1,293 Shares in Lithia Motors, Inc. $LAD Acquired by Aristeia Capital L.L.C.

Key Points

• Aristeia Capital L.L.C. has made a new investment in Lithia Motors, Inc., purchasing 1,293 shares valued at approximately $380,000 in the first quarter.
• Lithia Motors recently beat analysts' earnings estimates, reporting an EPS of $10.24 for the quarter, exceeding the consensus estimate by $0.46.
• The company has announced a buyback plan that allows for the repurchase of up to $750 million in shares, reflecting confidence in its stock’s value.

Aristeia Capital L.L.C. purchased a new position in shares of Lithia Motors, Inc. (NYSE:LAD - Free Report) during the first quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor purchased 1,293 shares of the company's stock, valued at approximately $380,000.

Several other large investors have also recently added to or reduced their stakes in the business. Abrams Capital Management L.P. increased its position in Lithia Motors by 2.2% in the 1st quarter. Abrams Capital Management L.P. now owns 2,444,678 shares of the company's stock valued at $717,611,000 after acquiring an additional 53,490 shares during the period. Dimensional Fund Advisors LP increased its position in Lithia Motors by 6.1% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,267,519 shares of the company's stock valued at $372,053,000 after acquiring an additional 72,980 shares during the period. Steadfast Capital Management LP increased its position in Lithia Motors by 137.8% in the 4th quarter. Steadfast Capital Management LP now owns 460,298 shares of the company's stock valued at $164,524,000 after acquiring an additional 266,715 shares during the period. Hotchkis & Wiley Capital Management LLC increased its position in Lithia Motors by 8.8% in the 1st quarter. Hotchkis & Wiley Capital Management LLC now owns 376,467 shares of the company's stock valued at $110,508,000 after acquiring an additional 30,420 shares during the period. Finally, Advent International L.P. boosted its stake in Lithia Motors by 32.1% during the 1st quarter. Advent International L.P. now owns 286,786 shares of the company's stock valued at $84,183,000 after purchasing an additional 69,635 shares in the last quarter.

Insider Activity

In related news, Director Shauna Mcintyre sold 256 shares of Lithia Motors stock in a transaction dated Thursday, July 31st. The stock was 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 ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 0.87% of the company's stock.

Lithia Motors Stock Down 2.8%

NYSE LAD traded down $9.66 during trading on Friday, hitting $334.34. 234,700 shares of the company traded hands, compared to its average volume of 287,090. Lithia Motors, Inc. has a 12 month low of $262.10 and a 12 month high of $405.67. The business has a fifty day simple moving average of $319.94 and a 200 day simple moving average of $313.74. The company has a current ratio of 1.22, a quick ratio of 0.29 and a debt-to-equity ratio of 1.24. The company has a market capitalization of $8.57 billion, a P/E ratio of 9.91, a PEG ratio of 0.70 and a beta of 1.31.

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

Lithia Motors announced that its board has authorized a share repurchase plan on Tuesday, August 26th that authorizes the company to buyback $750.00 million in outstanding shares. This buyback authorization authorizes the company to purchase up to 9% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's management believes its shares are undervalued.

Lithia Motors Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, August 22nd. Stockholders of record on Friday, August 8th were given a $0.55 dividend. This represents a $2.20 annualized dividend and a dividend 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%.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on LAD shares. Bank of America decreased their price target on Lithia Motors from $500.00 to $385.00 and set a "buy" rating for the company in a research note on Wednesday. JPMorgan Chase & Co. reduced their price objective on Lithia Motors from $335.00 to $315.00 and set an "overweight" rating for the company in a research note on Tuesday, August 5th. The Goldman Sachs Group initiated coverage on Lithia Motors in a research report on Tuesday, June 3rd. They issued a "neutral" rating and a $340.00 target price for the company. Guggenheim decreased their target price on Lithia Motors from $383.00 to $380.00 and set a "buy" rating for the company in a research report on Monday, August 11th. Finally, Wells Fargo & Company decreased their target price on 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. Eight research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $370.45.

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.