California State Teachers Retirement System Grows Holdings in Lithia Motors, Inc. $LAD

Key Points

• California State Teachers Retirement System increased its Lithia Motors stake by 17.3% in the first quarter, bringing its holdings to 28,338 shares worth approximately $7.1 million. Other institutional investors also added to or initiated positions.
• Lithia Motors reported quarterly EPS of $10.03, beating the $8.73 consensus estimate, while revenue rose 2.2% year over year to $9.79 billion. Analysts maintain a “Moderate Buy” consensus with an average price target of $425.20.
• The company raised its quarterly dividend to $0.70 per share and authorized a $500 million share-repurchase program, allowing it to buy back up to 7.9% of outstanding shares. Recent insider activity was otherwise negative, with insiders selling 782 shares worth about $229,572 over 90 days.

California State Teachers Retirement System raised its position in shares of Lithia Motors, Inc. (NYSE:LAD - Free Report) by 17.3% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 28,338 shares of the company's stock after purchasing an additional 4,176 shares during the quarter. California State Teachers Retirement System owned 0.12% of Lithia Motors worth $7,077,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the company. Clearstead Advisors LLC raised its holdings in Lithia Motors by 111.4% during the fourth quarter. Clearstead Advisors LLC now owns 93 shares of the company's stock valued at $31,000 after acquiring an additional 49 shares during the period. V Square Quantitative Management LLC purchased a new position in shares of Lithia Motors during the fourth quarter valued at about $34,000. Quarry LP boosted its stake in Lithia Motors by 101.9% during the fourth quarter. Quarry LP now owns 109 shares of the company's stock valued at $36,000 after buying an additional 55 shares during the last quarter. Los Angeles Capital Management LLC bought a new stake in Lithia Motors in the 4th quarter worth approximately $38,000. Finally, Bessemer Group Inc. grew its holdings in shares of Lithia Motors by 68.0% in the first quarter. Bessemer Group Inc. now owns 173 shares of the company's stock valued at $43,000 after purchasing an additional 70 shares in the last quarter.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on LAD shares. Citigroup lifted their price objective on shares of Lithia Motors from $365.00 to $455.00 and gave the stock a "buy" rating in a research note on Monday. Jefferies Financial Group restated a "buy" rating and issued a $490.00 price target on shares of Lithia Motors in a research report on Thursday, July 30th. Bank of America boosted their price objective on shares of Lithia Motors from $350.00 to $417.00 and gave the company a "buy" rating in a research report on Thursday, July 9th. UBS Group lowered shares of Lithia Motors from a "buy" rating to a "neutral" rating and raised their target price for the stock from $370.00 to $440.00 in a report on Thursday, July 30th. Finally, Barclays cut their price target on shares of Lithia Motors from $370.00 to $360.00 and set an "overweight" rating on the stock in a report on Wednesday, July 15th. Seven research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat.com, Lithia Motors currently has a consensus rating of "Moderate Buy" and an average price target of $425.20.

Insider Buying and Selling at Lithia Motors

In other Lithia Motors news, Director Richard J. Bailey, Jr. sold 297 shares of the stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $280.57, for a total transaction of $83,329.29. Following the transaction, the director directly owned 760 shares in the company, valued at $213,233.20. This represents a 28.10% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Shauna Mcintyre sold 245 shares of the firm's stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $294.64, for a total transaction of $72,186.80. Following the transaction, the director directly owned 1,846 shares in the company, valued at $543,905.44. This trade represents a 11.72% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 782 shares of company stock worth $229,572. Insiders own 1.08% of the company's stock.

Lithia Motors Trading Down 0.8%

NYSE LAD opened at $368.16 on Thursday. The stock has a market cap of $8.40 billion, a PE ratio of 12.21, a PEG ratio of 0.81 and a beta of 1.22. The company has a current ratio of 1.00, a quick ratio of 0.21 and a debt-to-equity ratio of 1.46. Lithia Motors, Inc. has a 12 month low of $239.78 and a 12 month high of $439.49. The company's 50-day moving average price is $319.04 and its 200-day moving average price is $296.58.

Lithia Motors (NYSE:LAD - Get Free Report) last issued its earnings results on Wednesday, July 29th. The company reported $10.03 EPS for the quarter, topping analysts' consensus estimates of $8.73 by $1.30. Lithia Motors had a net margin of 1.88% and a return on equity of 12.16%. The business had revenue of $9.79 billion for the quarter, compared to the consensus estimate of $9.64 billion. During the same period in the prior year, the firm earned $10.24 EPS. The company's revenue for the quarter was up 2.2% compared to the same quarter last year. Equities research analysts forecast that Lithia Motors, Inc. will post 34.9 earnings per share for the current year.

Lithia Motors Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, August 21st. Stockholders of record on Friday, August 7th will be given a dividend of $0.70 per share. This represents a $2.80 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend is Friday, August 7th. This is a positive change from Lithia Motors's previous quarterly dividend of $0.57. Lithia Motors's dividend payout ratio is currently 7.56%.

Lithia Motors declared that its Board of Directors has approved a share repurchase program on Tuesday, May 26th that allows the company to repurchase $500.00 million in shares. This repurchase authorization allows the company to reacquire up to 7.9% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company's leadership believes its stock is undervalued.

Lithia Motors Profile

Lithia Motors, Inc is an American automotive retailer headquartered in Medford, Oregon. Founded in 1946 as a small auto body and glass shop, the company has grown through organic expansion and strategic acquisitions to become one of the largest automotive retail networks in North America. Lithia operates dealerships across the United States and Canada, offering a broad portfolio of new and pre-owned vehicles from more than 40 different manufacturers.

The company's core business activities include vehicle sales, financing, insurance, parts and service.

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