CenterBook Partners LP Cuts Stock Holdings 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 holdings in shares of Lithia Motors, Inc. (NYSE:LAD - Free Report) by 36.8% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor 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 quarter.

Several other institutional investors and hedge funds also recently bought and sold shares of the business. Headlands Technologies LLC bought a new position in Lithia Motors in the 1st quarter worth approximately $1,145,000. Charles Schwab Investment Management Inc. lifted its stake in Lithia Motors by 1.3% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 210,934 shares of the company's stock worth $61,918,000 after purchasing an additional 2,681 shares in the last quarter. Abrams Capital Management L.P. lifted its stake in Lithia Motors by 2.2% in the 1st quarter. Abrams Capital Management L.P. now owns 2,444,678 shares of the company's stock worth $717,611,000 after purchasing an additional 53,490 shares in the last quarter. Westwood Holdings Group Inc. raised its position in shares of Lithia Motors by 10.2% during the 1st quarter. Westwood Holdings Group Inc. now owns 77,383 shares of the company's stock valued at $22,715,000 after buying an additional 7,186 shares in the last quarter. Finally, Scotia Capital Inc. purchased a new stake in shares of Lithia Motors during the 1st quarter valued at $3,505,000.

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on LAD shares. JPMorgan Chase & Co. decreased 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 report on Tuesday, August 5th. Guggenheim decreased their target price on shares of Lithia Motors from $417.00 to $356.00 and set a "buy" rating on the stock in a research report on Tuesday, April 22nd. The Goldman Sachs Group started coverage on shares of Lithia Motors in a research report on Tuesday, June 3rd. They issued a "neutral" rating and a $340.00 target price on the stock. Bank of America lifted their target price on shares of Lithia Motors from $430.00 to $500.00 and gave the stock a "buy" rating in a research report on Monday, June 16th. Finally, Wells Fargo & Company decreased 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 report on Wednesday, July 30th. Four research analysts have rated the stock with a hold rating and seven have issued a buy rating to the stock. According to data from MarketBeat, Lithia Motors currently has a consensus rating of "Moderate Buy" and an average price target of $376.60.

Lithia Motors Stock Performance

Shares of LAD traded down $0.61 during mid-day trading on Friday, hitting $292.21. 253,263 shares of the company traded hands, compared to its average volume of 390,020. The company has a debt-to-equity ratio of 1.24, a quick ratio of 0.29 and a current ratio of 1.22. The stock has a 50-day moving average price of $323.31 and a two-hundred day moving average price of $320.84. 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 $7.61 billion, a price-to-earnings ratio of 8.66, a P/E/G ratio of 0.45 and a beta of 1.30.

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

Lithia Motors Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 22nd. Stockholders of record on Friday, August 8th will be paid a $0.55 dividend. The ex-dividend date of this dividend is Friday, August 8th. This represents a $2.20 dividend on an annualized basis and a dividend yield of 0.8%. Lithia Motors's dividend payout ratio is 6.52%.

Insider Activity

In other Lithia Motors news, Director Shauna Mcintyre sold 256 shares of the stock in a transaction 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 transaction, the director owned 1,376 shares in the company, valued at $403,236.80. This trade represents a 15.69% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 0.87% of the stock is currently owned by company insiders.

About Lithia Motors

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.