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

A number of other hedge funds and other institutional investors have also modified their holdings of LAD. Abrams Capital Management L.P. increased its position in shares of Lithia Motors by 2.2% during the 1st quarter. Abrams Capital Management L.P. now owns 2,444,678 shares of the company's stock worth $717,611,000 after purchasing an additional 53,490 shares during the last quarter. Dimensional Fund Advisors LP raised its position in Lithia Motors by 6.1% during the first quarter. Dimensional Fund Advisors LP now owns 1,267,519 shares of the company's stock worth $372,053,000 after acquiring an additional 72,980 shares in the last quarter. Steadfast Capital Management LP increased its stake in shares of Lithia Motors by 137.8% during the 4th quarter. Steadfast Capital Management LP now owns 460,298 shares of the company's stock worth $164,524,000 after purchasing an additional 266,715 shares during the last quarter. Hotchkis & Wiley Capital Management LLC increased its position in Lithia Motors by 8.8% during the first quarter. Hotchkis & Wiley Capital Management LLC now owns 376,467 shares of the company's stock worth $110,508,000 after buying an additional 30,420 shares during the last quarter. Finally, Advent International L.P. lifted its position in shares of Lithia Motors by 32.1% in the first quarter. Advent International L.P. now owns 286,786 shares of the company's stock valued at $84,183,000 after buying an additional 69,635 shares during the last quarter.

Insider Activity

In other news, Director Shauna Mcintyre sold 256 shares of the firm's stock in a transaction on Thursday, July 31st. The stock was sold at an average price of $293.05, for a total transaction of $75,020.80. Following the completion of the sale, the director directly owned 1,376 shares of the company's stock, valued at $403,236.80. This trade represents a 15.69% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. 0.87% of the stock is currently owned by corporate insiders.

Lithia Motors Trading Down 2.8%

Shares of Lithia Motors stock traded down $9.66 on Friday, reaching $334.34. 234,700 shares of the company's stock were exchanged, compared to its average volume of 287,090. The firm's 50-day moving average is $319.94 and its two-hundred day moving average is $313.53. The company has a market capitalization of $8.57 billion, a P/E ratio of 9.91, a price-to-earnings-growth ratio of 0.70 and a beta of 1.31. The company has a debt-to-equity ratio of 1.24, a quick ratio of 0.29 and a current ratio of 1.22. Lithia Motors, Inc. has a 52 week low of $262.10 and a 52 week high of $405.67.

Lithia Motors (NYSE:LAD - Get Free Report) last announced its quarterly earnings data on Tuesday, July 29th. The company reported $10.24 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 firm had revenue of $9.58 billion during the quarter, compared to analysts' expectations of $9.56 billion. Sell-side analysts predict that Lithia Motors, Inc. will post 34.45 EPS for the current fiscal year.

Lithia Motors declared that its board has authorized a stock buyback plan on Tuesday, August 26th that authorizes the company to buyback $750.00 million in shares. This buyback authorization authorizes the company to reacquire up to 9% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's board believes its shares are undervalued.

Lithia Motors Announces Dividend

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

Analyst Ratings Changes

A number of research analysts recently commented on LAD shares. Wells Fargo & Company decreased their price target on shares of Lithia Motors from $364.00 to $317.00 and set an "equal weight" rating on the stock in a research note on Wednesday, July 30th. Bank of America reduced their price target on Lithia Motors from $500.00 to $385.00 and set a "buy" rating for the company in a research note on Wednesday. JPMorgan Chase & Co. lowered their price objective on Lithia Motors from $335.00 to $315.00 and set an "overweight" rating on the stock in a research report on Tuesday, August 5th. Citigroup upped their price target on shares of Lithia Motors from $378.00 to $383.00 and gave the company a "buy" rating in a research note on Tuesday, August 5th. Finally, The Goldman Sachs Group began coverage on shares of Lithia Motors in a research note on Tuesday, June 3rd. They issued a "neutral" rating and a $340.00 price objective for the company. Eight equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, Lithia Motors presently has an average rating of "Moderate Buy" and an average target price of $370.45.

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.