Bank of America Corp DE Purchases Shares of 73,570 Lithia Motors, Inc. $LAD

Key Points

• Bank of America initiated a Lithia Motors position by purchasing 73,570 shares worth approximately $21.4 million, representing 0.33% of the company.
• Lithia Motors reported quarterly EPS of $10.03, exceeding estimates of $8.73, while revenue rose 2.2% year over year to $9.79 billion. The company also increased its quarterly dividend to $0.70 per share.
• LAD shares opened at $307.21, below their 50-day moving average of $361.21. Analysts maintain a “Moderate Buy” consensus with an average price target of $431.22.

Bank of America Corp DE purchased a new position in Lithia Motors, Inc. (NYSE:LAD - Free Report) in the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 73,570 shares of the company's stock, valued at approximately $21,371,000. Bank of America Corp DE owned 0.33% of Lithia Motors at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently modified their holdings of the company. Clearstead Advisors LLC increased its stake in Lithia Motors by 111.4% in the 4th quarter. Clearstead Advisors LLC now owns 93 shares of the company's stock worth $31,000 after acquiring an additional 49 shares during the last quarter. Addison Advisors LLC bought a new position in shares of Lithia Motors during the 2nd quarter valued at approximately $30,000. Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in shares of Lithia Motors during the 2nd quarter valued at approximately $30,000. Versant Capital Management Inc grew its holdings in shares of Lithia Motors by 1,311.1% in the second quarter. Versant Capital Management Inc now owns 127 shares of the company's stock valued at $37,000 after purchasing an additional 118 shares in the last quarter. Finally, Caitong International Asset Management Co. Ltd increased its position in Lithia Motors by 225.5% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 166 shares of the company's stock worth $55,000 after purchasing an additional 115 shares during the last quarter.

Lithia Motors Trading Down 1.6%

LAD opened at $307.21 on Thursday. The company has a debt-to-equity ratio of 1.46, a quick ratio of 0.21 and a current ratio of 1.00. The stock's 50 day moving average price is $361.21 and its 200-day moving average price is $309.34. Lithia Motors, Inc. has a one year low of $239.78 and a one year high of $439.49. The stock has a market cap of $6.75 billion, a price-to-earnings ratio of 10.19, a P/E/G ratio of 0.66 and a beta of 1.23.

Lithia Motors (NYSE:LAD - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The company reported $10.03 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $8.73 by $1.30. Lithia Motors had a return on equity of 12.16% and a net margin of 1.88%.The company had revenue of $9.79 billion during the quarter, compared to analysts' expectations of $9.64 billion. During the same quarter in the previous year, the business earned $10.24 EPS. Lithia Motors's revenue was up 2.2% compared to the same quarter last year. On average, equities analysts forecast that Lithia Motors, Inc. will post 36 EPS for the current year.

Lithia Motors Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 21st. Investors of record on Friday, August 7th were issued a dividend of $0.70 per share. This represents a $2.80 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date was Friday, August 7th. This is a positive change from Lithia Motors's previous quarterly dividend of $0.57. Lithia Motors's dividend payout ratio (DPR) is 9.29%.

Insiders Place Their Bets

In other Lithia Motors news, Director Stacy Congdon sold 75 shares of the business's stock in a transaction dated Friday, September 11th. The shares were sold at an average price of $370.73, for a total value of $27,804.75. Following the completion of the sale, the director directly owned 2,300 shares of the company's stock, valued at $852,679. The trade was a 3.16% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.08% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on LAD shares. Benchmark increased their price objective on shares of Lithia Motors from $400.00 to $475.00 and gave the company a "buy" rating in a research report on Thursday, July 30th. Citigroup decreased their target price on shares of Lithia Motors from $455.00 to $409.00 and set a "buy" rating on the stock in a research report on Tuesday. Bank of America increased their price target on shares of Lithia Motors from $350.00 to $417.00 and gave the company a "buy" rating in a report on Thursday, July 9th. UBS Group lowered Lithia Motors from a "buy" rating to a "neutral" rating and lifted their price target for the stock from $370.00 to $440.00 in a research report on Thursday, July 30th. Finally, Barclays boosted their price objective on Lithia Motors from $360.00 to $415.00 and gave the stock an "overweight" rating in a research note on Wednesday, August 19th. Six research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $431.22.

About Lithia Motors

Lithia Motors, operating under the Lithia & Driveway name, is an automotive retail company that sells new and used vehicles through a network of dealerships and digital channels. Its retail operations represent numerous automobile manufacturers and provide customers with vehicle purchasing, financing, leasing and protection products.

The company also operates parts and service departments that provide maintenance, repairs, collision work and replacement parts. Through its Driveway platform, Lithia offers online vehicle shopping, financing, trade-ins and delivery services, extending its automotive retail model beyond traditional dealership locations.

Founded in 1946 in Ashland, Oregon, Lithia Motors has expanded through acquisitions and dealership development.

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