Lithia Motors, Inc. $LAD Shares Sold by Arete Wealth Advisors LLC

Key Points

• Arete Wealth Advisors LLC has significantly reduced its stake in Lithia Motors by 83.3%, selling 7,063 shares and now holding only 1,416 shares valued at approximately $416,000.
• Lithia Motors recently reported an earnings per share (EPS) of $10.24, surpassing analyst expectations, alongside a revenue of $9.58 billion for the quarter.
• The company has authorized a $750 million stock repurchase plan to buy back up to 9% of its stock, indicating a belief by the board that its shares are undervalued.

Arete Wealth Advisors LLC lowered its stake in shares of Lithia Motors, Inc. (NYSE:LAD - Free Report) by 83.3% during the first quarter, according to its most recent Form 13F filing with the SEC. The fund owned 1,416 shares of the company's stock after selling 7,063 shares during the period. Arete Wealth Advisors LLC's holdings in Lithia Motors were worth $416,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in LAD. NBC Securities Inc. acquired a new position in Lithia Motors during the first quarter worth $59,000. UMB Bank n.a. increased its holdings in shares of Lithia Motors by 63.7% during the 1st 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 last quarter. CWM LLC increased 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 worth $62,000 after buying an additional 49 shares during the last quarter. GAMMA Investing LLC increased its holdings in shares of Lithia Motors by 50.9% during the 1st 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, Quarry LP acquired a new stake in shares of Lithia Motors during the 1st quarter worth approximately $136,000.

Insiders Place Their Bets

In related news, Director Shauna Mcintyre sold 256 shares of the company's stock in a transaction on Thursday, July 31st. The stock was 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 represents a 15.69% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. 0.87% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on LAD shares. Bank of America cut their price target on shares of Lithia Motors from $500.00 to $385.00 and set a "buy" rating for the company in a report on Wednesday, September 10th. Citigroup upped their target price on shares of Lithia Motors from $378.00 to $383.00 and gave the company a "buy" rating in a research report on Tuesday, August 5th. Jefferies Financial Group initiated coverage on shares of Lithia Motors in a research report on Thursday, September 4th. They issued a "buy" rating and a $400.00 target price on the stock. 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 report on Monday, August 11th. Finally, 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 report on Wednesday, July 30th. Eight analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $370.45.

Lithia Motors Stock Performance

LAD stock traded down $1.74 during trading on Tuesday, hitting $328.56. The company had a trading volume of 23,104 shares, compared to its average volume of 333,032. The firm has a market cap of $8.42 billion, a PE ratio of 9.74, a price-to-earnings-growth ratio of 0.68 and a beta of 1.31. Lithia Motors, Inc. has a 1-year low of $262.10 and a 1-year high of $405.67. The firm has a 50-day moving average price of $319.63 and a 200-day moving average price of $313.22. The company has a quick ratio of 0.29, a current ratio of 1.22 and a debt-to-equity ratio of 1.24.

Lithia Motors (NYSE:LAD - Get Free Report) last issued its quarterly earnings results on Tuesday, July 29th. The company reported $10.24 earnings per share (EPS) for the quarter, beating the consensus estimate 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. On average, analysts expect that Lithia Motors, Inc. will post 34.45 earnings per share for the current year.

Lithia Motors declared that its Board of Directors has authorized a share buyback program on Tuesday, August 26th that allows the company to buyback $750.00 million in outstanding shares. This buyback authorization allows the company to buy up to 9% of its shares through open market purchases. Shares buyback programs are typically a sign that the company's board of directors believes its stock is undervalued.

Lithia Motors Dividend Announcement

The firm also recently disclosed 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. This represents a $2.20 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend was Friday, August 8th. Lithia Motors's dividend payout ratio 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.