Chicago Capital LLC Has $66.79 Million Stake in Lithia Motors, Inc. $LAD

Key Points

• Chicago Capital LLC reduced its stake in Lithia Motors by 8.0% in the second quarter, holding approximately $66.79 million worth of shares, which is about 1.6% of its portfolio.
• Lithia Motors reported a quarterly EPS of $10.24, surpassing analyst expectations of $9.78, and had a revenue of $9.58 billion.
• The company has authorized a $750 million share buyback program, indicating that the board believes its shares are undervalued.

Chicago Capital LLC lowered its stake in Lithia Motors, Inc. (NYSE:LAD - Free Report) by 8.0% in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 197,722 shares of the company's stock after selling 17,148 shares during the quarter. Lithia Motors accounts for approximately 1.6% of Chicago Capital LLC's portfolio, making the stock its 22nd largest position. Chicago Capital LLC owned approximately 0.76% of Lithia Motors worth $66,794,000 as of its most recent SEC filing.

Other hedge funds also recently modified their holdings of the company. Parallel Advisors LLC increased its stake in shares of Lithia Motors by 106.2% in the 2nd quarter. Parallel Advisors LLC now owns 134 shares of the company's stock valued at $45,000 after acquiring an additional 69 shares in the last quarter. eCIO Inc. bought a new stake in shares of Lithia Motors in the 1st quarter valued at $55,000. NBC Securities Inc. bought a new stake in shares of Lithia Motors in the 1st quarter valued at $59,000. UMB Bank n.a. increased its stake in shares of Lithia Motors by 63.7% in the 1st quarter. UMB Bank n.a. now owns 203 shares of the company's stock valued at $60,000 after acquiring an additional 79 shares in the last quarter. Finally, CWM LLC increased its stake in shares of Lithia Motors by 30.1% in the 1st quarter. CWM LLC now owns 212 shares of the company's stock valued at $62,000 after acquiring an additional 49 shares in the last quarter.

Lithia Motors Stock Performance

NYSE LAD opened at $321.58 on Tuesday. Lithia Motors, Inc. has a 1 year low of $262.10 and a 1 year 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 firm has a market cap of $8.25 billion, a price-to-earnings ratio of 9.53, a PEG ratio of 0.64 and a beta of 1.31. The company has a fifty day moving average price of $318.67 and a 200-day moving average price of $315.00.

Lithia Motors (NYSE:LAD - Get Free Report) last posted 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. Lithia Motors had a net margin of 2.39% and a return on equity of 13.21%. The firm had revenue of $9.58 billion during the quarter, compared to analyst estimates of $9.56 billion. As a group, equities research analysts predict that Lithia Motors, Inc. will post 34.45 EPS for the current fiscal year.

Lithia Motors Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, August 22nd. Investors of record on Friday, August 8th were issued a $0.55 dividend. This represents a $2.20 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend was Friday, August 8th. Lithia Motors's payout ratio is 6.52%.

Lithia Motors declared that its Board of Directors has authorized a share buyback program 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 shares through open market purchases. Shares repurchase programs are often a sign that the company's board believes its shares are undervalued.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on LAD shares. Wells Fargo & Company lowered their price objective on shares of Lithia Motors from $364.00 to $317.00 and set an "equal weight" rating for the company in a research note on Wednesday, July 30th. Citigroup boosted their price target 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. Jefferies Financial Group assumed coverage on shares of Lithia Motors in a research note on Thursday, September 4th. They set a "buy" rating and a $400.00 price target for the company. The Goldman Sachs Group assumed coverage on shares of Lithia Motors in a research note on Tuesday, June 3rd. They set a "neutral" rating and a $340.00 price target for the company. Finally, JPMorgan Chase & Co. decreased their price target on shares of Lithia Motors from $335.00 to $315.00 and set an "overweight" rating for the company in a research note on Tuesday, August 5th. Eight equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $376.50.

Insider Buying and Selling at Lithia Motors

In related news, Director Shauna Mcintyre sold 256 shares of the business's stock in a transaction dated Thursday, July 31st. The shares were sold at an average price of $293.05, for a total value of $75,020.80. Following the transaction, the director directly owned 1,376 shares of the company's stock, valued at approximately $403,236.80. The trade was a 15.69% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 0.87% of the company's stock.

Lithia Motors Company 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.

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