Lithia Motors, Inc. (NYSE:LAD) Given Average Rating of “Moderate Buy” by Analysts

Lithia Motors, Inc. (NYSE:LAD) has been assigned an average recommendation of “Moderate Buy” from the twelve ratings firms that are currently covering the firm, MarketBeat.com reports. Five equities research analysts have rated the stock with a hold rating and seven have given a buy rating to the company. The average 12-month price objective among brokers that have issued a report on the stock in the last year is $368.1111.

Several research firms have commented on LAD. Weiss Ratings lowered shares of Lithia Motors from a “hold (c)” rating to a “hold (c-)” rating in a report on Monday, May 4th. Barclays cut their price target on shares of Lithia Motors from $380.00 to $370.00 and set an “overweight” rating for the company in a report on Tuesday, April 7th. Wells Fargo & Company increased their price target on shares of Lithia Motors from $293.00 to $305.00 and gave the stock an “equal weight” rating in a research report on Thursday, April 30th. JPMorgan Chase & Co. lifted their price objective on shares of Lithia Motors from $320.00 to $325.00 and gave the company a “neutral” rating in a research note on Thursday, May 7th. Finally, Bank of America lowered their price objective on shares of Lithia Motors from $335.00 to $320.00 in a research report on Monday, April 13th.

Lithia Motors Stock Performance

Shares of NYSE:LAD opened at $307.35 on Friday. Lithia Motors has a 12-month low of $239.78 and a 12-month high of $360.55. The company’s 50 day moving average price is $289.26 and its two-hundred day moving average price is $295.82. The firm has a market cap of $7.01 billion, a PE ratio of 10.79, a PEG ratio of 0.67 and a beta of 1.26. The company has a quick ratio of 0.24, a current ratio of 0.99 and a debt-to-equity ratio of 1.41.

Lithia Motors (NYSE:LAD) last issued its quarterly 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. The company had revenue of $9.27 billion for the quarter, compared to analysts’ expectations of $9.22 billion. Lithia Motors had a return on equity of 12.49% and a net margin of 1.88%.Lithia Motors’s revenue was up 1.0% on a year-over-year basis. During the same quarter last year, the business earned $7.66 earnings per share. Equities research analysts predict that Lithia Motors will post 34.37 earnings per share for the current year.

Lithia Motors declared that its board has approved a share repurchase program on Tuesday, May 26th that allows the company to buyback $500.00 million in shares. This buyback authorization allows the company to buy up to 7.9% of its shares through open market purchases. Shares buyback programs are generally a sign that the company’s board believes its shares are undervalued.

Lithia Motors Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, May 22nd. Stockholders of record on Friday, May 8th were issued a dividend of $0.57 per share. 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. This represents a $2.28 dividend on an annualized basis and a dividend yield of 0.7%. Lithia Motors’s payout ratio is presently 8.01%.

Insider Buying and Selling at Lithia Motors

In other news, Director Shauna Mcintyre sold 165 shares of the stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $305.64, for a total value of $50,430.60. Following the completion of the transaction, the director owned 1,681 shares of the company’s stock, valued at approximately $513,780.84. This represents a 8.94% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Richard J. Bailey, Jr. sold 297 shares of the firm’s stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $280.57, for a total transaction of $83,329.29. Following the completion of the sale, the director owned 760 shares in the company, valued at approximately $213,233.20. The trade was a 28.10% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 782 shares of company stock valued at $229,572. 1.08% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Lithia Motors

Several institutional investors and hedge funds have recently added to or reduced their stakes in LAD. Clearstead Advisors LLC boosted its position in Lithia Motors by 111.4% in the fourth quarter. Clearstead Advisors LLC now owns 93 shares of the company’s stock valued at $31,000 after buying an additional 49 shares in the last quarter. V Square Quantitative Management LLC acquired a new position in shares of Lithia Motors during the fourth quarter worth $34,000. Quarry LP lifted its stake in shares of Lithia Motors by 101.9% in the 4th quarter. Quarry LP now owns 109 shares of the company’s stock valued at $36,000 after acquiring an additional 55 shares during the last quarter. Versant Capital Management Inc lifted its stake in shares of Lithia Motors by 1,311.1% in the 2nd quarter. Versant Capital Management Inc now owns 127 shares of the company’s stock valued at $37,000 after acquiring an additional 118 shares during the last quarter. Finally, Los Angeles Capital Management LLC acquired a new stake in shares of Lithia Motors during the 4th quarter valued at $38,000.

About Lithia Motors

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.