Intech Investment Management LLC Increases Stock Position in Lithia Motors, Inc. $LAD

Key Points

• Intech Investment Management LLC boosted its stake in Lithia Motors by 140.7% in the fourth quarter, ending with 11,396 shares valued at about $3.79 million.
• Lithia Motors reported better-than-expected quarterly earnings, posting $7.34 EPS versus $7.06 expected, on revenue of $9.27 billion, while also raising its quarterly dividend to $0.57 per share.
• The company authorized a $500 million share repurchase program, and analysts remain generally constructive with a consensus rating of “Moderate Buy” and an average price target of $365.30.

Intech Investment Management LLC raised its position in shares of Lithia Motors, Inc. (NYSE:LAD - Free Report) by 140.7% in the 4th quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 11,396 shares of the company's stock after buying an additional 6,661 shares during the period. Intech Investment Management LLC's holdings in Lithia Motors were worth $3,787,000 at the end of the most recent reporting period.

Other institutional investors have also added to or reduced their stakes in the company. Northwestern Mutual Wealth Management Co. raised its holdings in Lithia Motors by 1,062.8% in the 4th 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 in the last quarter. Abrams Capital Management L.P. increased its stake in shares of Lithia Motors by 1.9% in the 3rd quarter. Abrams Capital Management L.P. now owns 2,490,534 shares of the company's stock worth $787,009,000 after acquiring an additional 45,856 shares in the last quarter. Bridges Investment Management Inc. increased its stake in shares of Lithia Motors by 3.0% in the 3rd quarter. Bridges Investment Management Inc. now owns 263,157 shares of the company's stock worth $83,158,000 after acquiring an additional 7,558 shares in the last quarter. Life Cycle Investment Partners Ltd bought a new position in shares of Lithia Motors in the 4th quarter worth about $58,409,000. Finally, Natixis Advisors LLC increased its stake in shares of Lithia Motors by 12.9% in the 3rd quarter. Natixis Advisors LLC now owns 142,276 shares of the company's stock worth $44,959,000 after acquiring an additional 16,226 shares in the last quarter.

Lithia Motors Stock Performance

Shares of NYSE LAD opened at $293.54 on Tuesday. The firm's 50-day moving average price is $272.31 and its 200-day moving average price is $298.60. 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 company has a market cap of $6.70 billion, a PE ratio of 10.31, a PEG ratio of 0.64 and a beta of 1.26. Lithia Motors, Inc. has a 52-week low of $239.78 and a 52-week high of $360.55.

Lithia Motors (NYSE:LAD - Get Free Report) last announced its quarterly earnings results on Wednesday, April 29th. The company reported $7.34 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $7.06 by $0.28. The firm had revenue of $9.27 billion for the quarter, compared to the consensus estimate of $9.22 billion. Lithia Motors had a net margin of 1.88% and a return on equity of 12.49%. The business's quarterly revenue was up 1.0% compared to the same quarter last year. During the same quarter last year, the firm posted $7.66 EPS. As a group, analysts anticipate that Lithia Motors, Inc. will post 34.26 EPS for the current year.

Lithia Motors Increases Dividend

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

Lithia Motors declared that its board has initiated a share repurchase program on Tuesday, May 26th that allows the company to repurchase $500.00 million in outstanding shares. This repurchase authorization allows the company to buy up to 7.9% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company's management believes its stock is undervalued.

Analyst Upgrades and Downgrades

Several research analysts recently issued reports on the stock. Zacks Research upgraded shares of Lithia Motors from a "strong sell" rating to a "hold" rating in a research note on Thursday, April 23rd. UBS Group assumed coverage on shares of Lithia Motors in a research note on Wednesday, May 27th. They issued a "buy" rating and a $348.00 price target for the company. Bank of America decreased their price target on shares of Lithia Motors from $335.00 to $320.00 in a research note on Monday, April 13th. Weiss Ratings lowered shares of Lithia Motors from a "hold (c)" rating to a "hold (c-)" rating in a research note on Monday, May 4th. Finally, Citigroup increased their price target on shares of Lithia Motors from $326.00 to $365.00 and gave the stock a "buy" rating in a research note on Friday, May 1st. Seven research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $365.30.

Insider Transactions at Lithia Motors

In other news, Director Shauna Mcintyre sold 245 shares of the firm's stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $294.64, for a total transaction of $72,186.80. Following the sale, the director owned 1,846 shares of the company's stock, valued at $543,905.44. This trade represents a 11.72% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Richard J. Bailey, Jr. sold 297 shares of the firm'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 directly owned 760 shares in the company, valued at approximately $213,233.20. The trade was a 28.10% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 617 shares of company stock worth $174,966. 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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