CenterBook Partners LP Cuts Stake in Lithia Motors, Inc. (NYSE:LAD)

Key Points

• CenterBook Partners LP reduced its holding in Lithia Motors, Inc. by 36.8% in the first quarter, resulting in an ownership of 2,904 shares valued at $852,000.
• Several hedge funds have increased their positions in Lithia Motors, with Steadfast Capital Management LP raising its holdings by 137.8% and Janney Montgomery Scott LLC boosting theirs by an enormous 1,865.4%.
• Following recent earnings, analysts have mixed views on Lithia Motors, with Bank of America raising its price target significantly from $430 to $500, while Wells Fargo reduced it from $364 to $317.

CenterBook Partners LP reduced its stake in shares of Lithia Motors, Inc. (NYSE:LAD - Free Report) by 36.8% during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 2,904 shares of the company's stock after selling 1,689 shares during the quarter. CenterBook Partners LP's holdings in Lithia Motors were worth $852,000 at the end of the most recent reporting period.

A number of other hedge funds have also added to or reduced their stakes in LAD. NBC Securities Inc. purchased a new stake in Lithia Motors during the 1st quarter valued at about $59,000. UMB Bank n.a. grew its position in Lithia Motors by 63.7% during the 1st quarter. UMB Bank n.a. now owns 203 shares of the company's stock valued at $60,000 after purchasing an additional 79 shares during the last quarter. CWM LLC grew its position in Lithia Motors by 30.1% during the 1st quarter. CWM LLC now owns 212 shares of the company's stock valued at $62,000 after purchasing an additional 49 shares during the last quarter. GAMMA Investing LLC grew its position in Lithia Motors by 50.9% during the 1st quarter. GAMMA Investing LLC now owns 252 shares of the company's stock valued at $74,000 after purchasing an additional 85 shares during the last quarter. Finally, Forum Financial Management LP bought a new position in Lithia Motors during the 4th quarter valued at about $202,000.

Lithia Motors Stock Performance

Lithia Motors stock traded up $7.10 during midday trading on Tuesday, hitting $299.74. The stock had a trading volume of 69,408 shares, compared to its average volume of 338,608. The firm's fifty day moving average is $322.89 and its two-hundred day moving average is $320.29. The company has a market capitalization of $7.69 billion, a PE ratio of 8.89, a P/E/G ratio of 0.45 and a beta of 1.30. Lithia Motors, Inc. has a 52-week low of $255.32 and a 52-week high of $405.67. 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 released its earnings results on Tuesday, July 29th. The company reported $10.24 earnings per share (EPS) for the quarter, topping the consensus estimate of $9.78 by $0.46. The company had revenue of $9.58 billion during 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%. On average, research analysts forecast that Lithia Motors, Inc. will post 34.45 EPS for the current year.

Lithia Motors Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 22nd. Shareholders of record on Friday, August 8th will be issued a dividend of $0.55 per share. This represents a $2.20 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend is Friday, August 8th. Lithia Motors's dividend payout ratio (DPR) is 6.52%.

Insider Transactions at Lithia Motors

In other Lithia Motors news, Director Shauna Mcintyre sold 256 shares of the stock in a transaction that occurred on Thursday, July 31st. The shares were sold at an average price of $293.05, for a total transaction of $75,020.80. Following the completion of the sale, the director directly owned 1,376 shares of the company's stock, valued at $403,236.80. This trade represents a 15.69% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 0.87% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

Several research firms have issued reports on LAD. Bank of America upped their target price 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. Citigroup upped their target price on shares of Lithia Motors from $378.00 to $383.00 and gave the company a "buy" rating in a research note on Tuesday, August 5th. The Goldman Sachs Group began coverage on shares of Lithia Motors in a research note on Tuesday, June 3rd. They set a "neutral" rating and a $340.00 target price on the stock. Wells Fargo & Company lowered 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 note on Wednesday, July 30th. Finally, JPMorgan Chase & Co. lowered their target price on shares of Lithia Motors from $335.00 to $315.00 and set an "overweight" rating on the stock in a research note on Tuesday, August 5th. Four analysts have rated the stock with a hold rating and seven have issued a buy rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $379.00.

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.