Cubist Systematic Strategies LLC Makes New Investment in 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 bought a new stake in Lithia Motors, Inc. (NYSE:LAD - Free Report) in the first quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund bought 62,235 shares of the company's stock, valued at approximately $18,268,000. Cubist Systematic Strategies LLC owned 0.24% of Lithia Motors as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors have also recently bought and sold shares of the stock. Steadfast Capital Management LP lifted its position in Lithia Motors by 137.8% during the fourth quarter. Steadfast Capital Management LP now owns 460,298 shares of the company's stock valued at $164,524,000 after buying an additional 266,715 shares in the last quarter. Assenagon Asset Management S.A. acquired a new position in Lithia Motors during the first quarter valued at approximately $36,762,000. Nuveen LLC acquired a new position in Lithia Motors during the first quarter valued at approximately $32,824,000. Janney Montgomery Scott LLC lifted its position in shares of Lithia Motors by 1,865.4% during the first quarter. Janney Montgomery Scott LLC now owns 92,293 shares of the company's stock worth $27,092,000 after purchasing an additional 87,597 shares in the last quarter. Finally, GAMMA Investing LLC lifted its position in shares of Lithia Motors by 44,194.6% during the first quarter. GAMMA Investing LLC now owns 73,972 shares of the company's stock worth $21,714,000 after purchasing an additional 73,805 shares in the last quarter.

Insiders Place Their Bets

In other news, Director Shauna Mcintyre sold 256 shares of the business's 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 approximately $403,236.80. The trade was a 15.69% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 0.87% of the stock is owned by corporate insiders.

Lithia Motors Price Performance

Shares of NYSE:LAD traded up $8.27 during trading hours on Thursday, hitting $340.03. 174,838 shares of the company's stock traded hands, compared to its average volume of 337,474. Lithia Motors, Inc. has a 52 week low of $255.32 and a 52 week high of $405.67. The company has a debt-to-equity ratio of 1.24, a quick ratio of 0.29 and a current ratio of 1.22. The company's fifty day simple moving average is $320.41 and its two-hundred day simple moving average is $314.74. The company has a market cap of $8.72 billion, a price-to-earnings ratio of 10.08, 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 quarterly earnings data on Tuesday, July 29th. The company reported $10.24 EPS for the quarter, beating analysts' consensus estimates of $9.78 by $0.46. The company had revenue of $9.58 billion during the quarter, compared to analyst estimates of $9.56 billion. Lithia Motors had a net margin of 2.39% and a return on equity of 13.21%. As a group, equities analysts anticipate that Lithia Motors, Inc. will post 34.45 EPS for the current fiscal year.

Lithia Motors declared that its Board of Directors has initiated a stock buyback plan on Tuesday, August 26th that allows the company to repurchase $750.00 million in shares. This repurchase authorization allows the company to repurchase up to 9% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's board believes its shares are undervalued.

Lithia Motors Dividend Announcement

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

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on LAD shares. Guggenheim cut their price target on shares of Lithia Motors from $383.00 to $380.00 and set a "buy" rating on the stock in a report on Monday, August 11th. Jefferies Financial Group started coverage on shares of Lithia Motors in a report on Thursday. They issued a "buy" rating and a $400.00 price target on the stock. Bank of America upped their price target on shares of Lithia Motors from $430.00 to $500.00 and gave the company a "buy" rating in a report on Monday, June 16th. JPMorgan Chase & Co. dropped their target price on shares of Lithia Motors from $335.00 to $315.00 and set an "overweight" rating on the stock in a report on Tuesday, August 5th. Finally, The Goldman Sachs Group assumed coverage on shares of Lithia Motors in a research report on Tuesday, June 3rd. They issued a "neutral" rating and a $340.00 price target on the stock. Eight analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat.com, Lithia Motors has a consensus rating of "Moderate Buy" and an average price target of $380.91.

About Lithia Motors

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.