Jones Financial Companies Lllp Boosts Stock Position in Lithia Motors, Inc. $LAD

Key Points

• Jones Financial Companies Lllp significantly increased its stake in Lithia Motors, Inc. by 1,763.6% during the first quarter, acquiring 12,292 additional shares.
• The board of Lithia Motors has authorized a $750 million share repurchase plan, signaling confidence in the company's stock value.
• Lithia Motors reported earnings of $10.24 per share, exceeding analysts' expectations, and generated revenues of $9.58 billion, beating the estimated $9.56 billion.

Jones Financial Companies Lllp increased its stake in Lithia Motors, Inc. (NYSE:LAD - Free Report) by 1,763.6% in the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 12,989 shares of the company's stock after buying an additional 12,292 shares during the quarter. Jones Financial Companies Lllp's holdings in Lithia Motors were worth $3,813,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also made changes to their positions in the company. Wealth Enhancement Advisory Services LLC lifted its position in shares of Lithia Motors by 118.1% during the first quarter. Wealth Enhancement Advisory Services LLC now owns 1,841 shares of the company's stock worth $541,000 after purchasing an additional 997 shares during the last quarter. Cambridge Investment Research Advisors Inc. lifted its position in shares of Lithia Motors by 1.5% during the first quarter. Cambridge Investment Research Advisors Inc. now owns 2,421 shares of the company's stock worth $711,000 after purchasing an additional 35 shares during the last quarter. Vident Advisory LLC lifted its position in shares of Lithia Motors by 4.3% during the fourth quarter. Vident Advisory LLC now owns 780 shares of the company's stock worth $279,000 after purchasing an additional 32 shares during the last quarter. GAMMA Investing LLC lifted its position in shares of Lithia Motors by 50.9% during the first quarter. GAMMA Investing LLC now owns 252 shares of the company's stock worth $74,000 after purchasing an additional 85 shares during the last quarter. Finally, Invesco Ltd. lifted its position in shares of Lithia Motors by 4.4% during the first quarter. Invesco Ltd. now owns 119,466 shares of the company's stock worth $35,068,000 after purchasing an additional 5,005 shares during the last quarter.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on LAD. Jefferies Financial Group began coverage on Lithia Motors in a research report on Thursday, September 4th. They set a "buy" rating and a $400.00 target price for the company. Bank of America cut their price target on Lithia Motors from $500.00 to $385.00 and set a "buy" rating on the stock in a research note on Wednesday, September 10th. The Goldman Sachs Group began coverage on Lithia Motors in a research note on Tuesday, June 3rd. They issued a "neutral" rating and a $340.00 target price on the stock. Wells Fargo & Company lowered their price target on Lithia Motors from $364.00 to $317.00 and set an "equal weight" rating for the company in a report on Wednesday, July 30th. Finally, Citigroup raised their price target on Lithia Motors from $378.00 to $383.00 and gave the stock a "buy" rating in a report on Tuesday, August 5th. Eight equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $370.45.

Insider Transactions at Lithia Motors

In other Lithia Motors news, Director Shauna Mcintyre sold 256 shares of the business's stock in a transaction that occurred on Thursday, July 31st. The stock was sold at an average price of $293.05, for a total value of $75,020.80. Following the completion of the transaction, the director directly owned 1,376 shares of the company's stock, valued at approximately $403,236.80. The trade was a 15.69% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Insiders own 0.87% of the company's stock.

Lithia Motors Stock Performance

Shares of Lithia Motors stock traded up $2.30 on Tuesday, reaching $332.60. 188,377 shares of the stock were exchanged, compared to its average volume of 278,846. 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, Inc. has a twelve month low of $262.10 and a twelve month high of $405.67. The firm has a market capitalization of $8.53 billion, a price-to-earnings ratio of 9.86, a PEG ratio of 0.67 and a beta of 1.31. The business has a 50 day moving average price of $319.37 and a two-hundred day moving average price of $313.35.

Lithia Motors (NYSE:LAD - Get Free Report) last announced its quarterly earnings results on Tuesday, July 29th. The company reported $10.24 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $9.78 by $0.46. Lithia Motors had a return on equity of 13.21% and a net margin of 2.39%.The company had revenue of $9.58 billion during the quarter, compared to the consensus estimate of $9.56 billion. Analysts anticipate that Lithia Motors, Inc. will post 34.45 earnings per share for the current fiscal year.

Lithia Motors Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, August 22nd. Shareholders of record on Friday, August 8th were issued a $0.55 dividend. The ex-dividend date of this dividend was Friday, August 8th. This represents a $2.20 dividend on an annualized basis and a yield of 0.7%. Lithia Motors's payout ratio is presently 6.52%.

Lithia Motors declared that its Board of Directors has initiated a share buyback plan on Tuesday, August 26th that authorizes the company to repurchase $750.00 million in shares. This repurchase authorization authorizes the company to purchase up to 9% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company's management believes its stock is undervalued.

Lithia Motors Company Profile

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.