Geode Capital Management LLC Decreases Stock Position in Lithia Motors, Inc. $LAD

Key Points

• Geode Capital Management reduced its Lithia Motors stake by 3.9% in the fourth quarter, though it still held 467,787 shares valued at about $155.5 million.
• Lithia Motors reported better-than-expected first-quarter results, with EPS of $7.34 versus estimates of $7.06 and revenue of $9.27 billion, slightly above forecasts.
• The company recently raised its quarterly dividend to $0.57 per share and authorized a $500 million share buyback, signaling confidence in its stock value.

Geode Capital Management LLC lowered its stake in Lithia Motors, Inc. (NYSE:LAD - Free Report) by 3.9% during the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 467,787 shares of the company's stock after selling 19,016 shares during the period. Geode Capital Management LLC owned approximately 1.93% of Lithia Motors worth $155,489,000 as of its most recent SEC filing.

Other large investors also recently modified their holdings of the company. Northwestern Mutual Wealth Management Co. grew its stake in shares of Lithia Motors by 1,062.8% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 11,070 shares of the company's stock worth $3,679,000 after purchasing an additional 10,118 shares during the last quarter. Abrams Capital Management L.P. grew its stake in shares of Lithia Motors by 1.9% in the third quarter. Abrams Capital Management L.P. now owns 2,490,534 shares of the company's stock worth $787,009,000 after purchasing an additional 45,856 shares during the last quarter. Tabor Asset Management LP bought a new stake in shares of Lithia Motors in the third quarter worth about $1,722,000. Life Cycle Investment Partners Ltd bought a new stake in shares of Lithia Motors in the fourth quarter worth about $58,409,000. Finally, Natixis Advisors LLC grew its stake in shares of Lithia Motors by 12.9% in the third quarter. Natixis Advisors LLC now owns 142,276 shares of the company's stock worth $44,959,000 after purchasing an additional 16,226 shares during the last quarter.

Analyst Ratings Changes

Several analysts recently issued reports on the company. Weiss Ratings cut Lithia Motors from a "hold (c)" rating to a "hold (c-)" rating in a research note on Monday, May 4th. Wall Street Zen raised Lithia Motors from a "sell" rating to a "hold" rating in a research report on Saturday, May 30th. UBS Group began coverage on Lithia Motors in a research report on Wednesday, May 27th. They set a "buy" rating and a $348.00 price objective on the stock. Wells Fargo & Company lifted their price objective on Lithia Motors from $293.00 to $305.00 and gave the company an "equal weight" rating in a research report on Thursday, April 30th. Finally, JPMorgan Chase & Co. lifted their price objective on Lithia Motors from $320.00 to $325.00 and gave the company a "neutral" rating in a research report on Thursday, May 7th. Seven research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $368.11.

Lithia Motors Stock Performance

Shares of LAD opened at $290.95 on Thursday. The company has a quick ratio of 0.24, a current ratio of 0.99 and a debt-to-equity ratio of 1.41. The business's 50 day moving average price is $274.13 and its 200-day moving average price is $298.51. Lithia Motors, Inc. has a 52 week low of $239.78 and a 52 week high of $360.55. The stock has a market cap of $6.64 billion, a P/E ratio of 10.22, a P/E/G ratio of 0.65 and a beta of 1.26.

Lithia Motors (NYSE:LAD - Get Free Report) last issued its quarterly earnings results on Wednesday, April 29th. The company reported $7.34 EPS for the quarter, topping analysts' consensus estimates of $7.06 by $0.28. Lithia Motors had a return on equity of 12.49% and a net margin of 1.88%.The firm had revenue of $9.27 billion for the quarter, compared to analysts' expectations of $9.22 billion. During the same period in the previous year, the firm posted $7.66 EPS. The business's revenue for the quarter was up 1.0% compared to the same quarter last year. Equities research analysts anticipate that Lithia Motors, Inc. will post 34.37 earnings per share for the current fiscal year.

Lithia Motors Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, May 22nd. Investors of record on Friday, May 8th were issued a $0.57 dividend. This represents a $2.28 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date was Friday, May 8th. This is an increase from Lithia Motors's previous quarterly dividend of $0.55. Lithia Motors's dividend payout ratio (DPR) is presently 8.01%.

Lithia Motors announced that its Board of Directors has authorized a share repurchase plan on Tuesday, May 26th that authorizes the company to buyback $500.00 million in shares. This buyback authorization authorizes the company to purchase up to 7.9% of its stock through open market purchases. Stock buyback plans are often an indication that the company's management believes its shares are undervalued.

Insider Buying and Selling

In related news, Director Shauna Mcintyre sold 245 shares of the business's stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $294.64, for a total value of $72,186.80. Following the completion of the transaction, the director directly owned 1,846 shares in the company, valued at $543,905.44. The trade was a 11.72% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Richard J. Bailey, Jr. sold 297 shares of the business's stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $280.57, for a total transaction of $83,329.29. Following the completion of the transaction, the director owned 760 shares of the company's stock, valued at approximately $213,233.20. The trade was a 28.10% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 617 shares of company stock valued at $174,966. 1.08% of the stock is owned by company insiders.

Lithia Motors Profile

Lithia Motors, Inc is an American automotive retailer headquartered in Medford, Oregon. Founded in 1946 as a small auto body and glass shop, the company has grown through organic expansion and strategic acquisitions to become one of the largest automotive retail networks in North America. Lithia operates dealerships across the United States and Canada, offering a broad portfolio of new and pre-owned vehicles from more than 40 different manufacturers.

The company's core business activities include vehicle sales, financing, insurance, parts and service.

Want to see what other hedge funds are holding LAD? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Lithia Motors, Inc. (NYSE:LAD - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.