Cinctive Capital Management LP Purchases New Holdings in Lithia Motors, Inc. $LAD

Key Points

• Cinctive Capital Management LP has made a new investment in Lithia Motors, acquiring 1,796 shares worth approximately $527,000 in the first quarter.
• Director Shauna Mcintyre sold 256 shares of Lithia Motors, decreasing her ownership by 15.69%, valued at around $403,237 after the transaction.
• Lithia Motors has announced a $750 million stock buyback program and reported earnings of $10.24 per share, exceeding analysts' predictions.

Cinctive Capital Management LP bought a new stake in shares of Lithia Motors, Inc. (NYSE:LAD - Free Report) during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm bought 1,796 shares of the company's stock, valued at approximately $527,000.

Other large investors also recently added to or reduced their stakes in the company. NBC Securities Inc. purchased a new stake in Lithia Motors during the 1st quarter valued at approximately $59,000. UMB Bank n.a. lifted its holdings in shares of Lithia Motors by 63.7% in the first quarter. UMB Bank n.a. now owns 203 shares of the company's stock worth $60,000 after buying an additional 79 shares in the last quarter. CWM LLC boosted its position in shares of Lithia Motors by 30.1% during the first quarter. CWM LLC now owns 212 shares of the company's stock worth $62,000 after acquiring an additional 49 shares during the last quarter. GAMMA Investing LLC grew its stake in Lithia Motors by 50.9% during the first quarter. GAMMA Investing LLC now owns 252 shares of the company's stock valued at $74,000 after acquiring an additional 85 shares in the last quarter. Finally, Quarry LP purchased a new position in Lithia Motors during the first quarter valued at $136,000.

Insiders Place Their Bets

In related news, Director Shauna Mcintyre sold 256 shares of the firm's stock in a transaction on Thursday, July 31st. The stock was sold at an average price of $293.05, for a total value of $75,020.80. Following the completion of the sale, the director directly 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 sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 0.87% of the company's stock.

Analysts Set New Price Targets

Several analysts have commented on the stock. Bank of America decreased their price target on shares of Lithia Motors from $500.00 to $385.00 and set a "buy" rating on the stock in a research note on Wednesday. Jefferies Financial Group assumed coverage on Lithia Motors in a report on Thursday, September 4th. They issued a "buy" rating and a $400.00 target price on the stock. Guggenheim dropped their price target on Lithia Motors from $383.00 to $380.00 and set a "buy" rating for the company in a research note on Monday, August 11th. Citigroup raised their price target on Lithia Motors from $378.00 to $383.00 and gave the company a "buy" rating in a report on Tuesday, August 5th. Finally, Wells Fargo & Company reduced their price objective on 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. Eight analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $370.45.

Lithia Motors Price Performance

Shares of NYSE LAD traded up $6.07 during mid-day trading on Thursday, hitting $343.14. 413,636 shares of the company's stock traded hands, compared to its average volume of 281,807. The company has a debt-to-equity ratio of 1.24, a current ratio of 1.22 and a quick ratio of 0.29. Lithia Motors, Inc. has a 1 year low of $262.10 and a 1 year high of $405.67. The company's 50-day moving average is $320.31 and its two-hundred day moving average is $313.82. The company has a market capitalization of $8.80 billion, a P/E ratio of 10.17, a PEG ratio of 0.52 and a beta of 1.31.

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

Lithia Motors declared that its board has authorized a share buyback plan on Tuesday, August 26th that permits the company to buyback $750.00 million in outstanding shares. This buyback authorization permits the company to buy up to 9% of its stock through open market purchases. Stock buyback plans are usually a sign that the company's leadership believes its stock is undervalued.

Lithia Motors Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, August 22nd. Stockholders of record on Friday, August 8th were given a dividend of $0.55 per share. The ex-dividend date of this dividend was Friday, August 8th. This represents a $2.20 annualized dividend and a dividend yield of 0.6%. Lithia Motors's payout ratio is currently 6.52%.

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.