Cubist Systematic Strategies LLC Acquires Shares of 62,235 Lithia Motors, Inc. $LAD

Key Points

• Cubist Systematic Strategies LLC has made an $18.27 million investment in Lithia Motors, acquiring approximately 62,235 shares, which represents about 0.24% of the company as of the latest quarter.
• Analysts have issued varying ratings for Lithia Motors, with a consensus rating of "Moderate Buy" and an average price target of $379.00, reflecting strong institutional interest in the stock.
• Lithia Motors has authorized a $750 million share repurchase program, indicating that the company's board believes its stock may be undervalued.

Cubist Systematic Strategies LLC purchased a new position in Lithia Motors, Inc. (NYSE:LAD - Free Report) during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 62,235 shares of the company's stock, valued at approximately $18,268,000. Cubist Systematic Strategies LLC owned approximately 0.24% of Lithia Motors at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also recently modified their holdings of LAD. Caption Management LLC bought a new position in shares of Lithia Motors in the first quarter worth approximately $499,000. Quarry LP bought a new position in shares of Lithia Motors in the first quarter worth approximately $136,000. Magnetar Financial LLC bought a new position in shares of Lithia Motors in the first quarter worth approximately $334,000. Trexquant Investment LP bought a new position in shares of Lithia Motors in the first quarter worth approximately $3,446,000. Finally, Beck Bode LLC bought a new position in shares of Lithia Motors in the first quarter worth approximately $1,181,000.

Lithia Motors Trading Up 0.3%

Shares of Lithia Motors stock traded up $1.01 on Friday, hitting $341.10. The stock had a trading volume of 187,013 shares, compared to its average volume of 288,412. 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 one year low of $255.32 and a one year high of $405.67. The stock has a market cap of $8.75 billion, a price-to-earnings ratio of 10.11, a PEG ratio of 0.53 and a beta of 1.31. The stock's 50-day simple moving average is $320.73 and its two-hundred day simple moving average is $314.22.

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

Lithia Motors Dividend Announcement

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. The ex-dividend date was Friday, August 8th. This represents a $2.20 annualized dividend and a yield of 0.6%. Lithia Motors's payout ratio is 6.52%.

Lithia Motors declared that its Board of Directors has approved a stock repurchase plan on Tuesday, August 26th that permits the company to buyback $750.00 million in shares. This buyback authorization permits the company to reacquire up to 9% of its shares through open market purchases. Shares buyback plans are usually a sign that the company's management believes its stock is undervalued.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on LAD. Bank of America upped their price objective 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. Jefferies Financial Group started coverage on shares of Lithia Motors in a research report on Thursday. They set a "buy" rating and a $400.00 price target on the stock. 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 report on Wednesday, July 30th. JPMorgan Chase & Co. reduced their price target 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. Finally, Citigroup increased their price target on shares of Lithia Motors from $378.00 to $383.00 and gave the company a "buy" rating in a research report on Tuesday, August 5th. Eight investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat, Lithia Motors presently has an average rating of "Moderate Buy" and an average target price of $380.91.

Insiders Place Their Bets

In related news, Director Shauna Mcintyre sold 256 shares of Lithia Motors stock in a transaction on Thursday, July 31st. The shares were sold at an average price of $293.05, for a total value of $75,020.80. Following the sale, the director owned 1,376 shares in the company, valued at $403,236.80. The trade was a 15.69% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 0.87% of the stock is currently owned by company 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.