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

Several other hedge funds and other institutional investors have also recently made changes to their positions in the business. Mariner LLC boosted its holdings in shares of Lithia Motors by 2.9% in the fourth quarter. Mariner LLC now owns 1,475 shares of the company's stock worth $527,000 after buying an additional 42 shares during the last quarter. Stifel Financial Corp raised its position in Lithia Motors by 4.3% in the fourth quarter. Stifel Financial Corp now owns 18,003 shares of the company's stock worth $6,435,000 after acquiring an additional 738 shares during the period. Price T Rowe Associates Inc. MD raised its position in Lithia Motors by 6.7% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 17,345 shares of the company's stock worth $6,200,000 after acquiring an additional 1,082 shares during the period. Susquehanna Fundamental Investments LLC purchased a new position in shares of Lithia Motors during the 4th quarter worth $3,910,000. Finally, The Manufacturers Life Insurance Company grew its position in shares of Lithia Motors by 10.8% during the 4th quarter. The Manufacturers Life Insurance Company now owns 183,734 shares of the company's stock valued at $65,672,000 after acquiring an additional 17,876 shares during the period.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on LAD shares. Wells Fargo & Company decreased their target price on Lithia Motors from $364.00 to $317.00 and set an "equal weight" rating on the stock in a report on Wednesday, July 30th. Guggenheim reduced their price target on Lithia Motors from $383.00 to $380.00 and set a "buy" rating for the company in a research report 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 note on Tuesday, August 5th. JPMorgan Chase & Co. cut their price objective on Lithia Motors from $335.00 to $315.00 and set an "overweight" rating for the company in a research note on Tuesday, August 5th. Finally, Bank of America increased their target price on shares of Lithia Motors from $430.00 to $500.00 and gave the stock a "buy" rating in a report on Monday, June 16th. Seven research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Lithia Motors presently has an average rating of "Moderate Buy" and an average target price of $379.00.

Lithia Motors Price Performance

LAD traded down $2.11 during trading on Friday, hitting $336.40. 353,439 shares of the company traded hands, compared to its average volume of 317,233. The company has a current ratio of 1.22, a quick ratio of 0.29 and a debt-to-equity ratio of 1.24. The company has a market cap of $8.63 billion, a PE ratio of 9.97, a P/E/G ratio of 0.52 and a beta of 1.31. The stock's 50-day simple moving average is $320.54 and its two-hundred day simple moving average is $314.80. Lithia Motors, Inc. has a 1 year low of $255.32 and a 1 year high of $405.67.

Lithia Motors (NYSE:LAD - Get Free Report) last released its quarterly earnings data on Tuesday, July 29th. The company reported $10.24 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 the consensus estimate of $9.56 billion. Lithia Motors had a net margin of 2.39% and a return on equity of 13.21%. As a group, sell-side analysts anticipate 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. Investors of record on Friday, August 8th were paid a dividend of $0.55 per share. The ex-dividend date of this dividend was Friday, August 8th. This represents a $2.20 dividend on an annualized basis and a yield of 0.7%. Lithia Motors's dividend payout ratio is presently 6.52%.

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

Insiders Place Their Bets

In other Lithia Motors news, Director Shauna Mcintyre sold 256 shares of Lithia Motors stock in a transaction that occurred 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 sale, the director owned 1,376 shares of the company's stock, valued at $403,236.80. The trade was a 15.69% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. 0.87% of the stock is 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.