Empowered Funds LLC Buys 25,480 Shares of Lithia Motors, Inc. $LAD

Key Points

• Empowered Funds LLC significantly increased its stake in Lithia Motors, acquiring an additional 25,480 shares to bring total holdings to approximately $7.68 million.
• Lithia Motors recently reported an EPS of $10.24 for the quarter, exceeding the consensus estimate by $0.46 and had a revenue of $9.58 billion.
• The company announced a $750 million stock buyback plan and a quarterly dividend of $0.55, indicating confidence in its stock valuation.

Empowered Funds LLC boosted its holdings in Lithia Motors, Inc. (NYSE:LAD - Free Report) by 3,682.1% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 26,172 shares of the company's stock after purchasing an additional 25,480 shares during the quarter. Empowered Funds LLC owned about 0.10% of Lithia Motors worth $7,683,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Coppell Advisory Solutions LLC lifted its stake in shares of Lithia Motors by 10,136,710.0% in the first quarter. Coppell Advisory Solutions LLC now owns 2,027,362 shares of the company's stock valued at $595,112,000 after buying an additional 2,027,342 shares in the last quarter. Steadfast Capital Management LP lifted its position in Lithia Motors by 137.8% in the 4th quarter. Steadfast Capital Management LP now owns 460,298 shares of the company's stock valued at $164,524,000 after acquiring an additional 266,715 shares in the last quarter. Park West Asset Management LLC acquired a new position in Lithia Motors during the 1st quarter valued at about $58,825,000. Millennium Management LLC increased its holdings in Lithia Motors by 1,840.6% during the 1st quarter. Millennium Management LLC now owns 181,777 shares of the company's stock worth $53,359,000 after purchasing an additional 172,410 shares in the last quarter. Finally, Assenagon Asset Management S.A. purchased a new stake in shares of Lithia Motors in the first quarter worth approximately $36,762,000.

Analyst Ratings Changes

Several research analysts recently issued reports on LAD shares. Jefferies Financial Group initiated coverage on Lithia Motors in a research report on Thursday, September 4th. They set a "buy" rating and a $400.00 target price on the stock. Wells Fargo & Company cut their price objective 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. The Goldman Sachs Group started coverage on shares of Lithia Motors in a report on Tuesday, June 3rd. They issued a "neutral" rating and a $340.00 target price for the company. Citigroup increased their price objective on shares of Lithia Motors from $378.00 to $383.00 and gave the company a "buy" rating in a research note on Tuesday, August 5th. Finally, Bank of America dropped their target price on shares of Lithia Motors from $500.00 to $385.00 and set a "buy" rating on the stock in a research report on Wednesday. Eight equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $370.45.

Lithia Motors Stock Performance

LAD traded down $9.66 during trading hours on Friday, hitting $334.34. The stock had a trading volume of 234,700 shares, compared to its average volume of 287,090. The company's fifty day simple moving average is $319.94 and its 200 day simple moving average is $313.53. Lithia Motors, Inc. has a 1 year low of $262.10 and a 1 year high of $405.67. The stock has a market cap of $8.57 billion, a PE ratio of 9.91, a price-to-earnings-growth ratio of 0.70 and a beta of 1.31. 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 posted its earnings results 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 net margin of 2.39% and a return on equity of 13.21%. The firm had revenue of $9.58 billion during the quarter, compared to the consensus estimate of $9.56 billion. Equities analysts anticipate that Lithia Motors, Inc. will post 34.45 earnings per share for the current year.

Lithia Motors Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, August 22nd. Shareholders of record on Friday, August 8th were given 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 0.7%. Lithia Motors's dividend payout ratio (DPR) is presently 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 purchase up to 9% of its shares through open market purchases. Shares buyback plans are usually an indication that the company's management believes its stock is undervalued.

Insider Transactions at Lithia Motors

In other news, Director Shauna Mcintyre sold 256 shares of the company'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 completion of the sale, the director owned 1,376 shares of the company's stock, valued at approximately $403,236.80. This represents 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 currently owned by corporate 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.