Royal London Asset Management Ltd. Has $22.20 Million Holdings in Lithia Motors, Inc. $LAD

Key Points

• Royal London Asset Management cut its Lithia Motors stake by 67.8% in the second quarter, selling 160,649 shares and retaining 76,408 shares valued at approximately $22.2 million.
• Lithia Motors reported quarterly EPS of $10.03, exceeding estimates of $8.73, while revenue rose 2.2% year over year to $9.79 billion. The company also authorized a $500 million share-repurchase program and increased its quarterly dividend to $0.70.
• Analyst sentiment remains positive, with six Buy and five Hold ratings; the stock carries a “Moderate Buy” consensus and an average price target of $436.33, above its reported $370.63 share price.

Royal London Asset Management Ltd. trimmed its holdings in Lithia Motors, Inc. (NYSE:LAD - Free Report) by 67.8% in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 76,408 shares of the company's stock after selling 160,649 shares during the quarter. Royal London Asset Management Ltd. owned 0.35% of Lithia Motors worth $22,196,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors and hedge funds have also bought and sold shares of the company. BlackRock Inc. bought a new stake in Lithia Motors in the 2nd quarter valued at $696,482,000. Dimensional Fund Advisors LP raised its position in shares of Lithia Motors by 3.2% during the first quarter. Dimensional Fund Advisors LP now owns 1,389,870 shares of the company's stock valued at $347,074,000 after buying an additional 43,087 shares during the last quarter. River Road Asset Management LLC raised its position in shares of Lithia Motors by 33.6% during the fourth quarter. River Road Asset Management LLC now owns 742,677 shares of the company's stock valued at $246,814,000 after buying an additional 186,628 shares during the last quarter. Canada Pension Plan Investment Board lifted its stake in shares of Lithia Motors by 5.9% in the second quarter. Canada Pension Plan Investment Board now owns 612,377 shares of the company's stock valued at $206,873,000 after buying an additional 33,966 shares during the period. Finally, Hotchkis & Wiley Capital Management LLC grew its position in Lithia Motors by 3.6% during the third quarter. Hotchkis & Wiley Capital Management LLC now owns 426,120 shares of the company's stock worth $134,654,000 after buying an additional 14,781 shares in the last quarter.

Lithia Motors Stock Up 0.1%

Shares of LAD opened at $370.63 on Monday. Lithia Motors, Inc. has a 12 month low of $239.78 and a 12 month high of $439.49. The company has a quick ratio of 0.21, a current ratio of 1.00 and a debt-to-equity ratio of 1.46. The company has a 50-day moving average price of $344.32 and a two-hundred day moving average price of $301.65. The stock has a market cap of $8.15 billion, a price-to-earnings ratio of 12.29, a P/E/G ratio of 0.78 and a beta of 1.22.

Lithia Motors (NYSE:LAD - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The company reported $10.03 EPS for the quarter, beating the consensus estimate of $8.73 by $1.30. Lithia Motors had a return on equity of 12.16% and a net margin of 1.88%.The business had revenue of $9.79 billion for the quarter, compared to analyst estimates of $9.64 billion. During the same quarter in the previous year, the firm earned $10.24 EPS. Lithia Motors's quarterly revenue was up 2.2% on a year-over-year basis. Equities analysts predict that Lithia Motors, Inc. will post 36 EPS for the current fiscal year.

Lithia Motors announced that its board has authorized a share repurchase program on Tuesday, May 26th that permits the company to buyback $500.00 million in shares. This buyback authorization permits the company to reacquire up to 7.9% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's leadership believes its stock is undervalued.

Lithia Motors Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 21st. Stockholders of record on Friday, August 7th were paid a $0.70 dividend. The ex-dividend date was Friday, August 7th. This represents a $2.80 annualized dividend and a dividend yield of 0.8%. This is a boost from Lithia Motors's previous quarterly dividend of $0.57. Lithia Motors's dividend payout ratio is presently 9.29%.

Insider Buying and Selling at Lithia Motors

In related news, Director Shauna Mcintyre sold 165 shares of the stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $305.64, for a total transaction of $50,430.60. Following the completion of the sale, the director owned 1,681 shares in the company, valued at $513,780.84. This trade represents a 8.94% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Insiders own 1.08% of the company's stock.

Analysts Set New Price Targets

Several research firms have commented on LAD. Wall Street Zen raised Lithia Motors from a "sell" rating to a "hold" rating in a report on Saturday, August 1st. Barclays lifted their price objective on Lithia Motors from $360.00 to $415.00 and gave the stock an "overweight" rating in a report on Wednesday, August 19th. Wells Fargo & Company upped their target price on Lithia Motors from $306.00 to $395.00 and gave the company an "equal weight" rating in a research note on Thursday, July 30th. Bank of America raised their target price on Lithia Motors from $350.00 to $417.00 and gave the stock a "buy" rating in a research report on Thursday, July 9th. Finally, Citigroup lifted their price target on shares of Lithia Motors from $365.00 to $455.00 and gave the stock a "buy" rating in a research note on Monday, August 3rd. Six equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $436.33.

About Lithia Motors

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.

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.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source