Hennessy Advisors Inc. Decreases Stock Holdings in Lithia Motors, Inc. $LAD

Key Points

• Hennessy Advisors trimmed its stake in Lithia Motors by 5.3% in Q4, selling 6,600 shares and leaving it with 117,900 shares worth about $39.18M (0.49% of the company and 1.4% of Hennessy’s portfolio).
• Lithia missed quarterly EPS ($6.74 vs. $8.09 expected) while reporting revenue roughly in line at $9.20B; the stock trades at a low P/E of 8.8 with a market cap of ~$6.61B.
• The company recently paid a $0.55 quarterly dividend (annualized $2.20, ~0.8% yield) and faces a mixed analyst backdrop—average rating is "Hold" with an average price target near $361 amid several recent target cuts.

Hennessy Advisors Inc. lowered its stake in shares of Lithia Motors, Inc. (NYSE:LAD - Free Report) by 5.3% during the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 117,900 shares of the company's stock after selling 6,600 shares during the period. Lithia Motors comprises 1.4% of Hennessy Advisors Inc.'s portfolio, making the stock its 19th largest holding. Hennessy Advisors Inc. owned 0.49% of Lithia Motors worth $39,182,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds and other institutional investors have also recently bought and sold shares of the company. AGP Franklin LLC raised its holdings in Lithia Motors by 0.3% during the third quarter. AGP Franklin LLC now owns 10,459 shares of the company's stock worth $3,305,000 after purchasing an additional 34 shares during the last quarter. Arizona State Retirement System raised its holdings in Lithia Motors by 0.4% during the third quarter. Arizona State Retirement System now owns 7,702 shares of the company's stock worth $2,434,000 after purchasing an additional 34 shares during the last quarter. GAMMA Investing LLC raised its holdings in Lithia Motors by 9.2% during the fourth quarter. GAMMA Investing LLC now owns 403 shares of the company's stock worth $134,000 after purchasing an additional 34 shares during the last quarter. Vident Advisory LLC raised its holdings in Lithia Motors by 4.6% during the second quarter. Vident Advisory LLC now owns 842 shares of the company's stock worth $285,000 after purchasing an additional 37 shares during the last quarter. Finally, First Citizens Bank & Trust Co. increased its holdings in Lithia Motors by 1.4% during the 3rd quarter. First Citizens Bank & Trust Co. now owns 3,011 shares of the company's stock valued at $951,000 after acquiring an additional 41 shares in the last quarter.

Lithia Motors Price Performance

NYSE:LAD opened at $282.80 on Monday. The firm has a market cap of $6.61 billion, a price-to-earnings ratio of 8.80, a price-to-earnings-growth ratio of 0.67 and a beta of 1.22. The company has a current ratio of 1.17, a quick ratio of 0.26 and a debt-to-equity ratio of 1.46. The company's 50-day moving average is $272.31 and its two-hundred day moving average is $304.33. Lithia Motors, Inc. has a 12-month low of $239.78 and a 12-month high of $360.55.

Lithia Motors (NYSE:LAD - Get Free Report) last issued its quarterly earnings results on Wednesday, February 11th. The company reported $6.74 earnings per share for the quarter, missing the consensus estimate of $8.09 by ($1.35). The business had revenue of $9.20 billion during the quarter, compared to analyst estimates of $9.19 billion. Lithia Motors had a net margin of 2.18% and a return on equity of 12.76%. The company's revenue was up .3% on a year-over-year basis. During the same quarter last year, the firm posted $7.79 earnings per share. Research analysts expect that Lithia Motors, Inc. will post 34.45 EPS for the current year.

Lithia Motors Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, March 20th. Shareholders of record on Friday, March 6th were issued a $0.55 dividend. The ex-dividend date was Friday, March 6th. This represents a $2.20 annualized dividend and a yield of 0.8%. Lithia Motors's payout ratio is 6.85%.

Wall Street Analysts Forecast Growth

LAD has been the subject of several recent research reports. Wells Fargo & Company dropped their target price on shares of Lithia Motors from $355.00 to $293.00 and set an "equal weight" rating for the company in a report on Monday, April 13th. Wall Street Zen downgraded shares of Lithia Motors from a "hold" rating to a "sell" rating in a report on Saturday, February 28th. Barclays dropped their target price on shares of Lithia Motors from $380.00 to $370.00 and set an "overweight" rating for the company in a report on Tuesday, April 7th. Weiss Ratings reiterated a "hold (c+)" rating on shares of Lithia Motors in a report on Thursday, January 22nd. Finally, Citigroup lowered their target price on Lithia Motors from $366.00 to $326.00 and set a "buy" rating on the stock in a report on Wednesday, April 8th. Six analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company has an average rating of "Hold" and an average price target of $361.00.

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.

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