000. Finally, Cidel Asset Management Inc. bought a new position in shares of Lithia Motors in the 2nd quarter valued at about $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.