2,397,611 Shares in Lithia Motors, Inc. $LAD Bought by BlackRock Inc.

Key Points

• BlackRock acquired 2.4 million Lithia Motors shares worth approximately $696.5 million, giving it a 10.51% stake in the automotive retailer.
• Lithia Motors reported quarterly EPS of $10.03, exceeding estimates of $8.73, while revenue rose 2.2% year over year to $9.79 billion.
• The company increased its quarterly dividend to $0.70 per share and authorized a $500 million share-repurchase program; analysts maintain a “Moderate Buy” consensus with an average price target of $436.33.

BlackRock Inc. purchased a new stake in Lithia Motors, Inc. (NYSE:LAD - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor purchased 2,397,611 shares of the company's stock, valued at approximately $696,482,000. BlackRock Inc. owned about 10.51% of Lithia Motors as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in LAD. Parallel Advisors LLC lifted its holdings in shares of Lithia Motors by 26.8% in the 4th quarter. Parallel Advisors LLC now owns 156 shares of the company's stock valued at $52,000 after buying an additional 33 shares during the period. Fifth Third Wealth Advisors LLC lifted its holdings in Lithia Motors by 3.8% in the first quarter. Fifth Third Wealth Advisors LLC now owns 984 shares of the company's stock valued at $246,000 after acquiring an additional 36 shares during the period. Vident Advisory LLC boosted its position in Lithia Motors by 4.6% in the 2nd quarter. Vident Advisory LLC now owns 842 shares of the company's stock worth $285,000 after purchasing an additional 37 shares in the last quarter. Occudo Quantitative Strategies LP boosted its position in Lithia Motors by 0.8% in the 4th quarter. Occudo Quantitative Strategies LP now owns 4,616 shares of the company's stock worth $1,534,000 after purchasing an additional 37 shares in the last quarter. Finally, GAMMA Investing LLC grew its stake in shares of Lithia Motors by 32.1% during the 2nd quarter. GAMMA Investing LLC now owns 173 shares of the company's stock worth $50,000 after purchasing an additional 42 shares during the period.

Lithia Motors Stock Performance

LAD opened at $371.96 on Monday. The firm has a market capitalization of $8.18 billion, a PE ratio of 12.34, a PEG ratio of 0.78 and a beta of 1.22. Lithia Motors, Inc. has a twelve month low of $239.78 and a twelve month high of $439.49. The firm's 50-day moving average price is $337.24 and its 200 day moving average price is $300.40. The company has a current ratio of 1.00, a quick ratio of 0.21 and a debt-to-equity ratio of 1.46.

Lithia Motors (NYSE:LAD - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The company reported $10.03 earnings per share (EPS) for the quarter, beating the consensus estimate of $8.73 by $1.30. The company had revenue of $9.79 billion during the quarter, compared to analysts' expectations of $9.64 billion. Lithia Motors had a net margin of 1.88% and a return on equity of 12.16%. Lithia Motors's revenue was up 2.2% compared to the same quarter last year. During the same quarter in the prior year, the company earned $10.24 EPS. As a group, sell-side analysts expect that Lithia Motors, Inc. will post 36 EPS 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 given a $0.70 dividend. This represents a $2.80 dividend on an annualized basis and a dividend yield of 0.8%. This is a boost from Lithia Motors's previous quarterly dividend of $0.57. The ex-dividend date was Friday, August 7th. Lithia Motors's dividend payout ratio (DPR) is currently 9.29%.

Lithia Motors declared that its Board of Directors has authorized a stock repurchase plan on Tuesday, May 26th that permits the company to buyback $500.00 million in outstanding shares. This buyback authorization permits the company to buy up to 7.9% of its shares through open market purchases. Shares buyback plans are generally an indication that the company's management believes its stock is undervalued.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on LAD shares. Citigroup upped their price objective 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. Benchmark raised their price objective on Lithia Motors from $400.00 to $475.00 and gave the company a "buy" rating in a report on Thursday, July 30th. Jefferies Financial Group reaffirmed a "buy" rating and set a $490.00 target price on shares of Lithia Motors in a research note on Thursday, July 30th. Barclays increased their target price on Lithia Motors from $360.00 to $415.00 and gave the company an "overweight" rating in a research report on Wednesday, August 19th. Finally, JPMorgan Chase & Co. upped their price objective on shares of Lithia Motors from $325.00 to $340.00 and gave the stock a "neutral" rating in a research report on Tuesday, August 4th. Six research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $436.33.

Insider Activity at Lithia Motors

In related news, Director Shauna Mcintyre sold 165 shares of the stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $305.64, for a total value of $50,430.60. Following the completion of the sale, the director owned 1,681 shares of the company's stock, valued at approximately $513,780.84. This trade represents a 8.94% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Richard J. Bailey, Jr. sold 297 shares of Lithia Motors stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $280.57, for a total value of $83,329.29. Following the transaction, the director owned 760 shares in the company, valued at approximately $213,233.20. The trade was a 28.10% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 537 shares of company stock valued at $157,385. Insiders own 1.08% of the company's stock.

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.

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