Lithia Motors, Inc. $LAD Shares Sold by Inspire Investing LLC

Key Points

• Inspire Investing LLC significantly reduced its position in Lithia Motors by 68.6%, owning only 1,371 shares worth approximately $402,000 after selling 2,990 shares in the first quarter.
• Lithia Motors has announced a stock buyback plan allowing for the repurchase of up to $750 million in shares, indicating that the board believes its shares are undervalued.
• Analysts maintain a consensus rating of "Moderate Buy" for Lithia Motors, with a target price of approximately $370.45, despite mixed revisions from several brokerages.

Inspire Investing LLC reduced its position in shares of Lithia Motors, Inc. (NYSE:LAD - Free Report) by 68.6% during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 1,371 shares of the company's stock after selling 2,990 shares during the period. Inspire Investing LLC's holdings in Lithia Motors were worth $402,000 at the end of the most recent quarter.

A number of other institutional investors have also recently bought and sold shares of the stock. Abrams Capital Management L.P. increased its stake in Lithia Motors by 2.2% in 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 in the last quarter. Coppell Advisory Solutions LLC increased its stake in Lithia Motors by 10,136,710.0% in the 1st quarter. Coppell Advisory Solutions LLC now owns 2,027,362 shares of the company's stock worth $595,112,000 after purchasing an additional 2,027,342 shares in the last quarter. Dimensional Fund Advisors LP increased its stake in Lithia Motors by 6.1% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,267,519 shares of the company's stock worth $372,053,000 after purchasing an additional 72,980 shares in the last quarter. Steadfast Capital Management LP increased its stake in Lithia Motors by 137.8% in 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 in the last quarter. Finally, Hotchkis & Wiley Capital Management LLC increased its stake in Lithia Motors by 8.8% in the 1st quarter. Hotchkis & Wiley Capital Management LLC now owns 376,467 shares of the company's stock worth $110,508,000 after purchasing an additional 30,420 shares in the last quarter.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on LAD. Guggenheim dropped their price target on Lithia Motors from $383.00 to $380.00 and set a "buy" rating on the stock in a research note on Monday, August 11th. Citigroup raised their price objective on Lithia Motors from $378.00 to $383.00 and gave the stock a "buy" rating in a research report on Tuesday, August 5th. Bank of America decreased their price objective on Lithia Motors from $500.00 to $385.00 and set a "buy" rating for the company in a research report on Wednesday. JPMorgan Chase & Co. decreased their price objective on Lithia Motors from $335.00 to $315.00 and set an "overweight" rating for the company in a research report on Tuesday, August 5th. Finally, Wells Fargo & Company decreased their price objective on 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 research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $370.45.

Lithia Motors Trading Down 2.8%

Shares of NYSE LAD opened at $334.34 on Friday. The firm has a market capitalization of $8.57 billion, a PE ratio of 9.91, a PEG ratio of 0.70 and a beta of 1.31. The company has a current ratio of 1.22, a quick ratio of 0.29 and a debt-to-equity ratio of 1.24. Lithia Motors, Inc. has a one year low of $262.10 and a one year high of $405.67. The business has a 50-day moving average price of $319.94 and a two-hundred day moving average price of $313.53.

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 the consensus estimate of $9.78 by $0.46. The business had revenue of $9.58 billion during the quarter, compared to analyst estimates of $9.56 billion. Lithia Motors had a return on equity of 13.21% and a net margin of 2.39%. As a group, analysts predict that Lithia Motors, Inc. will post 34.45 earnings per share for the current fiscal year.

Lithia Motors Announces Dividend

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

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

Insider Activity

In other news, Director Shauna Mcintyre sold 256 shares of Lithia Motors stock in a transaction dated 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 in the company, valued at $403,236.80. The trade was a 15.69% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 0.87% of the stock is currently owned by corporate insiders.

About Lithia Motors

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.

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