Hsbc Holdings PLC Decreases Stake in Lithia Motors, Inc. $LAD

Hsbc Holdings PLC cut its position in shares of Lithia Motors, Inc. (NYSE:LAD) by 14.9% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 18,515 shares of the company’s stock after selling 3,248 shares during the period. Hsbc Holdings PLC owned approximately 0.08% of Lithia Motors worth $6,174,000 as of its most recent SEC filing.

Several other institutional investors have also added to or reduced their stakes in LAD. Clearstead Advisors LLC increased its stake in Lithia Motors by 111.4% in the 4th quarter. Clearstead Advisors LLC now owns 93 shares of the company’s stock worth $31,000 after acquiring an additional 49 shares during the last quarter. V Square Quantitative Management LLC bought a new position in shares of Lithia Motors during the 4th quarter valued at approximately $34,000. Quarry LP grew its holdings in shares of Lithia Motors by 101.9% in the fourth quarter. Quarry LP now owns 109 shares of the company’s stock valued at $36,000 after purchasing an additional 55 shares in the last quarter. Los Angeles Capital Management LLC purchased a new position in shares of Lithia Motors in the fourth quarter valued at $38,000. Finally, eCIO Inc. bought a new stake in Lithia Motors in the fourth quarter worth $42,000.

Lithia Motors Price Performance

Lithia Motors stock opened at $303.95 on Thursday. The stock has a market cap of $6.93 billion, a price-to-earnings ratio of 10.67, a price-to-earnings-growth ratio of 0.69 and a beta of 1.26. The company has a debt-to-equity ratio of 1.41, a current ratio of 0.99 and a quick ratio of 0.24. Lithia Motors, Inc. has a 1 year low of $239.78 and a 1 year high of $360.55. The firm has a 50-day moving average of $291.18 and a two-hundred day moving average of $294.75.

Lithia Motors (NYSE:LAD) last issued its earnings results on Wednesday, April 29th. The company reported $7.34 EPS for the quarter, topping analysts’ consensus estimates of $7.06 by $0.28. Lithia Motors had a net margin of 1.88% and a return on equity of 12.49%. The business had revenue of $9.27 billion for the quarter, compared to analyst estimates of $9.22 billion. During the same period last year, the company posted $7.66 earnings per share. The company’s quarterly revenue was up 1.0% compared to the same quarter last year. On average, research analysts forecast that Lithia Motors, Inc. will post 34.37 earnings per share for the current year.

Lithia Motors Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, May 22nd. Investors of record on Friday, May 8th were paid a $0.57 dividend. This represents a $2.28 annualized dividend and a yield of 0.8%. This is an increase from Lithia Motors’s previous quarterly dividend of $0.55. The ex-dividend date of this dividend was Friday, May 8th. Lithia Motors’s payout ratio is currently 8.01%.

Lithia Motors declared that its Board of Directors has initiated a stock buyback program on Tuesday, May 26th that allows the company to buyback $500.00 million in outstanding shares. This buyback authorization allows the company to repurchase up to 7.9% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s board of directors believes its shares are undervalued.

Wall Street Analysts Forecast Growth

LAD has been the subject of several research reports. UBS Group started coverage on shares of Lithia Motors in a research report on Wednesday, May 27th. They set a “buy” rating and a $348.00 price objective for the company. Weiss Ratings downgraded shares of Lithia Motors from a “hold (c)” rating to a “hold (c-)” rating in a report on Monday, May 4th. Barclays dropped their price target on Lithia Motors from $380.00 to $370.00 and set an “overweight” rating for the company in a research report on Tuesday, April 7th. JPMorgan Chase & Co. boosted their price objective on Lithia Motors from $320.00 to $325.00 and gave the stock a “neutral” rating in a research note on Thursday, May 7th. Finally, Zacks Research upgraded Lithia Motors from a “strong sell” rating to a “hold” rating in a research report on Thursday, April 23rd. Seven investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat.com, Lithia Motors has an average rating of “Moderate Buy” and a consensus target price of $368.22.

Insider Buying and Selling at Lithia Motors

In other Lithia Motors news, Director Richard J. Bailey, Jr. sold 297 shares of Lithia Motors stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $280.57, for a total transaction of $83,329.29. Following the completion of the sale, the director directly owned 760 shares of the company’s stock, valued at $213,233.20. The trade was a 28.10% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Shauna Mcintyre sold 245 shares of the company’s stock in a transaction on Monday, May 11th. The stock was sold at an average price of $294.64, for a total value of $72,186.80. Following the completion of the sale, the director owned 1,846 shares of the company’s stock, valued at $543,905.44. This represents a 11.72% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 782 shares of company stock worth $229,572 over the last 90 days. 1.08% of the stock is currently owned by company insiders.

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.