Comerica Bank Sells 6,408 Shares of Lithia Motors, Inc. $LAD

Key Points

• Comerica Bank has reduced its stake in Lithia Motors by 17.7%, now holding 29,887 shares after selling 6,408 shares in the first quarter.
• Lithia Motors reported $10.24 earnings per share for the last quarter, surpassing expectations and achieving a revenue of $9.58 billion.
• The company has announced a stock buyback plan allowing it to repurchase up to $750 million of its outstanding shares, indicating potential confidence in its stock valuation.

Comerica Bank lowered its position in Lithia Motors, Inc. (NYSE:LAD - Free Report) by 17.7% during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 29,887 shares of the company's stock after selling 6,408 shares during the quarter. Comerica Bank owned about 0.11% of Lithia Motors worth $8,773,000 at the end of the most recent reporting period.

Other large investors have also recently made changes to their positions in the company. NBC Securities Inc. bought a new position in Lithia Motors during the 1st quarter valued at about $59,000. UMB Bank n.a. boosted its position in shares of Lithia Motors by 63.7% during the first quarter. UMB Bank n.a. now owns 203 shares of the company's stock valued at $60,000 after buying an additional 79 shares during the period. 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 valued at $62,000 after buying an additional 49 shares during the period. GAMMA Investing LLC grew its stake in shares of 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 buying an additional 85 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd purchased a new stake in shares of Lithia Motors in the first quarter worth approximately $143,000.

Lithia Motors Stock Down 1.2%

NYSE:LAD traded down $4.04 during mid-day trading on Tuesday, reaching $332.65. The company's stock had a trading volume of 319,585 shares, compared to its average volume of 297,334. The company has a quick ratio of 0.29, a current ratio of 1.22 and a debt-to-equity ratio of 1.24. Lithia Motors, Inc. has a 1 year low of $255.32 and a 1 year high of $405.67. The stock has a fifty day moving average of $320.42 and a 200-day moving average of $314.62. The firm has a market capitalization of $8.53 billion, a PE ratio of 9.86, a price-to-earnings-growth ratio of 0.52 and a beta of 1.31.

Lithia Motors (NYSE:LAD - Get Free Report) last posted 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 for the quarter, compared to the consensus estimate of $9.56 billion. Equities research analysts forecast that Lithia Motors, Inc. will post 34.45 earnings per share for the current year.

Lithia Motors Dividend Announcement

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

Lithia Motors declared that its board has approved a stock buyback program on Tuesday, August 26th that authorizes the company to repurchase $750.00 million in shares. This repurchase authorization authorizes the company to repurchase up to 9% of its shares through open market purchases. Shares repurchase programs are often an indication that the company's management believes its stock is undervalued.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on LAD. The Goldman Sachs Group initiated coverage on Lithia Motors in a report on Tuesday, June 3rd. They set a "neutral" rating and a $340.00 price objective for the company. Citigroup lifted their target price on Lithia Motors from $378.00 to $383.00 and gave the stock a "buy" rating in a research report on Tuesday, August 5th. Bank of America upped their price target on shares of Lithia Motors from $430.00 to $500.00 and gave the stock a "buy" rating in a report on Monday, June 16th. Wells Fargo & Company reduced their price target 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, Guggenheim decreased their price objective on shares of Lithia Motors from $383.00 to $380.00 and set a "buy" rating for the company in a report on Monday, August 11th. Seven investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, Lithia Motors has an average rating of "Moderate Buy" and a consensus target price of $379.00.

Insiders Place Their Bets

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

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.