Lithia Motors (NYSE:LAD) Stock Crosses Below 200 Day Moving Average – Here’s Why

Lithia Motors, Inc. (NYSE:LAD) shares crossed below its 200-day moving average during trading on Tuesday. The stock has a 200-day moving average of $307.07 and traded as low as $303.95. Lithia Motors shares last traded at $305.6650, with a volume of 136,523 shares changing hands.

Wall Street Analysts Forecast Growth

LAD has been the subject of several research reports. UBS Group lowered their price objective on shares of Lithia Motors from $335.00 to $305.00 and set a “neutral” rating for the company in a research report on Thursday, October 22nd. JPMorgan Chase & Co. lowered their price target on Lithia Motors from $320.00 to $315.00 and set a “neutral” rating for the company in a report on Thursday, October 22nd. Wells Fargo & Company increased their price objective on Lithia Motors from $306.00 to $395.00 and gave the stock an “equal weight” rating in a research note on Thursday, July 30th. Weiss Ratings downgraded Lithia Motors from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, October 14th. Finally, Benchmark lifted their target price on Lithia Motors from $400.00 to $475.00 and gave the company a “buy” rating in a research report on Thursday, July 30th. Six investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $393.80.

Lithia Motors Stock Performance

The company has a debt-to-equity ratio of 1.44, a quick ratio of 0.21 and a current ratio of 1.00. The stock has a market cap of $6.42 billion, a PE ratio of 8.55, a price-to-earnings-growth ratio of 0.70 and a beta of 1.30. The firm has a fifty day moving average price of $312.70 and a 200 day moving average price of $307.03.

Lithia Motors (NYSE:LAD) last issued its quarterly earnings results on Wednesday, October 21st. The company reported $10.34 earnings per share for the quarter, topping analysts’ consensus estimates of $9.70 by $0.64. Lithia Motors had a return on equity of 12.05% and a net margin of 2.06%. The business had revenue of $9.95 billion for the quarter, compared to analyst estimates of $9.75 billion. During the same quarter in the previous year, the firm earned $9.50 earnings per share. The company’s revenue was up 2.8% on a year-over-year basis. Research analysts forecast that Lithia Motors, Inc. will post 35.83 earnings per share for the current fiscal year.

Lithia Motors Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, November 20th. Stockholders of record on Friday, November 6th will be paid a $0.75 dividend. The ex-dividend date is Friday, November 6th. This is an increase from Lithia Motors’s previous quarterly dividend of $0.70. This represents a $3.00 dividend on an annualized basis and a dividend yield of 1.0%. Lithia Motors’s dividend payout ratio (DPR) is currently 8.63%.

Insider Activity

In related news, Director Stacy Congdon sold 75 shares of the business’s stock in a transaction on Friday, September 11th. The shares were sold at an average price of $370.73, for a total transaction of $27,804.75. Following the completion of the transaction, the director directly owned 2,300 shares in the company, valued at $852,679. The trade was a 3.16% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.08% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Lithia Motors

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. GAMMA Investing LLC boosted its stake 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 during the last quarter. Crumly & Associates Inc. raised its position in Lithia Motors by 3.6% during the second quarter. Crumly & Associates Inc. now owns 1,246 shares of the company’s stock valued at $362,000 after acquiring an additional 43 shares in the last quarter. Ashton Thomas Private Wealth LLC raised its position in Lithia Motors by 1.3% during the third quarter. Ashton Thomas Private Wealth LLC now owns 3,373 shares of the company’s stock valued at $984,000 after acquiring an additional 43 shares in the last quarter. Abel Hall LLC lifted its holdings in Lithia Motors by 6.1% in the third quarter. Abel Hall LLC now owns 777 shares of the company’s stock valued at $227,000 after acquiring an additional 45 shares during the period. Finally, Bessemer Group Inc. lifted its holdings in Lithia Motors by 28.9% in the third quarter. Bessemer Group Inc. now owns 223 shares of the company’s stock valued at $66,000 after acquiring an additional 50 shares during the period.

About Lithia Motors

Lithia Motors, Inc. is an automotive retailer that sells new and pre-owned vehicles through a network of franchised dealerships. Its dealerships represent a range of vehicle manufacturers and also offer related products and services, including parts, maintenance and repairs, and vehicle financing and insurance options. The company traces its roots to a single dealership established in Ashland, Oregon, in 1946. It has since expanded its retail operations across the United States, Canada and the United Kingdom.