Jump Financial LLC Buys New Position in Lithia Motors, Inc. $LAD

Key Points

• Jump Financial LLC has acquired a new position in Lithia Motors, purchasing 24,005 shares valued at approximately $7,046,000, giving it a total ownership of about 0.09% of the company.
• Several other large investors have also increased their stakes in Lithia Motors, including Wealth Enhancement Advisory Services LLC, which raised its shareholding by 118.1% during the same quarter.
• Analyst reports show differing perspectives on Lithia Motors, with Bank of America raising their price target to $500 while other firms like JPMorgan and Wells Fargo have adjusted their targets downward.

Jump Financial LLC purchased a new stake in Lithia Motors, Inc. (NYSE:LAD - Free Report) during the 1st quarter, according to the company in its most recent disclosure with the SEC. The institutional investor purchased 24,005 shares of the company's stock, valued at approximately $7,046,000. Jump Financial LLC owned about 0.09% of Lithia Motors as of its most recent SEC filing.

Several other large investors have also modified their holdings of the business. NBC Securities Inc. purchased a new stake in shares of Lithia Motors in the 1st quarter valued at $59,000. UMB Bank n.a. raised its holdings in shares of Lithia Motors by 63.7% in the 1st quarter. UMB Bank n.a. now owns 203 shares of the company's stock valued at $60,000 after buying an additional 79 shares during the period. CWM LLC raised its holdings in shares of Lithia Motors by 30.1% in the 1st quarter. CWM LLC now owns 212 shares of the company's stock valued at $62,000 after buying an additional 49 shares during the period. GAMMA Investing LLC raised its holdings in shares of Lithia Motors by 50.9% in the 1st quarter. GAMMA Investing LLC now owns 252 shares of the company's stock valued at $74,000 after buying an additional 85 shares during the period. Finally, Caitong International Asset Management Co. Ltd purchased a new stake in shares of Lithia Motors in the 1st quarter valued at $143,000.

Wall Street Analyst Weigh In

LAD has been the topic of several research analyst reports. Guggenheim cut their price objective on Lithia Motors from $383.00 to $380.00 and set a "buy" rating on the stock in a report on Monday, August 11th. The Goldman Sachs Group started coverage on Lithia Motors in a report on Tuesday, June 3rd. They issued a "neutral" rating and a $340.00 price objective on the stock. Wells Fargo & Company cut their price target on Lithia Motors from $364.00 to $317.00 and set an "equal weight" rating on the stock in a report on Wednesday, July 30th. JPMorgan Chase & Co. cut their price target on Lithia Motors from $335.00 to $315.00 and set an "overweight" rating on the stock in a report on Tuesday, August 5th. Finally, Bank of America upped their price target on Lithia Motors from $430.00 to $500.00 and gave the stock a "buy" rating in a report on Monday, June 16th. Seven equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $379.00.

Lithia Motors Stock Down 0.4%

Shares of LAD traded down $1.21 during mid-day trading on Thursday, reaching $338.77. The company's stock had a trading volume of 318,262 shares, compared to its average volume of 339,089. Lithia Motors, Inc. has a 12-month low of $255.32 and a 12-month high of $405.67. The stock has a market cap of $8.69 billion, a PE ratio of 10.04, a price-to-earnings-growth ratio of 0.51 and a beta of 1.30. The company has a debt-to-equity ratio of 1.24, a current ratio of 1.22 and a quick ratio of 0.29. The company's 50 day moving average is $320.21 and its 200 day moving average is $316.20.

Lithia Motors (NYSE:LAD - Get Free Report) last released 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 business had revenue of $9.58 billion for the quarter, compared to the consensus estimate of $9.56 billion. Equities analysts anticipate that Lithia Motors, Inc. will post 34.45 EPS for the current fiscal year.

Lithia Motors Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 22nd. Stockholders of record on Friday, August 8th were issued a $0.55 dividend. The ex-dividend date was Friday, August 8th. This represents a $2.20 dividend on an annualized basis and a dividend yield of 0.6%. Lithia Motors's dividend payout ratio is presently 6.52%.

Lithia Motors announced that its Board of Directors has initiated a share repurchase plan on Tuesday, August 26th that permits the company to repurchase $750.00 million in shares. This repurchase authorization permits the company to repurchase up to 9% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's leadership believes its shares are undervalued.

Insider Activity at Lithia Motors

In related news, Director Shauna Mcintyre sold 256 shares of the company's stock in a transaction dated 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 sale, the director directly owned 1,376 shares of the company's stock, valued at $403,236.80. This represents a 15.69% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 0.87% of the company's stock.

Lithia Motors 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.