Lithia Motors, Inc. $LAD Shares Sold by UBS Group AG

Key Points

• UBS Group AG reduced its stake in Lithia Motors by 14.8% in Q4, selling 23,504 shares and now holding 135,151 shares (~0.56%) valued at about $44.9 million.
• Analysts have trimmed price targets recently (Barclays to $370; Bank of America and JPMorgan to $320), leaving a split of six Buys and six Holds and a MarketBeat consensus of a “Moderate Buy” with an average target of $366.67.
• Lithia topped quarterly estimates with EPS of $7.34 (vs. $7.06 est.) on $9.27 billion of revenue and raised its quarterly dividend to $0.57 (annualized $2.28; ex-dividend May 8), a ~0.8% yield.

UBS Group AG decreased its position in Lithia Motors, Inc. (NYSE:LAD - Free Report) by 14.8% in the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 135,151 shares of the company's stock after selling 23,504 shares during the period. UBS Group AG owned approximately 0.56% of Lithia Motors worth $44,915,000 as of its most recent SEC filing.

Several other large investors also recently made changes to their positions in the company. CoreCap Advisors LLC acquired a new position in shares of Lithia Motors during the third quarter worth approximately $26,000. Eastern Bank acquired a new stake in shares of Lithia Motors in the 3rd quarter worth approximately $31,000. Root Financial Partners LLC acquired a new stake in shares of Lithia Motors in the 3rd quarter worth approximately $31,000. Parkside Financial Bank & Trust boosted its holdings in shares of Lithia Motors by 75.0% in the third quarter. Parkside Financial Bank & Trust now owns 105 shares of the company's stock valued at $33,000 after acquiring an additional 45 shares in the last quarter. Finally, V Square Quantitative Management LLC acquired a new position in shares of Lithia Motors during the fourth quarter valued at approximately $34,000.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on LAD shares. Barclays cut their target price on Lithia Motors from $380.00 to $370.00 and set an "overweight" rating for the company in a research report on Tuesday, April 7th. Weiss Ratings downgraded Lithia Motors from a "hold (c)" rating to a "hold (c-)" rating in a research note on Monday. Bank of America cut their price objective on Lithia Motors from $335.00 to $320.00 in a report on Monday, April 13th. Wall Street Zen lowered Lithia Motors from a "hold" rating to a "sell" rating in a report on Saturday, February 28th. Finally, JPMorgan Chase & Co. cut their target price on shares of Lithia Motors from $335.00 to $320.00 and set a "neutral" rating for the company in a research note on Friday, April 17th. Six research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $366.67.

Lithia Motors Stock Up 1.0%

LAD stock opened at $289.52 on Thursday. The company has a debt-to-equity ratio of 1.41, a current ratio of 0.99 and a quick ratio of 0.24. The firm has a market capitalization of $6.77 billion, a P/E ratio of 10.17, a P/E/G ratio of 0.63 and a beta of 1.28. Lithia Motors, Inc. has a 52-week low of $239.78 and a 52-week high of $360.55. The company's 50 day simple moving average is $267.09 and its 200-day simple moving average is $302.34.

Lithia Motors (NYSE:LAD - Get Free Report) last posted its quarterly earnings data on Wednesday, April 29th. The company reported $7.34 earnings per share 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 firm had revenue of $9.27 billion for the quarter, compared to analysts' expectations of $9.22 billion. During the same period in the previous year, the company posted $7.66 EPS. The company's quarterly revenue was up 1.0% compared to the same quarter last year. As a group, equities research analysts anticipate that Lithia Motors, Inc. will post 34.58 EPS for the current year.

Lithia Motors Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, May 22nd. Stockholders of record on Friday, May 8th will be issued a dividend of $0.57 per share. This is a positive change 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%. The ex-dividend date is Friday, May 8th. Lithia Motors's dividend payout ratio is presently 7.72%.

Lithia Motors 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.

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