Independent Advisor Alliance Takes Position in Lithia Motors, Inc. $LAD

Key Points

• Independent Advisor Alliance opened a new position in Lithia Motors during the fourth quarter, buying 5,042 shares valued at about $1.68 million.
• Lithia Motors reported better-than-expected quarterly results, posting EPS of $7.34 versus estimates of $7.06 and revenue of $9.27 billion, while revenue also rose 1% year over year.
• The company raised its quarterly dividend to $0.57 per share from $0.55, and analysts currently rate the stock a Moderate Buy with an average price target of $367.22.

Independent Advisor Alliance purchased a new stake in shares of Lithia Motors, Inc. (NYSE:LAD - Free Report) during the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor purchased 5,042 shares of the company's stock, valued at approximately $1,676,000.

Several other large investors have also made changes to their positions in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in Lithia Motors by 13.9% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 8,474 shares of the company's stock valued at $2,487,000 after purchasing an additional 1,032 shares during the last quarter. Goldman Sachs Group Inc. increased its holdings in Lithia Motors by 67.6% in the first quarter. Goldman Sachs Group Inc. now owns 113,346 shares of the company's stock valued at $33,272,000 after purchasing an additional 45,716 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in Lithia Motors by 16.8% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 93,170 shares of the company's stock valued at $27,349,000 after purchasing an additional 13,407 shares during the last quarter. Federated Hermes Inc. increased its holdings in Lithia Motors by 16.2% in the second quarter. Federated Hermes Inc. now owns 2,430 shares of the company's stock valued at $821,000 after purchasing an additional 338 shares during the last quarter. Finally, WINTON GROUP Ltd bought a new stake in Lithia Motors in the second quarter valued at about $651,000.

Lithia Motors Stock Up 0.6%

NYSE:LAD opened at $274.80 on Friday. The company has a debt-to-equity ratio of 1.41, a quick ratio of 0.24 and a current ratio of 0.99. The company has a market cap of $6.27 billion, a PE ratio of 9.65, a PEG ratio of 0.60 and a beta of 1.28. Lithia Motors, Inc. has a 52-week low of $239.78 and a 52-week high of $360.55. The stock has a 50-day simple moving average of $267.63 and a 200 day simple moving average of $300.91.

Lithia Motors (NYSE:LAD - Get Free Report) last posted its quarterly earnings data on Wednesday, April 29th. The company reported $7.34 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $7.06 by $0.28. The business had revenue of $9.27 billion during the quarter, compared to the consensus estimate of $9.22 billion. Lithia Motors had a return on equity of 12.49% and a net margin of 1.88%.Lithia Motors's quarterly revenue was up 1.0% on a year-over-year basis. During the same period last year, the company earned $7.66 earnings per share. On average, sell-side analysts expect that Lithia Motors, Inc. will post 34.44 EPS for the current fiscal year.

Lithia Motors Increases Dividend

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

Analysts Set New Price Targets

LAD has been the subject of a number of recent analyst reports. Wells Fargo & Company upped their price objective on Lithia Motors from $293.00 to $305.00 and gave the company an "equal weight" rating in a report on Thursday, April 30th. Zacks Research upgraded Lithia Motors from a "strong sell" rating to a "hold" rating in a report on Thursday, April 23rd. Citigroup upped their price objective on Lithia Motors from $326.00 to $365.00 and gave the company a "buy" rating in a report on Friday, May 1st. Weiss Ratings downgraded Lithia Motors from a "hold (c)" rating to a "hold (c-)" rating in a report on Monday, May 4th. Finally, Barclays dropped their price objective on Lithia Motors from $380.00 to $370.00 and set an "overweight" rating for the company in a report on Tuesday, April 7th. Six analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $367.22.

Insider Activity

In related news, Director Shauna Mcintyre sold 245 shares of the stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $294.64, for a total transaction of $72,186.80. Following the completion of the transaction, the director directly owned 1,846 shares in the company, valued at approximately $543,905.44. This trade represents a 11.72% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 1.08% of the company's stock.

Lithia Motors Company 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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