AQR Capital Management LLC Has $5.56 Million Stake in Lithia Motors, Inc. $LAD

Key Points

• AQR Capital Management LLC significantly increased its holdings in Lithia Motors, acquiring 18,615 additional shares for a total of 19,509 shares, representing a growth of 2,082.2% in the first quarter, making their investment worth approximately $5.56 million.
• Lithia Motors recently announced a dividend of $0.55 per share, which reflects a 0.7% annual yield, and initiated a stock buyback plan to repurchase up to $750 million of its shares.
• Despite the company's strong quarterly earnings report and positive analyst ratings, shares of Lithia Motors were down by 2.8%, with a current market price of $334.34 and a consensus target price set at $370.45.

AQR Capital Management LLC boosted its holdings in Lithia Motors, Inc. (NYSE:LAD - Free Report) by 2,082.2% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 19,509 shares of the company's stock after buying an additional 18,615 shares during the quarter. AQR Capital Management LLC owned approximately 0.07% of Lithia Motors worth $5,560,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently bought and sold shares of the stock. Wealth Enhancement Advisory Services LLC lifted its stake in shares of Lithia Motors by 118.1% in the first quarter. Wealth Enhancement Advisory Services LLC now owns 1,841 shares of the company's stock worth $541,000 after acquiring an additional 997 shares during the period. Cambridge Investment Research Advisors Inc. lifted its position in shares of Lithia Motors by 1.5% in the 1st quarter. Cambridge Investment Research Advisors Inc. now owns 2,421 shares of the company's stock worth $711,000 after purchasing an additional 35 shares during the period. Vident Advisory LLC increased its position in shares of Lithia Motors by 4.3% during the fourth quarter. Vident Advisory LLC now owns 780 shares of the company's stock worth $279,000 after buying an additional 32 shares during the period. GAMMA Investing LLC raised its stake in Lithia Motors by 50.9% during the first quarter. GAMMA Investing LLC now owns 252 shares of the company's stock worth $74,000 after buying an additional 85 shares during the last quarter. Finally, Invesco Ltd. grew its holdings in Lithia Motors by 4.4% during the 1st quarter. Invesco Ltd. now owns 119,466 shares of the company's stock worth $35,068,000 after acquiring an additional 5,005 shares during the period.

Lithia Motors Stock Down 1.1%

Shares of LAD stock traded down $3.52 during mid-day trading on Monday, hitting $330.54. 166,186 shares of the stock traded hands, compared to its average volume of 282,765. The stock's fifty day moving average is $319.63 and its two-hundred day moving average is $313.22. Lithia Motors, Inc. has a 52-week low of $262.10 and a 52-week high of $405.67. The company has a debt-to-equity ratio of 1.24, a current ratio of 1.22 and a quick ratio of 0.29. The stock has a market cap of $8.47 billion, a P/E ratio of 9.80, a P/E/G ratio of 0.68 and a beta of 1.31.

Lithia Motors (NYSE:LAD - Get Free Report) last released its quarterly earnings results on Tuesday, July 29th. The company reported $10.24 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $9.78 by $0.46. The firm had revenue of $9.58 billion for the quarter, compared to analysts' expectations of $9.56 billion. Lithia Motors had a net margin of 2.39% and a return on equity of 13.21%. Equities analysts predict that Lithia Motors, Inc. will post 34.45 EPS for the current year.

Lithia Motors Dividend Announcement

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

Lithia Motors declared that its Board of Directors has approved a share buyback plan on Tuesday, August 26th that authorizes the company to repurchase $750.00 million in shares. This repurchase authorization authorizes the company to purchase up to 9% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's leadership believes its stock is undervalued.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on LAD. Guggenheim dropped their price objective on Lithia Motors from $383.00 to $380.00 and set a "buy" rating on the stock in a research note on Monday, August 11th. Wells Fargo & Company dropped their price target 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. Bank of America dropped their price target on Lithia Motors from $500.00 to $385.00 and set a "buy" rating on the stock in a report on Wednesday, September 10th. 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. Finally, The Goldman Sachs Group initiated 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 for the company. Eight equities 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.com, Lithia Motors currently has an average rating of "Moderate Buy" and a consensus target price of $370.45.

Insider Activity at Lithia Motors

In other Lithia Motors news, Director Shauna Mcintyre sold 256 shares of the firm's stock in a transaction dated Thursday, July 31st. The shares were sold at an average price of $293.05, for a total transaction of $75,020.80. Following the sale, the director directly 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 document filed with the Securities & Exchange Commission, which is accessible through this link. 0.87% of the stock is owned by corporate 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.