Strs Ohio Invests $1.85 Million in Lithia Motors, Inc. $LAD

Key Points

• Strs Ohio has made a new investment in Lithia Motors, acquiring 6,308 shares valued at approximately $1.85 million.
• Lithia Motors recently declared a $750 million share repurchase program, indicating management's belief that its stock is undervalued.
• The company reported earnings of $10.24 per share, surpassing analysts' expectations of $9.78 in the latest quarter.

Strs Ohio bought a new position in Lithia Motors, Inc. (NYSE:LAD - Free Report) in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor bought 6,308 shares of the company's stock, valued at approximately $1,852,000.

Several other hedge funds have also bought and sold shares of LAD. Wealth Enhancement Advisory Services LLC raised its stake in Lithia Motors by 118.1% in the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 1,841 shares of the company's stock valued at $541,000 after acquiring an additional 997 shares during the period. Cambridge Investment Research Advisors Inc. boosted its stake in Lithia Motors by 1.5% in 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 in the last quarter. Vident Advisory LLC boosted its position in shares of Lithia Motors by 4.3% during the fourth quarter. Vident Advisory LLC now owns 780 shares of the company's stock valued at $279,000 after buying an additional 32 shares during the last quarter. GAMMA Investing LLC lifted its position 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 buying an additional 85 shares in the last quarter. Finally, Invesco Ltd. increased its stake in Lithia Motors by 4.4% in the 1st quarter. Invesco Ltd. now owns 119,466 shares of the company's stock worth $35,068,000 after acquiring an additional 5,005 shares during the last quarter.

Lithia Motors Price Performance

Lithia Motors stock traded down $5.18 during mid-day trading on Friday, hitting $332.15. 365,100 shares of the company traded hands, compared to its average volume of 266,131. The stock has a market cap of $8.52 billion, a price-to-earnings ratio of 9.85, a price-to-earnings-growth ratio of 0.68 and a beta of 1.31. The company has a debt-to-equity ratio of 1.24, a quick ratio of 0.29 and a current ratio of 1.22. Lithia Motors, Inc. has a one year low of $262.10 and a one year high of $405.67. The stock has a fifty day moving average price of $318.28 and a 200-day moving average price of $313.67.

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 firm had revenue of $9.58 billion for 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%. On average, equities analysts predict that Lithia Motors, Inc. will post 34.45 earnings per share for the current fiscal year.

Lithia Motors Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 22nd. Investors of record on Friday, August 8th were paid a $0.55 dividend. This represents a $2.20 annualized dividend and a yield of 0.7%. The ex-dividend date of this dividend was Friday, August 8th. Lithia Motors's dividend payout ratio is currently 6.52%.

Lithia Motors announced that its board has authorized a stock buyback plan on Tuesday, August 26th that permits the company to repurchase $750.00 million in outstanding shares. This repurchase authorization permits the company to reacquire up to 9% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company's board believes its shares are undervalued.

Wall Street Analyst Weigh In

A number of research firms have commented on LAD. Jefferies Financial Group started coverage on Lithia Motors in a research note on Thursday, September 4th. They issued a "buy" rating and a $400.00 price target for the company. Guggenheim dropped their price objective on Lithia Motors from $383.00 to $380.00 and set a "buy" rating for the company in a research note on Monday, August 11th. Wells Fargo & Company reduced their target price 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. JPMorgan Chase & Co. lowered their price target on Lithia Motors from $335.00 to $315.00 and set an "overweight" rating on the stock in a report on Tuesday, August 5th. Finally, Bank of America cut their target price on Lithia Motors from $500.00 to $385.00 and set a "buy" rating on the stock in a research report on Wednesday, September 10th. Eight analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $370.45.

Insider Buying and Selling at Lithia Motors

In related news, Director Shauna Mcintyre sold 256 shares of the firm's stock in a transaction dated Thursday, July 31st. The stock was sold at an average price of $293.05, for a total transaction of $75,020.80. Following the completion of the transaction, the director directly owned 1,376 shares in the company, 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 through this link. Corporate insiders own 0.87% of the company's stock.

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.