Brave Warrior Advisors LLC Sells 230,677 Shares of Lithia Motors, Inc. $LAD

Key Points

• Brave Warrior Advisors LLC has reduced its stake in Lithia Motors by 37.7%, selling 230,677 shares and now holding 381,889 shares, which make up 2.6% of its portfolio.
• Lithia Motors' quarterly earnings report showed an earnings per share (EPS) of $10.24, exceeding analysts' expectations, with revenue reaching $9.58 billion.
• The company has initiated a $750 million share repurchase program, indicating a belief that its shares are undervalued, and declared a quarterly dividend of $0.55 per share.

Brave Warrior Advisors LLC reduced its position in shares of Lithia Motors, Inc. (NYSE:LAD - Free Report) by 37.7% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 381,889 shares of the company's stock after selling 230,677 shares during the period. Lithia Motors comprises about 2.6% of Brave Warrior Advisors LLC's investment portfolio, making the stock its 17th largest holding. Brave Warrior Advisors LLC owned 1.47% of Lithia Motors worth $112,100,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds also recently modified their holdings of the company. Cubist Systematic Strategies LLC acquired a new position in shares of Lithia Motors during the first quarter worth about $18,268,000. Caption Management LLC bought a new position in Lithia Motors in the first quarter valued at approximately $499,000. Quarry LP acquired a new position in shares of Lithia Motors during the 1st quarter worth approximately $136,000. Magnetar Financial LLC bought a new stake in shares of Lithia Motors during the 1st quarter worth approximately $334,000. Finally, Trexquant Investment LP bought a new stake in shares of Lithia Motors during the 1st quarter worth approximately $3,446,000.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on LAD. JPMorgan Chase & Co. dropped their price objective on Lithia Motors from $335.00 to $315.00 and set an "overweight" rating on the stock in a research note on Tuesday, August 5th. Jefferies Financial Group began coverage on Lithia Motors in a research note on Thursday. They set a "buy" rating and a $400.00 price objective on the stock. Citigroup upped their price objective on Lithia Motors from $378.00 to $383.00 and gave the stock a "buy" rating in a research note on Tuesday, August 5th. Wells Fargo & Company dropped their price objective on Lithia Motors from $364.00 to $317.00 and set an "equal weight" rating on the stock in a research note on Wednesday, July 30th. Finally, Guggenheim dropped their price objective 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. Eight investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, Lithia Motors currently has an average rating of "Moderate Buy" and a consensus target price of $380.91.

Lithia Motors Stock Performance

Shares of LAD traded up $1.01 during mid-day trading on Friday, reaching $341.10. The company's stock had a trading volume of 187,013 shares, compared to its average volume of 288,412. Lithia Motors, Inc. has a 1-year low of $255.32 and a 1-year high of $405.67. The stock has a market cap of $8.75 billion, a P/E ratio of 10.11, a PEG ratio of 0.53 and a beta of 1.31. The business has a 50-day simple moving average of $320.73 and a two-hundred day simple moving average of $314.22. The company has a current ratio of 1.22, a quick ratio of 0.29 and a debt-to-equity ratio of 1.24.

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

Lithia Motors Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, August 22nd. Stockholders of record on Friday, August 8th were paid 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 6.52%.

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

Insider Buying and Selling at Lithia Motors

In other news, Director Shauna Mcintyre sold 256 shares of the 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 transaction, the director owned 1,376 shares in the company, valued at approximately $403,236.80. This trade represents a 15.69% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company 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.