Eisler Capital Management Ltd. Makes New $6.93 Million Investment in Lithia Motors, Inc. $LAD

Key Points

• Eisler Capital Management Ltd. has made a new investment of approximately $6.93 million in Lithia Motors, acquiring 23,689 shares, which represents 0.09% ownership in the company.
• Multiple large investors, including Mariner LLC and Stifel Financial Corp, have recently increased their stakes in Lithia Motors during the fourth quarter, reflecting growing confidence in the stock.
• Lithia Motors has authorized a $750 million share repurchase plan, indicating that its leadership believes the stock may be undervalued.

Eisler Capital Management Ltd. purchased a new stake in Lithia Motors, Inc. (NYSE:LAD - Free Report) in the first quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor purchased 23,689 shares of the company's stock, valued at approximately $6,934,000. Eisler Capital Management Ltd. owned about 0.09% of Lithia Motors as of its most recent filing with the Securities and Exchange Commission.

Other large investors have also bought and sold shares of the company. Wealth Enhancement Advisory Services LLC raised its position in Lithia Motors by 118.1% during the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 1,841 shares of the company's stock worth $541,000 after purchasing an additional 997 shares during the last quarter. Cambridge Investment Research Advisors Inc. grew its stake in shares of Lithia Motors by 1.5% in the 1st quarter. Cambridge Investment Research Advisors Inc. now owns 2,421 shares of the company's stock valued at $711,000 after buying an additional 35 shares during the period. Vident Advisory LLC grew its stake in shares of Lithia Motors by 4.3% in the 4th quarter. Vident Advisory LLC now owns 780 shares of the company's stock valued at $279,000 after buying an additional 32 shares during the period. GAMMA Investing LLC boosted its stake in Lithia Motors by 50.9% during the 1st quarter. GAMMA Investing LLC now owns 252 shares of the company's stock valued at $74,000 after purchasing an additional 85 shares during the last quarter. Finally, Invesco Ltd. boosted its stake in Lithia Motors by 4.4% during the 1st quarter. Invesco Ltd. now owns 119,466 shares of the company's stock valued at $35,068,000 after purchasing an additional 5,005 shares during the last quarter.

Analysts Set New Price Targets

A number of research firms have issued reports on LAD. Bank of America lifted their price target on Lithia Motors from $430.00 to $500.00 and gave the company a "buy" rating in a research note on Monday, June 16th. Wells Fargo & Company lowered 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 report on Wednesday, July 30th. Guggenheim dropped their target price on Lithia Motors from $383.00 to $380.00 and set a "buy" rating on the stock in a research report on Monday, August 11th. Citigroup upped their price target on shares of Lithia Motors from $378.00 to $383.00 and gave the stock a "buy" rating in a report on Tuesday, August 5th. Finally, The Goldman Sachs Group began coverage on shares of Lithia Motors in a report on Tuesday, June 3rd. They issued a "neutral" rating and a $340.00 price target on the stock. Seven investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, Lithia Motors has a consensus rating of "Moderate Buy" and an average target price of $379.00.

Lithia Motors Stock Down 0.6%

Shares of LAD stock traded down $2.11 during trading hours on Friday, hitting $336.40. 353,439 shares of the company's stock traded hands, compared to its average volume of 325,724. The stock's fifty day simple moving average is $320.54 and its two-hundred day simple moving average is $315.29. Lithia Motors, Inc. has a 12-month low of $255.32 and a 12-month high of $405.67. The stock has a market cap of $8.63 billion, a price-to-earnings ratio of 9.97, a PEG ratio of 0.52 and a beta of 1.30. 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 (NYSE:LAD - Get Free Report) last announced its quarterly earnings results on Tuesday, July 29th. The company reported $10.24 earnings per share for the quarter, beating the consensus estimate of $9.78 by $0.46. The company had revenue of $9.58 billion during the quarter, compared to the consensus estimate of $9.56 billion. Lithia Motors had a net margin of 2.39% and a return on equity of 13.21%. On average, analysts expect that Lithia Motors, Inc. will post 34.45 EPS for the current year.

Lithia Motors Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, August 22nd. Investors 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 0.7%. Lithia Motors's dividend payout ratio (DPR) is 6.52%.

Lithia Motors announced that its Board of Directors has authorized a stock buyback 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 leadership believes its shares are undervalued.

Insider Buying and Selling at Lithia Motors

In related news, Director Shauna Mcintyre sold 256 shares of the firm's stock in a transaction that occurred on Thursday, July 31st. The shares were 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 of the company's stock, valued at $403,236.80. This trade represents a 15.69% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.87% of the stock is owned by company insiders.

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.