Aristides Capital LLC Makes New $616,000 Investment in Lithia Motors, Inc. $LAD

Key Points

• Aristides Capital LLC made a new investment of approximately $616,000 in Lithia Motors, acquiring 2,100 shares during the first quarter of the year.
• Several institutional investors have increased their positions in Lithia Motors, with UMB Bank n.a. growing its holdings by 63.7% this quarter.
• Lithia Motors recently reported earnings of $10.24 per share, exceeding analyst expectations, and declared a quarterly dividend of $0.55 per share, offering a yield of 0.7%.

Aristides Capital LLC acquired a new stake in Lithia Motors, Inc. (NYSE:LAD - Free Report) in the 1st quarter, according to the company in its most recent 13F filing with the SEC. The firm acquired 2,100 shares of the company's stock, valued at approximately $616,000.

A number of other large investors also recently modified their holdings of LAD. Abrams Capital Management L.P. boosted 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 buying an additional 53,490 shares during the last quarter. Dimensional Fund Advisors LP lifted its stake in shares of Lithia Motors by 6.1% during the first 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 boosted its holdings in Lithia Motors by 137.8% in the fourth 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 last quarter. Hotchkis & Wiley Capital Management LLC increased its position in Lithia Motors by 8.8% in 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, Madison Asset Management LLC increased its position in Lithia Motors by 9.9% in the first quarter. Madison Asset Management LLC now owns 280,456 shares of the company's stock worth $82,325,000 after purchasing an additional 25,331 shares during the period.

Lithia Motors Trading Down 0.4%

Shares of Lithia Motors stock traded down $1.21 during trading hours on Thursday, hitting $338.77. The company's stock had a trading volume of 318,262 shares, compared to its average volume of 329,772. The company has a market capitalization of $8.69 billion, a PE ratio of 10.04, a price-to-earnings-growth ratio of 0.53 and a beta of 1.30. 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 50 day moving average of $320.44 and a 200 day moving average of $315.99. Lithia Motors, Inc. has a 12 month low of $255.32 and a 12 month high of $405.67.

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

Lithia Motors Dividend Announcement

The company 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. The ex-dividend date was Friday, August 8th. This represents a $2.20 dividend on an annualized basis and a dividend yield of 0.6%. Lithia Motors's dividend payout ratio (DPR) is presently 6.52%.

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

Analyst Upgrades and Downgrades

A number of research firms have issued reports on LAD. Wells Fargo & Company cut 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. JPMorgan Chase & Co. dropped their price target on shares of Lithia Motors from $335.00 to $315.00 and set an "overweight" rating for the company in a research note on Tuesday, August 5th. Bank of America raised their price objective on shares of Lithia Motors from $430.00 to $500.00 and gave the company a "buy" rating in a research note on Monday, June 16th. The Goldman Sachs Group initiated coverage on shares of Lithia Motors in a research report on Tuesday, June 3rd. They set a "neutral" rating and a $340.00 target price for the company. Finally, Guggenheim cut their price target 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. Seven equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $379.00.

Insider Buying and Selling

In other Lithia Motors news, Director Shauna Mcintyre sold 256 shares of the company's stock in a transaction that occurred 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 completion of 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 position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Insiders own 0.87% of the company's stock.

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.