Madison Asset Management LLC Sells 16,972 Shares of Lithia Motors, Inc. $LAD

Key Points

• Madison Asset Management cut its Lithia Motors stake by 6.0% in the fourth quarter, selling 16,972 shares and leaving it with 266,043 shares valued at about $88.4 million.
• Lithia Motors reported better-than-expected quarterly results, posting EPS of $7.34 versus estimates of $7.06 and revenue of $9.27 billion, while analysts still see a full-year EPS of 34.44.
• The company raised its quarterly dividend to $0.57 per share from $0.55, even as analyst ratings remain mixed with a consensus of Moderate Buy and an average price target of $367.22.

Madison Asset Management LLC reduced its position in Lithia Motors, Inc. (NYSE:LAD - Free Report) by 6.0% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 266,043 shares of the company's stock after selling 16,972 shares during the quarter. Madison Asset Management LLC owned about 1.10% of Lithia Motors worth $88,414,000 at the end of the most recent reporting period.

A number of other institutional investors have also recently made changes to their positions in the business. Abrams Capital Management L.P. increased its position in Lithia Motors by 1.9% during the 3rd quarter. Abrams Capital Management L.P. now owns 2,490,534 shares of the company's stock valued at $787,009,000 after buying an additional 45,856 shares in the last quarter. Dimensional Fund Advisors LP raised its position in shares of Lithia Motors by 1.1% in the 3rd quarter. Dimensional Fund Advisors LP now owns 1,340,670 shares of the company's stock valued at $423,662,000 after purchasing an additional 14,015 shares during the last quarter. Canada Pension Plan Investment Board boosted its stake in Lithia Motors by 5.9% in the 2nd quarter. Canada Pension Plan Investment Board now owns 612,377 shares of the company's stock worth $206,873,000 after purchasing an additional 33,966 shares in the last quarter. Hotchkis & Wiley Capital Management LLC increased its stake in Lithia Motors by 3.6% during the 3rd quarter. Hotchkis & Wiley Capital Management LLC now owns 426,120 shares of the company's stock valued at $134,654,000 after purchasing an additional 14,781 shares in the last quarter. Finally, Bridges Investment Management Inc. raised its holdings in shares of Lithia Motors by 3.0% in the third quarter. Bridges Investment Management Inc. now owns 263,157 shares of the company's stock worth $83,158,000 after buying an additional 7,558 shares during the last quarter.

Insider Transactions at Lithia Motors

In related news, Director Shauna Mcintyre sold 245 shares of the business's stock in a transaction on Monday, May 11th. The shares were sold at an average price of $294.64, for a total value of $72,186.80. Following the completion of the sale, the director owned 1,846 shares of the company's stock, valued at approximately $543,905.44. The trade was a 11.72% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 1.08% of the company's stock.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on the stock. Barclays dropped their price objective on shares of Lithia Motors from $380.00 to $370.00 and set an "overweight" rating on the stock in a report on Tuesday, April 7th. JPMorgan Chase & Co. upped their target price on Lithia Motors from $320.00 to $325.00 and gave the company a "neutral" rating in a research report on Thursday, May 7th. Wall Street Zen downgraded shares of Lithia Motors from a "hold" rating to a "sell" rating in a report on Saturday, February 28th. Bank of America decreased their price objective on shares of Lithia Motors from $335.00 to $320.00 in a research note on Monday, April 13th. Finally, Wells Fargo & Company increased their price objective on shares of Lithia Motors from $293.00 to $305.00 and gave the stock an "equal weight" rating in a research note on Thursday, April 30th. Six equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company's stock. Based on data from MarketBeat.com, Lithia Motors has a consensus rating of "Moderate Buy" and an average price target of $367.22.

Lithia Motors Price Performance

NYSE:LAD opened at $276.50 on Wednesday. The company has a quick ratio of 0.24, a current ratio of 0.99 and a debt-to-equity ratio of 1.41. Lithia Motors, Inc. has a 52 week low of $239.78 and a 52 week high of $360.55. The stock's 50-day moving average price is $267.58 and its 200-day moving average price is $301.68. The stock has a market capitalization of $6.31 billion, a PE ratio of 9.71, a price-to-earnings-growth ratio of 0.63 and a beta of 1.28.

Lithia Motors (NYSE:LAD - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The company reported $7.34 earnings per share for the quarter, topping analysts' consensus estimates of $7.06 by $0.28. Lithia Motors had a return on equity of 12.49% and a net margin of 1.88%.The company had revenue of $9.27 billion during the quarter, compared to analysts' expectations of $9.22 billion. During the same quarter in the prior year, the firm posted $7.66 EPS. Lithia Motors's quarterly revenue was up 1.0% compared to the same quarter last year. As a group, equities analysts expect that Lithia Motors, Inc. will post 34.44 EPS for the current fiscal year.

Lithia Motors Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, May 22nd. Stockholders of record on Friday, May 8th will be given a dividend of $0.57 per share. This is a positive change from Lithia Motors's previous quarterly dividend of $0.55. The ex-dividend date is Friday, May 8th. This represents a $2.28 dividend on an annualized basis and a dividend yield of 0.8%. Lithia Motors's payout ratio is 8.01%.

Lithia Motors Company 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.

Want to see what other hedge funds are holding LAD? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Lithia Motors, Inc. (NYSE:LAD - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.