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

A number of other hedge funds and other institutional investors also recently modified their holdings of the company. Abrams Capital Management L.P. lifted its position in 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 purchasing an additional 53,490 shares during the period. Dimensional Fund Advisors LP lifted its position in Lithia Motors by 6.1% during the first quarter. Dimensional Fund Advisors LP now owns 1,267,519 shares of the company's stock worth $372,053,000 after purchasing an additional 72,980 shares during the period. Steadfast Capital Management LP lifted its position in 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 position in 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 purchasing an additional 30,420 shares during the period. Finally, Advent International L.P. lifted its position in 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 during the period.

Insider Activity

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

Wall Street Analyst Weigh In

A number of research firms recently issued reports on LAD. The Goldman Sachs Group started coverage on shares of Lithia Motors in a research report on Tuesday, June 3rd. They set a "neutral" rating and a $340.00 price objective for the company. Wells Fargo & Company decreased 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 note on Wednesday, July 30th. Guggenheim decreased 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 note on Monday, August 11th. Citigroup boosted their target price on shares of Lithia Motors from $378.00 to $383.00 and gave the stock a "buy" rating in a research note on Tuesday, August 5th. Finally, Jefferies Financial Group assumed coverage on shares of Lithia Motors in a research note on Thursday, September 4th. They set a "buy" rating and a $400.00 target price on the stock. Eight analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $370.45.

Lithia Motors Trading Up 1.4%

Shares of Lithia Motors stock traded up $4.67 on Thursday, reaching $337.76. 199,228 shares of the company's stock were exchanged, compared to its average volume of 273,677. The company has a market capitalization of $8.66 billion, a P/E ratio of 10.01, a price-to-earnings-growth ratio of 0.67 and a beta of 1.31. Lithia Motors, Inc. has a 52 week low of $262.10 and a 52 week high of $405.67. The firm's 50-day moving average is $318.65 and its two-hundred day moving average is $313.58. 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 (NYSE:LAD - Get Free Report) last posted its quarterly earnings results on Tuesday, July 29th. The company reported $10.24 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $9.78 by $0.46. Lithia Motors had a return on equity of 13.21% and a net margin of 2.39%.The firm had revenue of $9.58 billion for the quarter, compared to analysts' expectations of $9.56 billion. Sell-side analysts predict that Lithia Motors, Inc. will post 34.45 EPS for the current fiscal year.

Lithia Motors announced that its Board of Directors has initiated a stock repurchase plan on Tuesday, August 26th that allows the company to buyback $750.00 million in shares. This buyback authorization allows the company to purchase up to 9% of its shares through open market purchases. Shares buyback plans are often an indication that the company's board of directors believes its stock is undervalued.

Lithia Motors Dividend Announcement

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

About Lithia Motors

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.