PDT Partners LLC Takes Position in Lithia Motors, Inc. $LAD

Key Points

• PDT Partners LLC has made a new investment in Lithia Motors, acquiring approximately 4,814 shares valued at $1.41 million.
• Lithia Motors recently reported earnings of $10.24 per share, exceeding analysts' expectations, with a quarterly revenue of $9.58 billion.
• The company has authorized a stock buyback program of up to $750 million, indicating management's belief that the stock is undervalued.

PDT Partners LLC acquired a new stake in shares of Lithia Motors, Inc. (NYSE:LAD - Free Report) during the 1st quarter, according to the company in its most recent 13F filing with the SEC. The firm acquired 4,814 shares of the company's stock, valued at approximately $1,413,000.

Other institutional investors and hedge funds also recently made changes to their positions in the company. NBC Securities Inc. bought a new position in shares of Lithia Motors during the 1st quarter valued at $59,000. UMB Bank n.a. grew its holdings 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 valued at $60,000 after purchasing an additional 79 shares during the last quarter. CWM LLC grew its holdings in shares of 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 last quarter. GAMMA Investing LLC grew 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 purchasing an additional 85 shares during the last quarter. Finally, Quarry LP bought a new position in shares of Lithia Motors during the 1st quarter valued at $136,000.

Insider Activity

In other news, Director Shauna Mcintyre sold 256 shares of the firm's 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 sale, the director owned 1,376 shares in the company, valued at approximately $403,236.80. This trade represents a 15.69% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 0.87% of the company's stock.

Lithia Motors Stock Performance

LAD stock traded up $1.01 during midday trading on Friday, reaching $341.10. 187,013 shares of the company's stock traded hands, compared to its average volume of 288,412. Lithia Motors, Inc. has a 52-week low of $255.32 and a 52-week high of $405.67. The stock has a market cap of $8.74 billion, a P/E ratio of 10.11, a PEG ratio of 0.53 and a beta of 1.31. 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 stock's 50-day moving average is $320.73 and its 200 day moving average is $313.87.

Lithia Motors (NYSE:LAD - Get Free Report) last announced its earnings results 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 analysts' expectations of $9.56 billion. Lithia Motors had a net margin of 2.39% and a return on equity of 13.21%. As a group, analysts anticipate that Lithia Motors, Inc. will post 34.45 EPS for the current year.

Lithia Motors announced that its board has approved a stock repurchase plan on Tuesday, August 26th that allows the company to repurchase $750.00 million in shares. This repurchase authorization allows the company to buy up to 9% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's board believes its stock is undervalued.

Lithia Motors Announces Dividend

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

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on LAD. Guggenheim cut their price target on shares of Lithia Motors from $383.00 to $380.00 and set a "buy" rating on the stock in a report on Monday, August 11th. Jefferies Financial Group initiated coverage on shares of Lithia Motors in a research note on Thursday. They set a "buy" rating and a $400.00 target price on the stock. Citigroup lifted their target price on shares of Lithia Motors from $378.00 to $383.00 and gave the company a "buy" rating in a research note on Tuesday, August 5th. The Goldman Sachs Group initiated coverage on shares of Lithia Motors in a research note on Tuesday, June 3rd. They set a "neutral" rating and a $340.00 target price on the stock. Finally, 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 research note on Wednesday, July 30th. Eight analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $380.91.

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.