PenderFund Capital Management Ltd. Makes New $704,000 Investment in Lithia Motors, Inc. $LAD

Key Points

• PenderFund Capital Management Ltd. made a new investment of $704,000 in Lithia Motors, acquiring 2,400 shares.
• Multiple large investors, including Steadfast Capital Management and Millennium Management, significantly increased their stakes in Lithia Motors in recent quarters.
• Lithia Motors' Board of Directors has initiated a stock repurchase program, allowing for the buyback of up to $750 million in shares, indicating confidence in the stock's valuation.

PenderFund Capital Management Ltd. bought a new stake in shares of Lithia Motors, Inc. (NYSE:LAD - Free Report) in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm bought 2,400 shares of the company's stock, valued at approximately $704,000.

A number of other institutional investors and hedge funds also recently bought and sold shares of LAD. Vident Advisory LLC lifted its holdings in Lithia Motors by 4.3% during the 4th quarter. Vident Advisory LLC now owns 780 shares of the company's stock worth $279,000 after buying an additional 32 shares in the last quarter. Cambridge Investment Research Advisors Inc. increased its holdings in Lithia Motors by 1.5% during the 1st quarter. Cambridge Investment Research Advisors Inc. now owns 2,421 shares of the company's stock worth $711,000 after purchasing an additional 35 shares during the period. Benjamin Edwards Inc. increased its holdings in Lithia Motors by 5.6% during the 4th quarter. Benjamin Edwards Inc. now owns 700 shares of the company's stock worth $250,000 after purchasing an additional 37 shares during the period. CWM LLC raised its position in Lithia Motors by 30.1% in the 1st quarter. CWM LLC now owns 212 shares of the company's stock valued at $62,000 after purchasing an additional 49 shares in the last quarter. Finally, Wealth Enhancement Advisory Services LLC boosted its stake in shares of Lithia Motors by 8.2% in the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 844 shares of the company's stock valued at $302,000 after buying an additional 64 shares during the period.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on LAD. JPMorgan Chase & Co. decreased their price target on shares of Lithia Motors from $335.00 to $315.00 and set an "overweight" rating for the company in a research note on Tuesday, August 5th. Citigroup lifted their price objective on shares of Lithia Motors from $378.00 to $383.00 and gave the stock a "buy" rating in a research report on Tuesday, August 5th. Bank of America dropped their target price on Lithia Motors from $500.00 to $385.00 and set a "buy" rating on the stock in a report on Wednesday. The Goldman Sachs Group began coverage on Lithia Motors in a report on Tuesday, June 3rd. They set a "neutral" rating and a $340.00 price target for the company. Finally, Guggenheim cut their price objective 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. Eight equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat, Lithia Motors presently has an average rating of "Moderate Buy" and a consensus target price of $370.45.

Insider Buying and Selling

In other Lithia Motors news, Director Shauna Mcintyre sold 256 shares of the firm'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 completion of the sale, the director owned 1,376 shares of the company's stock, valued at approximately $403,236.80. This trade represents a 15.69% decrease in their ownership of the stock. 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

Shares of NYSE:LAD traded down $7.71 on Wednesday, reaching $337.15. The company's stock had a trading volume of 247,859 shares, compared to its average volume of 289,114. Lithia Motors, Inc. has a 52-week low of $255.32 and a 52-week high of $405.67. The stock has a market capitalization of $8.64 billion, a P/E ratio of 10.00, a PEG ratio of 0.53 and a beta of 1.31. The stock's 50-day moving average is $320.51 and its two-hundred day moving average is $313.85. The company has a debt-to-equity ratio of 1.24, a current ratio of 1.22 and a quick ratio of 0.29.

Lithia Motors (NYSE:LAD - Get Free Report) last announced its quarterly earnings data on Tuesday, July 29th. The company reported $10.24 EPS for the quarter, topping analysts' consensus estimates of $9.78 by $0.46. The company 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%. As a group, sell-side analysts forecast that Lithia Motors, Inc. will post 34.45 EPS for the current year.

Lithia Motors Dividend Announcement

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

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

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.