Lithia Motors, Inc. $LAD Shares Acquired by Bridges Investment Management Inc.

Key Points

• Bridges Investment Management boosted its Lithia Motors stake by 8.0% in the fourth quarter, holding 284,325 shares worth about $94.5 million and making LAD its 24th largest position.
• Lithia Motors reported strong quarterly results, with EPS of $7.34 beating estimates and revenue of $9.27 billion slightly above expectations, while analysts see about $34.37 EPS for the full year.
• The company raised its dividend to $0.57 per share and authorized a $500 million share repurchase program, which covers up to 7.9% of outstanding shares.

Bridges Investment Management Inc. increased its stake in shares of Lithia Motors, Inc. (NYSE:LAD - Free Report) by 8.0% in the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 284,325 shares of the company's stock after purchasing an additional 21,168 shares during the quarter. Lithia Motors accounts for approximately 1.2% of Bridges Investment Management Inc.'s holdings, making the stock its 24th biggest position. Bridges Investment Management Inc. owned approximately 1.17% of Lithia Motors worth $94,490,000 at the end of the most recent reporting period.

Several other hedge funds have also recently modified their holdings of the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in Lithia Motors by 13.9% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 8,474 shares of the company's stock worth $2,487,000 after acquiring an additional 1,032 shares during the period. Goldman Sachs Group Inc. grew its holdings in Lithia Motors by 67.6% during the first quarter. Goldman Sachs Group Inc. now owns 113,346 shares of the company's stock worth $33,272,000 after acquiring an additional 45,716 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in Lithia Motors by 16.8% during 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 worth $27,349,000 after acquiring an additional 13,407 shares during the period. Federated Hermes Inc. grew its holdings in Lithia Motors by 16.2% during the second quarter. Federated Hermes Inc. now owns 2,430 shares of the company's stock worth $821,000 after acquiring an additional 338 shares during the period. Finally, WINTON GROUP Ltd acquired a new position in Lithia Motors during the second quarter worth $651,000.

Lithia Motors Stock Up 0.7%

Shares of LAD opened at $295.71 on Wednesday. The firm has a market cap of $6.75 billion, a PE ratio of 10.38, a price-to-earnings-growth ratio of 0.65 and a beta of 1.26. The company's fifty day moving average is $272.31 and its two-hundred day moving average is $298.60. Lithia Motors, Inc. has a fifty-two week low of $239.78 and a fifty-two week high of $360.55. The company has a quick ratio of 0.24, a current ratio of 0.99 and a debt-to-equity ratio of 1.41.

Lithia Motors (NYSE:LAD - Get Free Report) last released its quarterly earnings data on Wednesday, April 29th. The company reported $7.34 earnings per share (EPS) for the quarter, topping the consensus estimate of $7.06 by $0.28. Lithia Motors had a net margin of 1.88% and a return on equity of 12.49%. The company had revenue of $9.27 billion during the quarter, compared to analyst estimates of $9.22 billion. During the same quarter in the prior year, the business earned $7.66 earnings per share. The business's quarterly revenue was up 1.0% compared to the same quarter last year. Analysts forecast that Lithia Motors, Inc. will post 34.37 earnings per share for the current year.

Lithia Motors Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, May 22nd. Stockholders of record on Friday, May 8th were given a dividend of $0.57 per share. The ex-dividend date of this dividend was Friday, May 8th. This is an increase 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 presently 8.01%.

Lithia Motors announced that its board has initiated a share repurchase plan on Tuesday, May 26th that authorizes the company to repurchase $500.00 million in outstanding shares. This repurchase authorization authorizes the company to repurchase up to 7.9% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's board believes its stock is undervalued.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on LAD shares. JPMorgan Chase & Co. lifted their price objective on Lithia Motors from $320.00 to $325.00 and gave the stock a "neutral" rating in a report on Thursday, May 7th. Bank of America reduced their price objective on Lithia Motors from $335.00 to $320.00 in a report on Monday, April 13th. Wells Fargo & Company lifted their price objective on Lithia Motors from $293.00 to $305.00 and gave the stock an "equal weight" rating in a report on Thursday, April 30th. Citigroup lifted their price objective on Lithia Motors from $326.00 to $365.00 and gave the stock a "buy" rating in a report on Friday, May 1st. Finally, Barclays lowered their target price on Lithia Motors from $380.00 to $370.00 and set an "overweight" rating on the stock in a report on Tuesday, April 7th. Seven research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat, Lithia Motors presently has an average rating of "Moderate Buy" and an average price target of $368.11.

Insider Buying and Selling

In related news, Director Shauna Mcintyre sold 245 shares of the company's stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $294.64, for a total transaction of $72,186.80. Following the sale, the director directly owned 1,846 shares of the company's stock, valued at approximately $543,905.44. This represents a 11.72% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Richard J. Bailey, Jr. sold 297 shares of the company's stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $280.57, for a total value of $83,329.29. Following the sale, the director directly owned 760 shares in the company, valued at approximately $213,233.20. This represents a 28.10% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 617 shares of company stock valued at $174,966 in the last three months. Corporate 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.

Want to see what other hedge funds are holding LAD? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Lithia Motors, Inc. (NYSE:LAD - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.