Arete Wealth Advisors LLC Sells 7,063 Shares of Lithia Motors, Inc. $LAD

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 decreased its stake in Lithia Motors, Inc. (NYSE:LAD - Free Report) by 83.3% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 1,416 shares of the company's stock after selling 7,063 shares during the quarter. Arete Wealth Advisors LLC's holdings in Lithia Motors were worth $416,000 as of its most recent filing with the Securities and Exchange Commission.

Several other institutional investors also recently modified their holdings of LAD. NBC Securities Inc. bought a new stake in shares of Lithia Motors in the 1st quarter valued at about $59,000. UMB Bank n.a. boosted its stake in 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 acquiring an additional 79 shares during the last quarter. CWM LLC increased its stake in Lithia Motors by 30.1% in the first quarter. CWM LLC now owns 212 shares of the company's stock valued at $62,000 after purchasing an additional 49 shares in the last quarter. GAMMA Investing LLC increased its stake in Lithia Motors by 50.9% in the first quarter. GAMMA Investing LLC now owns 252 shares of the company's stock valued at $74,000 after purchasing an additional 85 shares in the last quarter. Finally, Quarry LP acquired a new stake in Lithia Motors in the first quarter worth $136,000.

Lithia Motors Stock Down 2.2%

NYSE:LAD opened at $337.15 on Thursday. The stock has a 50-day simple moving average of $320.51 and a 200 day simple moving average of $313.85. Lithia Motors, Inc. has a 52-week low of $255.32 and a 52-week high of $405.67. The company has a market cap of $8.64 billion, a PE ratio of 10.00, a PEG ratio of 0.53 and a beta of 1.31. 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 released its earnings results on Tuesday, July 29th. The company reported $10.24 EPS for the quarter, beating the consensus estimate 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 return on equity of 13.21% and a net margin of 2.39%. On average, sell-side analysts expect that Lithia Motors, Inc. will post 34.45 EPS for the current fiscal year.

Lithia Motors Announces Dividend

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

Lithia Motors declared that its Board of Directors has authorized a stock buyback plan on Tuesday, August 26th that authorizes the company to repurchase $750.00 million in shares. This repurchase authorization authorizes the company to buy up to 9% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's board of directors believes its shares are undervalued.

Analyst Ratings Changes

A number of analysts recently commented on LAD shares. Wells Fargo & Company lowered 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 report on Wednesday, July 30th. Citigroup increased their price target on Lithia Motors from $378.00 to $383.00 and gave the stock a "buy" rating in a report on Tuesday, August 5th. JPMorgan Chase & Co. dropped their price target on Lithia Motors from $335.00 to $315.00 and set an "overweight" rating on the stock in a research report on Tuesday, August 5th. The Goldman Sachs Group began coverage on Lithia Motors in a research report on Tuesday, June 3rd. They issued a "neutral" rating and a $340.00 price objective for the company. Finally, Bank of America lowered their target price on Lithia Motors from $500.00 to $385.00 and set a "buy" rating for the company in a research note on Wednesday. Eight analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, Lithia Motors presently has an average rating of "Moderate Buy" and a consensus target price of $370.45.

Insider Transactions at Lithia Motors

In other Lithia Motors news, Director Shauna Mcintyre sold 256 shares of the business'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. The trade was a 15.69% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Insiders own 0.87% of the company's stock.

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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