Alyeska Investment Group L.P. Cuts Stake in Lithia Motors, Inc. $LAD

Key Points

• Alyeska Investment Group L.P. has reduced its holdings in Lithia Motors, Inc. by 18.2%, now owning approximately 0.44% of the company, valued at about $33.3 million.
• Advent International L.P. has increased its stake in Lithia Motors by 32.1%, now holding 286,786 shares worth around $84.2 million.
• Analysts have mixed ratings on Lithia Motors, with a consensus price target of $379.00 and a current average rating of "Moderate Buy".

Alyeska Investment Group L.P. lowered its stake in shares of Lithia Motors, Inc. (NYSE:LAD - Free Report) by 18.2% in the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 113,490 shares of the company's stock after selling 25,198 shares during the period. Alyeska Investment Group L.P. owned about 0.44% of Lithia Motors worth $33,314,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors and hedge funds have also modified their holdings of the stock. Advent International L.P. increased its stake in shares of Lithia Motors by 32.1% during the first quarter. Advent International L.P. now owns 286,786 shares of the company's stock worth $84,183,000 after purchasing an additional 69,635 shares in the last quarter. PDT Partners LLC purchased a new stake in Lithia Motors during the 1st quarter valued at about $1,413,000. Cubist Systematic Strategies LLC purchased a new stake in Lithia Motors during the 1st quarter valued at about $18,268,000. Caption Management LLC purchased a new stake in Lithia Motors during the 1st quarter valued at about $499,000. Finally, Quarry LP purchased a new stake in Lithia Motors during the 1st quarter valued at about $136,000.

Wall Street Analyst Weigh In

Several analysts recently issued reports on LAD shares. The Goldman Sachs Group started coverage on shares of Lithia Motors in a research note on Tuesday, June 3rd. They set a "neutral" rating and a $340.00 price objective for the company. Wells Fargo & Company dropped their price objective on shares of Lithia Motors from $364.00 to $317.00 and set an "equal weight" rating for the company in a research note on Wednesday, July 30th. Bank of America upped their price objective on shares of Lithia Motors from $430.00 to $500.00 and gave the company a "buy" rating in a research note on Monday, June 16th. JPMorgan Chase & Co. dropped their price objective on shares of Lithia Motors from $335.00 to $315.00 and set an "overweight" rating for the company in a research note on Tuesday, August 5th. Finally, Guggenheim dropped their price objective on shares of Lithia Motors from $383.00 to $380.00 and set a "buy" rating for the company in a research note on Monday, August 11th. Seven research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, Lithia Motors presently has an average rating of "Moderate Buy" and a consensus price target of $379.00.

Lithia Motors Stock Performance

Shares of LAD stock opened at $331.61 on Thursday. The firm's 50 day moving average price is $320.41 and its 200-day moving average price is $314.74. The company has a debt-to-equity ratio of 1.24, a quick ratio of 0.29 and a current ratio of 1.22. Lithia Motors, Inc. has a one year low of $255.32 and a one year high of $405.67. The firm has a market cap of $8.50 billion, a P/E ratio of 9.83, a P/E/G ratio of 0.52 and a beta of 1.31.

Lithia Motors (NYSE:LAD - Get Free Report) last issued its quarterly earnings data on Tuesday, July 29th. The company reported $10.24 EPS 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 firm had revenue of $9.58 billion for the quarter, compared to analyst estimates of $9.56 billion. As a group, equities research analysts predict that Lithia Motors, Inc. will post 34.45 EPS for the current year.

Lithia Motors Dividend Announcement

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

Lithia Motors declared that its board has approved a stock buyback program on Tuesday, August 26th that allows the company to repurchase $750.00 million in shares. This repurchase authorization allows the company to reacquire up to 9% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company's leadership believes its stock is undervalued.

Insider Activity at Lithia Motors

In other Lithia Motors news, Director Shauna Mcintyre sold 256 shares of the business's stock in a transaction 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 completion of the transaction, the director owned 1,376 shares in the company, valued at $403,236.80. The trade was a 15.69% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. 0.87% of the stock is currently owned by company insiders.

Lithia Motors 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.

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