Hsbc Holdings PLC Raises Stock Position in Lithia Motors, Inc. $LAD

Key Points

• Hsbc Holdings PLC increased its stake in Lithia Motors by a staggering 1,539.1% during the first quarter, owning 15,096 shares valued at approximately $4.38 million.
• Lithia Motors reported a strong quarterly earnings result with an EPS of $10.24, exceeding the consensus estimate by $0.46, and generated revenue of $9.58 billion.
• The company recently announced a quarterly dividend of $0.55, which translates to an annual yield of 0.7%, reflecting a dividend payout ratio of 6.52%.

Hsbc Holdings PLC lifted its stake in Lithia Motors, Inc. (NYSE:LAD - Free Report) by 1,539.1% during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 15,096 shares of the company's stock after buying an additional 14,175 shares during the period. Hsbc Holdings PLC owned approximately 0.06% of Lithia Motors worth $4,379,000 as of its most recent SEC filing.

Other large investors have also recently modified their holdings of the company. Wealth Enhancement Advisory Services LLC increased its holdings in Lithia Motors by 118.1% during the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 1,841 shares of the company's stock valued at $541,000 after purchasing an additional 997 shares during the period. Cambridge Investment Research Advisors Inc. increased its holdings in Lithia Motors by 1.5% during the 1st quarter. Cambridge Investment Research Advisors Inc. now owns 2,421 shares of the company's stock valued at $711,000 after purchasing an additional 35 shares during the period. Vident Advisory LLC increased its holdings in Lithia Motors by 4.3% during the 4th quarter. Vident Advisory LLC now owns 780 shares of the company's stock valued at $279,000 after purchasing an additional 32 shares during the period. GAMMA Investing LLC increased its holdings 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 during the period. Finally, Invesco Ltd. increased its holdings in Lithia Motors by 4.4% during the 1st quarter. Invesco Ltd. now owns 119,466 shares of the company's stock valued at $35,068,000 after purchasing an additional 5,005 shares during the period.

Lithia Motors Stock Performance

LAD traded down $1.21 during mid-day trading on Thursday, reaching $338.77. 318,262 shares of the company traded hands, compared to its average volume of 329,772. The stock has a market capitalization of $8.69 billion, a P/E ratio of 10.04, a P/E/G ratio of 0.53 and a beta of 1.30. 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's fifty day moving average price is $320.44 and its 200-day moving average price is $315.99. Lithia Motors, Inc. has a 52-week low of $255.32 and a 52-week high of $405.67.

Lithia Motors (NYSE:LAD - Get Free Report) last announced its earnings results on Tuesday, July 29th. The company reported $10.24 earnings per share for the quarter, beating analysts' consensus estimates 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 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 Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 22nd. Stockholders of record on Friday, August 8th were paid a $0.55 dividend. This represents a $2.20 annualized dividend and a dividend yield of 0.6%. The ex-dividend date was Friday, August 8th. Lithia Motors's dividend payout ratio is 6.52%.

Lithia Motors announced that its board has approved a stock repurchase program on Tuesday, August 26th that authorizes the company to repurchase $750.00 million in shares. This repurchase authorization authorizes the company to repurchase up to 9% of its stock through open market purchases. Stock repurchase programs are often a sign that the company's board of directors believes its stock is undervalued.

Analyst Ratings Changes

LAD has been the topic of several research reports. JPMorgan Chase & Co. cut their price objective on Lithia Motors from $335.00 to $315.00 and set an "overweight" rating on the stock in a research report on Tuesday, August 5th. Bank of America lifted their price objective on Lithia Motors from $430.00 to $500.00 and gave the company a "buy" rating in a research report on Monday, June 16th. The Goldman Sachs Group initiated coverage on Lithia Motors in a research report on Tuesday, June 3rd. They set a "neutral" rating and a $340.00 price objective on the stock. Guggenheim cut their price objective on Lithia Motors from $383.00 to $380.00 and set a "buy" rating on the stock in a research report on Monday, August 11th. Finally, Citigroup boosted their price target on Lithia Motors from $378.00 to $383.00 and gave the stock a "buy" rating in a research report on Tuesday, August 5th. Seven investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $379.00.

Insider Activity at Lithia Motors

In other news, Director Shauna Mcintyre sold 256 shares of the company's stock in a transaction on Thursday, July 31st. The stock was sold at an average price of $293.05, for a total value 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. This represents a 15.69% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. 0.87% of the stock is owned by company 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.