Caxton Associates LLP Purchases Shares of 4,551 Lithia Motors, Inc. $LAD

Key Points

• Caxton Associates LLP has acquired 4,551 shares of Lithia Motors, valued at approximately $1,336,000, indicating increased interest from institutional investors.
• Lithia Motors reported earnings of $10.24 per share, exceeding analysts' expectations, and announced a quarterly dividend of $0.55 per share.
• The company authorized a $750 million stock buyback program, reflecting confidence from its board in the stock's undervaluation.

Caxton Associates LLP bought a new position in Lithia Motors, Inc. (NYSE:LAD - Free Report) during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor bought 4,551 shares of the company's stock, valued at approximately $1,336,000.

A number of other institutional investors have also recently modified their holdings of LAD. Goldman Sachs Group Inc. increased its position in shares of Lithia Motors by 67.6% during the first quarter. Goldman Sachs Group Inc. now owns 113,346 shares of the company's stock valued at $33,272,000 after acquiring an additional 45,716 shares in the last quarter. Jones Financial Companies Lllp increased its position in shares of Lithia Motors by 1,763.6% during the first quarter. Jones Financial Companies Lllp now owns 12,989 shares of the company's stock valued at $3,813,000 after acquiring an additional 12,292 shares in the last quarter. Financial Strategies Group Inc. increased its position in shares of Lithia Motors by 27.6% during the first quarter. Financial Strategies Group Inc. now owns 2,174 shares of the company's stock valued at $632,000 after acquiring an additional 470 shares in the last quarter. Park West Asset Management LLC bought a new stake in shares of Lithia Motors during the first quarter valued at approximately $58,825,000. Finally, PenderFund Capital Management Ltd. purchased a new stake in shares of Lithia Motors during the first quarter valued at $704,000.

Lithia Motors Stock Performance

Shares of LAD stock traded down $2.32 during trading hours on Monday, reaching $331.74. 29,850 shares of the company traded hands, compared to its average volume of 334,051. Lithia Motors, Inc. has a 12-month low of $262.10 and a 12-month high of $405.67. 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 company has a market cap of $8.51 billion, a P/E ratio of 9.83, a P/E/G ratio of 0.68 and a beta of 1.31. The firm has a 50-day moving average price of $319.94 and a 200 day moving average price of $313.31.

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

Lithia Motors Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, August 22nd. Investors of record on Friday, August 8th were paid a dividend of $0.55 per share. This represents a $2.20 annualized dividend and a yield of 0.7%. The ex-dividend date of this dividend was Friday, August 8th. Lithia Motors's dividend payout ratio (DPR) is 6.52%.

Lithia Motors announced that its Board of Directors has initiated a share repurchase plan on Tuesday, August 26th that authorizes the company to repurchase $750.00 million in outstanding shares. This repurchase authorization authorizes the company to purchase up to 9% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's board believes its stock is undervalued.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on the company. Bank of America dropped their price objective on Lithia Motors from $500.00 to $385.00 and set a "buy" rating on the stock in a research report on Wednesday, September 10th. Citigroup increased their price objective on Lithia Motors from $378.00 to $383.00 and gave the company a "buy" rating in a research report on Tuesday, August 5th. Jefferies Financial Group assumed coverage on Lithia Motors in a research report on Thursday, September 4th. They set a "buy" rating and a $400.00 price objective on the stock. The Goldman Sachs Group assumed coverage on Lithia Motors in a research report on Tuesday, June 3rd. They set a "neutral" rating and a $340.00 price objective on the stock. 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 report on Monday, August 11th. Eight research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $370.45.

Insider Transactions at Lithia Motors

In related news, Director Shauna Mcintyre sold 256 shares of Lithia Motors 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 sale, the director owned 1,376 shares of the company's stock, valued at approximately $403,236.80. This trade represents a 15.69% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed 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.