Lithia Motors, Inc. $LAD Shares Sold by Shellback Capital LP

Key Points

• Shellback Capital LP sold 49,000 shares of Lithia Motors, reducing its holdings by 92.2% to just 4,122 shares valued at approximately $1.21 million.
• Analysts have varying target price predictions for Lithia Motors, with Wells Fargo lowering theirs from $364 to $317, while Bank of America raised theirs from $430 to $500, indicating mixed sentiments about the stock's future.
• Lithia Motors has initiated a $750 million stock buyback plan, allowing the repurchase of up to 9% of its outstanding shares, which signals confidence in the company's valuation from its Board of Directors.

Shellback Capital LP cut its stake in Lithia Motors, Inc. (NYSE:LAD - Free Report) by 92.2% in the first quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 4,122 shares of the company's stock after selling 49,000 shares during the quarter. Shellback Capital LP's holdings in Lithia Motors were worth $1,210,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also modified their holdings of the company. Wealth Enhancement Advisory Services LLC increased its stake in shares of Lithia Motors by 118.1% in the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 1,841 shares of the company's stock worth $541,000 after acquiring an additional 997 shares during the last quarter. Cambridge Investment Research Advisors Inc. grew its holdings in shares of 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. Vident Advisory LLC grew its holdings in shares of 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 purchasing an additional 32 shares during the period. 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 worth $74,000 after purchasing an additional 85 shares during the period. Finally, Invesco Ltd. grew its holdings in shares of Lithia Motors by 4.4% during the 1st quarter. Invesco Ltd. now owns 119,466 shares of the company's stock worth $35,068,000 after purchasing an additional 5,005 shares during the period.

Lithia Motors Trading Down 1.7%

Lithia Motors stock traded down $5.71 during midday trading on Friday, reaching $338.28. 77,363 shares of the stock traded hands, compared to its average volume of 334,908. The company has a 50-day simple moving average of $320.31 and a two-hundred day simple moving average of $313.82. Lithia Motors, Inc. has a 12-month low of $262.10 and a 12-month high of $405.67. The firm has a market cap of $8.67 billion, a PE ratio of 10.03, a price-to-earnings-growth ratio of 0.52 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.

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. Lithia Motors had a return on equity of 13.21% and a net margin of 2.39%.The company had revenue of $9.58 billion during the quarter, compared to analysts' expectations of $9.56 billion. 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 declared a quarterly dividend, which was paid on Friday, August 22nd. Shareholders of record on Friday, August 8th were given 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 yield of 0.7%. Lithia Motors's dividend payout ratio (DPR) is currently 6.52%.

Lithia Motors announced that its board has initiated a share repurchase plan on Tuesday, August 26th that authorizes the company to repurchase $750.00 million in outstanding shares. This repurchase authorization authorizes the company to buy up to 9% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company's board of directors believes its shares are undervalued.

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on the company. JPMorgan Chase & Co. lowered their price target on Lithia Motors from $335.00 to $315.00 and set an "overweight" rating for the company in a report on Tuesday, August 5th. Bank of America lowered their price target on Lithia Motors from $500.00 to $385.00 and set a "buy" rating for the company in a report on Wednesday. Wells Fargo & Company lowered their price target on Lithia Motors from $364.00 to $317.00 and set an "equal weight" rating for the company in a report on Wednesday, July 30th. Guggenheim lowered their price target on Lithia Motors from $383.00 to $380.00 and set a "buy" rating for the company in a report on Monday, August 11th. Finally, Jefferies Financial Group initiated coverage on Lithia Motors in a report on Thursday, September 4th. They set a "buy" rating and a $400.00 target price for the company. Eight 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 currently has a consensus rating of "Moderate Buy" and an average target price of $370.45.

Insider Transactions at Lithia Motors

In other Lithia Motors news, Director Shauna Mcintyre sold 256 shares of the stock in a transaction dated 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. This trade represents a 15.69% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.87% of the stock is owned by corporate insiders.

Lithia Motors 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.