Millennium Management LLC Has $53.36 Million Holdings in Lithia Motors, Inc. $LAD

Key Points

• Millennium Management LLC increased its stake in Lithia Motors, Inc. by an astonishing 1,840.6%, owning 181,777 shares and valued at approximately $53.36 million.
• Despite mixed analyst forecasts, Lithia Motors has received buy ratings from eight analysts, with a consensus price target of $380.91.
• The company announced a $750 million stock repurchase plan, indicating management's belief that its stock is undervalued.

Millennium Management LLC increased its position in shares of Lithia Motors, Inc. (NYSE:LAD - Free Report) by 1,840.6% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 181,777 shares of the company's stock after buying an additional 172,410 shares during the period. Millennium Management LLC owned 0.70% of Lithia Motors worth $53,359,000 at the end of the most recent reporting period.

Several other institutional investors have also recently bought and sold shares of LAD. NBC Securities Inc. bought a new stake in Lithia Motors during the first quarter valued at about $59,000. UMB Bank n.a. lifted its position in shares of 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 purchasing an additional 79 shares during the last quarter. CWM LLC boosted its stake 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 during the period. GAMMA Investing LLC grew its holdings in Lithia Motors by 50.9% in 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, Quarry LP acquired a new stake in Lithia Motors in the 1st quarter valued at approximately $136,000.

Wall Street Analysts Forecast Growth

LAD has been the subject of several research reports. Guggenheim reduced their price objective 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. Bank of America cut their target price on shares of Lithia Motors from $500.00 to $385.00 and set a "buy" rating for the company in a research note on Wednesday. Wells Fargo & Company dropped their price objective on shares of Lithia Motors from $364.00 to $317.00 and set an "equal weight" rating on the stock in a report on Wednesday, July 30th. The Goldman Sachs Group started coverage on shares of Lithia Motors in a research report on Tuesday, June 3rd. They set a "neutral" rating and a $340.00 price objective for the company. Finally, JPMorgan Chase & Co. decreased their target price 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. Eight investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $370.45.

Insider Activity at Lithia Motors

In related news, Director Shauna Mcintyre sold 256 shares of the business'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 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 sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.87% of the stock is owned by company insiders.

Lithia Motors Price Performance

Shares of NYSE:LAD traded down $9.66 during midday trading on Friday, reaching $334.34. 234,700 shares of the company's stock were exchanged, compared to its average volume of 287,090. The company has a debt-to-equity ratio of 1.24, a quick ratio of 0.29 and a current ratio of 1.22. The company's 50 day simple moving average is $319.94 and its two-hundred day simple moving average is $313.74. Lithia Motors, Inc. has a 12 month low of $262.10 and a 12 month high of $405.67. The firm has a market capitalization of $8.57 billion, a PE ratio of 9.91, a price-to-earnings-growth ratio of 0.70 and a beta of 1.31.

Lithia Motors (NYSE:LAD - Get Free Report) last posted 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 for the quarter, compared to analysts' expectations of $9.56 billion. Lithia Motors had a net margin of 2.39% and a return on equity of 13.21%. Equities research analysts expect that Lithia Motors, Inc. will post 34.45 earnings per share for the current fiscal year.

Lithia Motors Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, August 22nd. Stockholders of record on Friday, August 8th were issued a $0.55 dividend. The ex-dividend date of this dividend was Friday, August 8th. This represents a $2.20 dividend on an annualized basis and a dividend yield of 0.7%. Lithia Motors's dividend payout ratio is presently 6.52%.

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

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.