Beck Bode LLC Takes Position in Lithia Motors, Inc. $LAD

Key Points

• Beck Bode LLC has acquired a new position in Lithia Motors, purchasing 4,022 shares valued at approximately $1.18 million during the first quarter.
• Several institutional investors, including CWM LLC, have increased their stakes in Lithia Motors, reflecting growing interest from major financial players.
• Lithia Motors announced a quarterly dividend of $0.55 per share, alongside a stock buyback plan permitting up to $750 million in repurchases, indicating the company's confidence in its valuation.

Beck Bode LLC acquired a new position in shares of Lithia Motors, Inc. (NYSE:LAD - Free Report) during the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund acquired 4,022 shares of the company's stock, valued at approximately $1,181,000.

A number of other hedge funds have also recently modified their holdings of LAD. NBC Securities Inc. bought a new position in shares of Lithia Motors during the first quarter valued at approximately $59,000. UMB Bank n.a. lifted its holdings in Lithia Motors by 63.7% during the first quarter. UMB Bank n.a. now owns 203 shares of the company's stock worth $60,000 after buying an additional 79 shares during the period. CWM LLC lifted its holdings in shares of Lithia Motors by 30.1% during the 1st quarter. CWM LLC now owns 212 shares of the company's stock valued at $62,000 after purchasing an additional 49 shares during the last quarter. GAMMA Investing LLC increased its position in shares of Lithia Motors by 50.9% in the 1st quarter. GAMMA Investing LLC now owns 252 shares of the company's stock valued at $74,000 after acquiring an additional 85 shares during the period. Finally, Caitong International Asset Management Co. Ltd acquired a new stake in Lithia Motors during the 1st quarter worth about $143,000.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on LAD. The Goldman Sachs Group started coverage on shares of Lithia Motors in a research note on Tuesday, June 3rd. They issued a "neutral" rating and a $340.00 price target on the stock. Bank of America lifted their price objective on shares of Lithia Motors from $430.00 to $500.00 and gave the stock a "buy" rating in a research report on Monday, June 16th. Citigroup lifted their price objective on shares of Lithia Motors from $378.00 to $383.00 and gave the company a "buy" rating in a research note on Tuesday, August 5th. Guggenheim lowered their target price on shares of Lithia Motors from $383.00 to $380.00 and set a "buy" rating on the stock in a research report on Monday, August 11th. Finally, Wells Fargo & Company lowered their target price on shares of Lithia Motors from $364.00 to $317.00 and set an "equal weight" rating on the stock in a research report on Wednesday, July 30th. Seven investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $379.00.

Lithia Motors Stock Performance

Lithia Motors stock traded down $2.13 during midday trading on Tuesday, reaching $334.56. 58,430 shares of the stock traded hands, compared to its average volume of 337,457. Lithia Motors, Inc. has a fifty-two week low of $255.32 and a fifty-two week high of $405.67. The firm has a market cap of $8.58 billion, a price-to-earnings ratio of 9.92, a PEG ratio of 0.52 and a beta of 1.31. The firm has a fifty day moving average price of $320.55 and a two-hundred day moving average price of $314.49. The company has a current ratio of 1.22, a quick ratio of 0.29 and a debt-to-equity ratio of 1.24.

Lithia Motors (NYSE:LAD - Get Free Report) last released its earnings results on Tuesday, July 29th. The company reported $10.24 earnings per share for the quarter, topping the consensus estimate of $9.78 by $0.46. Lithia Motors had a net margin of 2.39% and a return on equity of 13.21%. The business had revenue of $9.58 billion for the quarter, compared to the consensus estimate of $9.56 billion. On average, equities research analysts forecast that Lithia Motors, Inc. will post 34.45 earnings per share for the current year.

Lithia Motors Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, August 22nd. Shareholders of record on Friday, August 8th were paid a $0.55 dividend. The ex-dividend date of this dividend was Friday, August 8th. This represents a $2.20 dividend on an annualized basis and a yield of 0.7%. Lithia Motors's payout ratio is presently 6.52%.

Lithia Motors declared that its board has initiated a stock buyback plan on Tuesday, August 26th that permits the company to repurchase $750.00 million in shares. This repurchase authorization permits the company to buy up to 9% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company's board of directors believes its stock is undervalued.

Insider Activity

In other news, Director Shauna Mcintyre sold 256 shares of Lithia Motors stock in a transaction that occurred on Thursday, July 31st. The shares were sold at an average price of $293.05, for a total value of $75,020.80. Following the sale, the director directly owned 1,376 shares in the company, valued at $403,236.80. This trade represents a 15.69% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.87% of the stock is owned by company insiders.

Lithia Motors Company Profile

Lithia Motors, Inc operates as an automotive retailer worldwide. It operates in two segments, Vehicle Operations and Financing Operations. The company's Vehicle Operations segment sells new and used vehicles; provides parts, repair, and maintenance services; vehicle finance; and insurance products. Its Financing Operations segment provides financing to customers buying and leasing retail vehicles.