Park West Asset Management LLC Takes Position in Lithia Motors, Inc. $LAD

Key Points

• Park West Asset Management LLC acquired 200,400 shares of Lithia Motors, Inc., valued at approximately $58.8 million, making it the fund's third-largest position.
• Several institutional investors, including Ameriprise Financial and Deutsche Bank, have increased their holdings in Lithia Motors, reflecting growing confidence in the company.
• Lithia Motors announced a $750 million stock buyback plan and recently paid a quarterly dividend of $0.55 per share, showing a return of value to shareholders.

Park West Asset Management LLC purchased a new stake in Lithia Motors, Inc. (NYSE:LAD - Free Report) in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund purchased 200,400 shares of the company's stock, valued at approximately $58,825,000. Lithia Motors accounts for 4.8% of Park West Asset Management LLC's holdings, making the stock its 3rd largest position. Park West Asset Management LLC owned approximately 0.77% of Lithia Motors at the end of the most recent quarter.

Several other institutional investors and hedge funds also recently made changes to their positions in LAD. Ameriprise Financial Inc. grew its holdings in shares of Lithia Motors by 0.9% in the 4th quarter. Ameriprise Financial Inc. now owns 124,875 shares of the company's stock valued at $44,634,000 after buying an additional 1,062 shares during the period. BNP Paribas Financial Markets increased its position in shares of Lithia Motors by 26.6% during the fourth quarter. BNP Paribas Financial Markets now owns 12,740 shares of the company's stock worth $4,554,000 after acquiring an additional 2,675 shares in the last quarter. Benjamin Edwards Inc. increased its position in shares of Lithia Motors by 5.6% during the fourth quarter. Benjamin Edwards Inc. now owns 700 shares of the company's stock worth $250,000 after acquiring an additional 37 shares in the last quarter. Deutsche Bank AG increased its position in shares of Lithia Motors by 56.0% during the fourth quarter. Deutsche Bank AG now owns 2,528 shares of the company's stock worth $904,000 after acquiring an additional 908 shares in the last quarter. Finally, FORA Capital LLC increased its position in shares of Lithia Motors by 13.8% during the fourth quarter. FORA Capital LLC now owns 2,332 shares of the company's stock worth $834,000 after acquiring an additional 282 shares in the last quarter.

Insider Activity at Lithia Motors

In other news, Director Shauna Mcintyre sold 256 shares of Lithia Motors stock in a transaction dated Thursday, July 31st. The shares were sold at an average price of $293.05, for a total value of $75,020.80. Following the completion of the transaction, the director owned 1,376 shares of the company's stock, valued at $403,236.80. This trade represents a 15.69% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. 0.87% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on the stock. JPMorgan Chase & Co. lowered their price objective on shares of Lithia Motors from $335.00 to $315.00 and set an "overweight" rating for the company in a research report on Tuesday, August 5th. Wells Fargo & Company lowered their price objective on shares of Lithia Motors from $364.00 to $317.00 and set an "equal weight" rating for the company in a research report on Wednesday, July 30th. Jefferies Financial Group assumed coverage on shares of Lithia Motors in a research report on Thursday. They set a "buy" rating and a $400.00 price objective for the company. Bank of America increased their price objective on shares of Lithia Motors from $430.00 to $500.00 and gave the stock a "buy" rating in a research report on Monday, June 16th. Finally, Guggenheim lowered their price objective on shares of Lithia Motors from $383.00 to $380.00 and set a "buy" rating for the company in a research report on Monday, August 11th. Eight equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat.com, Lithia Motors currently has an average rating of "Moderate Buy" and an average target price of $380.91.

Lithia Motors Stock Up 0.3%

Lithia Motors stock opened at $341.10 on Friday. The company has a market cap of $8.75 billion, a P/E ratio of 10.11, a price-to-earnings-growth ratio of 0.53 and a beta of 1.31. Lithia Motors, Inc. has a 1-year low of $255.32 and a 1-year high of $405.67. The company has a fifty day simple moving average of $320.73 and a 200 day simple moving average of $314.22. The company has a current ratio of 1.22, a quick ratio of 0.29 and a debt-to-equity ratio of 1.24.

Lithia Motors (NYSE:LAD - Get Free Report) last released 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 the consensus estimate of $9.56 billion. Lithia Motors had a net margin of 2.39% and a return on equity of 13.21%. Research analysts anticipate that Lithia Motors, Inc. will post 34.45 earnings per share for the current fiscal year.

Lithia Motors announced that its Board of Directors has initiated a stock buyback plan on Tuesday, August 26th that permits the company to repurchase $750.00 million in shares. This repurchase authorization permits the company to purchase up to 9% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's board believes its stock is undervalued.

Lithia Motors Announces Dividend

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

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.

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