Chicago Capital LLC Purchases 11,384 Shares of Lithia Motors, Inc. $LAD

Key Points

• Chicago Capital LLC raised its stake in Lithia Motors by 6.1%, buying 11,384 shares to hold 198,392 shares (about 0.82% of the company) worth roughly $65.93 million, making LAD its 19th largest holding.
• Lithia missed quarterly EPS ($6.74 vs. $8.09 expected) while revenue was roughly in line at $9.20 billion; the company pays a $0.55 quarterly dividend (annual $2.20, yield 0.8%) and trades with a market cap of $6.61 billion and a P/E of 8.8.
• Analysts have trimmed targets recently (e.g., Wells Fargo to $293, Citi to $326, BofA to $320) and ratings are mixed—six Buys, five Holds, one Sell—leaving a consensus rating of Hold and an average target near $361.

Chicago Capital LLC grew its position in shares of Lithia Motors, Inc. (NYSE:LAD - Free Report) by 6.1% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 198,392 shares of the company's stock after purchasing an additional 11,384 shares during the period. Lithia Motors comprises about 1.6% of Chicago Capital LLC's holdings, making the stock its 19th largest holding. Chicago Capital LLC owned approximately 0.82% of Lithia Motors worth $65,932,000 at the end of the most recent reporting period.

Other hedge funds have also recently added to or reduced their stakes in the company. Mitsubishi UFJ Trust & Banking Corp bought a new stake in Lithia Motors during the third quarter worth about $1,601,000. Abrams Capital Management L.P. lifted its stake in Lithia Motors by 1.9% during the third quarter. Abrams Capital Management L.P. now owns 2,490,534 shares of the company's stock worth $787,009,000 after purchasing an additional 45,856 shares during the last quarter. Bridges Investment Management Inc. lifted its stake in Lithia Motors by 3.0% during the third quarter. Bridges Investment Management Inc. now owns 263,157 shares of the company's stock worth $83,158,000 after purchasing an additional 7,558 shares during the last quarter. Arkadios Wealth Advisors bought a new stake in Lithia Motors during the third quarter worth about $557,000. Finally, Jupiter Asset Management Ltd. bought a new stake in Lithia Motors during the third quarter worth about $548,000.

Lithia Motors Stock Up 2.9%

LAD stock opened at $282.80 on Friday. Lithia Motors, Inc. has a fifty-two week low of $239.78 and a fifty-two week high of $360.55. The business's 50 day moving average price is $272.31 and its two-hundred day moving average price is $304.54. The company has a debt-to-equity ratio of 1.46, a quick ratio of 0.26 and a current ratio of 1.17. The company has a market capitalization of $6.61 billion, a price-to-earnings ratio of 8.80, a price-to-earnings-growth ratio of 0.65 and a beta of 1.22.

Lithia Motors (NYSE:LAD - Get Free Report) last posted its earnings results on Wednesday, February 11th. The company reported $6.74 earnings per share for the quarter, missing analysts' consensus estimates of $8.09 by ($1.35). Lithia Motors had a return on equity of 12.76% and a net margin of 2.18%.The firm had revenue of $9.20 billion for the quarter, compared to analysts' expectations of $9.19 billion. During the same quarter last year, the company posted $7.79 EPS. The firm's revenue was up .3% on a year-over-year basis. As a group, analysts forecast that Lithia Motors, Inc. will post 34.45 earnings per share for the current fiscal year.

Lithia Motors Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, March 20th. Shareholders of record on Friday, March 6th were issued a dividend of $0.55 per share. The ex-dividend date was Friday, March 6th. This represents a $2.20 dividend on an annualized basis and a dividend yield of 0.8%. Lithia Motors's dividend payout ratio is 6.85%.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on LAD shares. Wells Fargo & Company dropped their price target on Lithia Motors from $355.00 to $293.00 and set an "equal weight" rating for the company in a research note on Monday, April 13th. Weiss Ratings reissued a "hold (c+)" rating on shares of Lithia Motors in a research note on Thursday, January 22nd. Citigroup lowered their target price on Lithia Motors from $366.00 to $326.00 and set a "buy" rating for the company in a research note on Wednesday, April 8th. Zacks Research lowered Lithia Motors from a "hold" rating to a "strong sell" rating in a research note on Wednesday, March 25th. Finally, Bank of America lowered their target price on Lithia Motors from $335.00 to $320.00 in a research note on Monday, April 13th. Six investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $361.00.

Lithia Motors Company 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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