Lithia Motors, Inc. $LAD Shares Acquired by Ameriprise Financial Inc.

Key Points

• Ameriprise Financial Inc. increased its stake in Lithia Motors by 6.0%, owning approximately $38.8 million worth of shares after purchasing additional stocks in the first quarter.
• Lithia Motors recently declared a $0.55 quarterly dividend, representing an annualized dividend yield of 0.6%, and announced a $750 million share repurchase plan.
• The company reported $10.24 EPS for the last quarter, exceeding analysts' estimates of $9.78, with a revenue of $9.58 billion.

Ameriprise Financial Inc. boosted its stake in shares of Lithia Motors, Inc. (NYSE:LAD - Free Report) by 6.0% in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 132,366 shares of the company's stock after buying an additional 7,491 shares during the quarter. Ameriprise Financial Inc. owned approximately 0.51% of Lithia Motors worth $38,845,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently modified their holdings of the company. NBC Securities Inc. bought a new stake in shares of Lithia Motors during the first quarter valued at approximately $59,000. UMB Bank n.a. raised its position in Lithia Motors by 63.7% during the 1st quarter. UMB Bank n.a. now owns 203 shares of the company's stock valued at $60,000 after purchasing an additional 79 shares in the last quarter. CWM LLC raised its position in Lithia Motors by 30.1% during the 1st quarter. CWM LLC now owns 212 shares of the company's stock valued at $62,000 after purchasing an additional 49 shares in the last quarter. GAMMA Investing LLC raised its position in Lithia Motors by 50.9% during the 1st quarter. GAMMA Investing LLC now owns 252 shares of the company's stock valued at $74,000 after purchasing an additional 85 shares in the last quarter. Finally, Caitong International Asset Management Co. Ltd bought a new stake in Lithia Motors during the 1st quarter valued at $143,000.

Insider Transactions 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 transaction of $75,020.80. Following the transaction, 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 filing with the SEC, which is available at this link. 0.87% of the stock is owned by corporate insiders.

Lithia Motors Stock Down 0.3%

Shares of NYSE LAD traded down $1.06 during trading hours on Wednesday, hitting $331.61. 237,454 shares of the stock were exchanged, compared to its average volume of 297,334. 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 market cap of $8.50 billion, a PE ratio of 9.83, a PEG ratio of 0.52 and a beta of 1.31. The firm has a fifty day moving average price of $320.41 and a 200-day moving average price of $314.74. Lithia Motors, Inc. has a 12 month low of $255.32 and a 12 month high of $405.67.

Lithia Motors (NYSE:LAD - Get Free Report) last posted its quarterly earnings data on Tuesday, July 29th. The company reported $10.24 EPS for the quarter, topping the consensus estimate of $9.78 by $0.46. The firm had revenue of $9.58 billion during the quarter, compared to analyst estimates of $9.56 billion. Lithia Motors had a net margin of 2.39% and a return on equity of 13.21%. On average, sell-side analysts expect that Lithia Motors, Inc. will post 34.45 EPS for the current year.

Lithia Motors declared that its board has initiated a stock buyback plan on Tuesday, August 26th that authorizes the company to buyback $750.00 million in outstanding shares. This buyback authorization authorizes the company to reacquire up to 9% of its stock through open market purchases. Stock buyback plans are usually an indication that the company's leadership believes its stock is undervalued.

Lithia Motors Dividend Announcement

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

Analyst Ratings Changes

Several research firms recently weighed in on LAD. Guggenheim decreased their price objective on Lithia Motors from $383.00 to $380.00 and set a "buy" rating for the company in a report on Monday, August 11th. Citigroup lifted their price objective on Lithia Motors from $378.00 to $383.00 and gave the company a "buy" rating in a report on Tuesday, August 5th. Bank of America boosted their price target on shares of Lithia Motors from $430.00 to $500.00 and gave the company a "buy" rating in a report on Monday, June 16th. 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 report on Tuesday, August 5th. Finally, Wells Fargo & Company reduced their price target on shares of Lithia Motors from $364.00 to $317.00 and set an "equal weight" rating for the company in a report on Wednesday, July 30th. Seven research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, Lithia Motors has a consensus rating of "Moderate Buy" and a consensus target price of $379.00.

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.