Harbor Capital Advisors Inc. Raises Stake in Lithia Motors, Inc. $LAD

Key Points

• Harbor Capital Advisors Inc. increased its position in Lithia Motors by 39.6% during the second quarter, owning 16,823 shares valued at approximately $5.68 million.
• Multiple institutional investors, including Parallel Advisors and eCIO Inc., have also significantly increased their holdings in Lithia Motors, indicating growing investor confidence.
• Lithia Motors recently announced a $750 million stock repurchase plan and declared a quarterly dividend of $0.55 per share, reflecting the company's strong financial position and commitment to shareholder returns.

Harbor Capital Advisors Inc. grew its holdings in Lithia Motors, Inc. (NYSE:LAD - Free Report) by 39.6% in the second quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 16,823 shares of the company's stock after acquiring an additional 4,770 shares during the quarter. Harbor Capital Advisors Inc. owned 0.06% of Lithia Motors worth $5,683,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently made changes to their positions in LAD. Deutsche Bank AG grew its stake in shares of Lithia Motors by 56.0% in the 4th quarter. Deutsche Bank AG now owns 2,528 shares of the company's stock worth $904,000 after acquiring an additional 908 shares in the last quarter. Quantinno Capital Management LP lifted its stake in Lithia Motors by 92.6% in the fourth quarter. Quantinno Capital Management LP now owns 2,088 shares of the company's stock worth $746,000 after acquiring an additional 1,004 shares during the period. ProShare Advisors LLC lifted its position in Lithia Motors by 6.8% during the fourth quarter. ProShare Advisors LLC now owns 1,245 shares of the company's stock valued at $445,000 after buying an additional 79 shares during the period. Vident Advisory LLC lifted its position in Lithia Motors by 4.3% during the fourth quarter. Vident Advisory LLC now owns 780 shares of the company's stock valued at $279,000 after buying an additional 32 shares during the period. Finally, Waverly Advisors LLC increased its holdings in Lithia Motors by 2.3% in the 4th quarter. Waverly Advisors LLC now owns 3,927 shares of the company's stock worth $1,404,000 after buying an additional 90 shares in the last quarter.

Lithia Motors Price Performance

Shares of NYSE:LAD traded down $5.18 during trading on Friday, reaching $332.15. 365,100 shares of the company's stock traded hands, compared to its average volume of 266,131. The company has a quick ratio of 0.29, a current ratio of 1.22 and a debt-to-equity ratio of 1.24. The company has a 50-day simple moving average of $318.28 and a 200-day simple moving average of $313.66. Lithia Motors, Inc. has a fifty-two week low of $262.10 and a fifty-two week high of $405.67. The firm has a market cap of $8.52 billion, a PE ratio of 9.85, a P/E/G ratio of 0.67 and a beta of 1.31.

Lithia Motors (NYSE:LAD - Get Free Report) last posted its earnings results on Tuesday, July 29th. The company reported $10.24 EPS for the quarter, beating the consensus estimate 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 for the quarter, compared to analyst estimates of $9.56 billion. As a group, analysts predict that Lithia Motors, Inc. will post 34.45 earnings per share for the current year.

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

Lithia Motors Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, August 22nd. Investors of record on Friday, August 8th were issued a $0.55 dividend. This represents a $2.20 annualized dividend and a yield of 0.7%. The ex-dividend date was Friday, August 8th. Lithia Motors's dividend payout ratio (DPR) is 6.52%.

Insider Buying and Selling at Lithia Motors

In related news, Director Shauna Mcintyre sold 256 shares of the business's stock in a transaction that occurred on Thursday, July 31st. The shares were 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. The trade was a 15.69% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Company insiders own 0.87% of the company's stock.

Wall Street Analysts Forecast Growth

LAD has been the topic of a number of analyst reports. Jefferies Financial Group started coverage on Lithia Motors in a research note on Thursday, September 4th. They set a "buy" rating and a $400.00 target price on the stock. JPMorgan Chase & Co. reduced their price target on shares of Lithia Motors from $335.00 to $315.00 and set an "overweight" rating for the company in a research report on Tuesday, August 5th. Bank of America dropped their price objective on shares of Lithia Motors from $500.00 to $385.00 and set a "buy" rating for the company in a research note on Wednesday, September 10th. The Goldman Sachs Group initiated coverage on shares of Lithia Motors in a report on Tuesday, June 3rd. They issued a "neutral" rating and a $340.00 price objective on the stock. Finally, Wells Fargo & Company lowered their price objective on shares of Lithia Motors from $364.00 to $317.00 and set an "equal weight" rating for the company in a research report on Wednesday, July 30th. Eight analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus 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.