Advent International L.P. Has $84.18 Million Stake in Lithia Motors, Inc. $LAD

Key Points

• Advent International L.P. increased its stake in Lithia Motors by 32.1%, acquiring an additional 69,635 shares, bringing its total holdings to 286,786 shares, worth approximately $84.2 million.
• Lithia Motors reported a quarterly earnings per share of $10.24, exceeding forecasts of $9.78, with revenue also slightly above expectations at $9.58 billion.
• The company has announced a $750 million share repurchase plan approved by its Board, indicative of confidence in the stock's value, and recently declared a quarterly dividend of $0.55 per share.

Advent International L.P. boosted its position in shares of Lithia Motors, Inc. (NYSE:LAD - Free Report) by 32.1% in the first quarter, according to the company in its most recent disclosure with the SEC. The firm owned 286,786 shares of the company's stock after purchasing an additional 69,635 shares during the quarter. Lithia Motors accounts for about 2.7% of Advent International L.P.'s investment portfolio, making the stock its 10th biggest holding. Advent International L.P. owned about 1.10% of Lithia Motors worth $84,183,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also modified their holdings of the company. Abrams Capital Management L.P. boosted its position in shares of Lithia Motors by 2.2% during the first quarter. Abrams Capital Management L.P. now owns 2,444,678 shares of the company's stock worth $717,611,000 after buying an additional 53,490 shares during the period. Dimensional Fund Advisors LP grew its stake in Lithia Motors by 6.1% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,267,519 shares of the company's stock valued at $372,053,000 after buying an additional 72,980 shares during the last quarter. Steadfast Capital Management LP increased its stake in shares of Lithia Motors by 137.8% during the fourth quarter. Steadfast Capital Management LP now owns 460,298 shares of the company's stock worth $164,524,000 after purchasing an additional 266,715 shares during the period. Hotchkis & Wiley Capital Management LLC lifted its holdings in shares of Lithia Motors by 8.8% during the first quarter. Hotchkis & Wiley Capital Management LLC now owns 376,467 shares of the company's stock worth $110,508,000 after buying an additional 30,420 shares in the last quarter. Finally, Madison Asset Management LLC raised its stake in Lithia Motors by 9.9% in the 1st quarter. Madison Asset Management LLC now owns 280,456 shares of the company's stock worth $82,325,000 after purchasing an additional 25,331 shares in the last quarter.

Insider Buying and Selling

In other Lithia Motors 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 transaction of $75,020.80. Following the transaction, the director owned 1,376 shares of the company's stock, valued at $403,236.80. This trade represents a 15.69% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 0.87% of the company's stock.

Lithia Motors Price Performance

LAD traded up $1.01 on Friday, reaching $341.10. The stock had a trading volume of 187,013 shares, compared to its average volume of 288,412. The company has a market capitalization of $8.74 billion, a price-to-earnings ratio of 10.11, a price-to-earnings-growth ratio of 0.53 and a beta of 1.31. The firm has a 50-day moving average of $320.73 and a 200-day moving average of $313.87. 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, Inc. has a fifty-two week low of $255.32 and a fifty-two week high of $405.67.

Lithia Motors (NYSE:LAD - Get Free Report) last posted its quarterly earnings data on Tuesday, July 29th. The company reported $10.24 EPS for the quarter, beating analysts' consensus estimates of $9.78 by $0.46. The company had revenue of $9.58 billion for the quarter, compared to analyst estimates of $9.56 billion. Lithia Motors had a net margin of 2.39% and a return on equity of 13.21%. As a group, sell-side analysts anticipate that Lithia Motors, Inc. will post 34.45 EPS for the current year.

Lithia Motors announced that its board has approved a share repurchase program on Tuesday, August 26th that authorizes the company to repurchase $750.00 million in outstanding shares. This repurchase authorization authorizes the company to buy up to 9% of its shares through open market purchases. Shares repurchase programs are often a sign that the company's management believes its stock is undervalued.

Lithia Motors Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, August 22nd. Investors of record on Friday, August 8th were issued a dividend of $0.55 per share. The ex-dividend date was Friday, August 8th. This represents a $2.20 annualized dividend and a yield of 0.6%. Lithia Motors's payout ratio is 6.52%.

Analyst Ratings Changes

LAD has been the topic of a number of recent research reports. Bank of America raised their price objective on Lithia Motors from $430.00 to $500.00 and gave the stock a "buy" rating in a research note on Monday, June 16th. Jefferies Financial Group started coverage on Lithia Motors in a research note on Thursday. They issued a "buy" rating and a $400.00 price target for the company. Wells Fargo & Company reduced their price objective on shares of Lithia Motors from $364.00 to $317.00 and set an "equal weight" rating on the stock in a research note on Wednesday, July 30th. Citigroup raised their target price on shares of Lithia Motors from $378.00 to $383.00 and gave the company a "buy" rating in a report on Tuesday, August 5th. Finally, The Goldman Sachs Group assumed coverage on shares of Lithia Motors in a report on Tuesday, June 3rd. They set a "neutral" rating and a $340.00 price target for the company. Eight equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $380.91.

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.