Lithia Motors, Inc. (NYSE:LAD) Shares Purchased by Abrams Capital Management L.P.

Key Points

• Abrams Capital Management L.P. increased its stake in Lithia Motors by 2.2%, making it the fund's second biggest holding, with around 9.39% ownership valued at $717.6 million.
• Analysts have updated their price targets for Lithia Motors, with Bank of America raising it to $500, while JPMorgan Chase lowered theirs to $315, contributing to an overall consensus rating of "Moderate Buy".
• Lithia Motors declared a quarterly dividend of $0.55, with a yield of 0.7%, set to be paid out on August 22nd to investors of record on August 8th.

Abrams Capital Management L.P. raised its stake in Lithia Motors, Inc. (NYSE:LAD - Free Report) by 2.2% during the first quarter, according to its most recent disclosure with the SEC. The fund owned 2,444,678 shares of the company's stock after buying an additional 53,490 shares during the quarter. Lithia Motors makes up about 12.6% of Abrams Capital Management L.P.'s investment portfolio, making the stock its 2nd largest holding. Abrams Capital Management L.P. owned about 9.39% of Lithia Motors worth $717,611,000 at the end of the most recent reporting period.

Other hedge funds also recently added to or reduced their stakes in the company. NBC Securities Inc. acquired a new position in shares of Lithia Motors during the first quarter valued at $59,000. UMB Bank n.a. boosted 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 worth $60,000 after acquiring an additional 79 shares during the period. CWM LLC boosted its position in Lithia Motors by 30.1% during the 1st quarter. CWM LLC now owns 212 shares of the company's stock worth $62,000 after acquiring an additional 49 shares during the period. GAMMA Investing LLC lifted its holdings in shares of 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 buying an additional 85 shares during the last quarter. Finally, Forum Financial Management LP acquired a new stake in shares of Lithia Motors during the 4th quarter valued at about $202,000.

Lithia Motors Trading Down 0.2%

NYSE LAD traded down $0.61 on Friday, reaching $292.21. The company had a trading volume of 253,263 shares, compared to its average volume of 390,020. The stock's 50 day moving average is $323.31 and its 200-day moving average is $321.01. The stock has a market cap of $7.61 billion, a price-to-earnings ratio of 8.66, a PEG ratio of 0.45 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. 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 released its quarterly earnings data on Tuesday, July 29th. The company reported $10.24 EPS 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 the consensus estimate of $9.56 billion. Lithia Motors had a return on equity of 13.21% and a net margin of 2.39%. Equities analysts predict that Lithia Motors, Inc. will post 34.45 earnings per share for the current year.

Lithia Motors Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, August 22nd. Shareholders of record on Friday, August 8th will be issued a $0.55 dividend. This represents a $2.20 annualized dividend and a dividend yield of 0.8%. The ex-dividend date is Friday, August 8th. Lithia Motors's dividend payout ratio is 6.52%.

Wall Street Analysts Forecast Growth

LAD has been the topic of a number of recent analyst reports. Citigroup raised their price objective on Lithia Motors from $378.00 to $383.00 and gave the company a "buy" rating in a research note on Tuesday. JPMorgan Chase & Co. lowered 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. The Goldman Sachs Group started coverage on Lithia Motors in a research note on Tuesday, June 3rd. They issued a "neutral" rating and a $340.00 price target on the stock. Guggenheim decreased their price target on Lithia Motors from $417.00 to $356.00 and set a "buy" rating on the stock in a research note on Tuesday, April 22nd. Finally, Wells Fargo & Company decreased their price target on Lithia Motors from $364.00 to $317.00 and set an "equal weight" rating on the stock in a research note on Wednesday, July 30th. Four research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company's stock. According to MarketBeat, Lithia Motors has a consensus rating of "Moderate Buy" and an average target price of $376.60.

Insider Activity

In other Lithia Motors news, Director Shauna Mcintyre sold 256 shares of the stock in a transaction dated 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 ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.87% of the stock is owned by company insiders.

Lithia Motors Company 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.