Trexquant Investment LP Buys New Position in Lithia Motors, Inc. $LAD

Key Points

• Trexquant Investment LP has acquired a new stake in Lithia Motors, Inc., investing approximately $3.45 million to purchase 11,740 shares during the first quarter.
• Lithia Motors reported strong quarterly earnings of $10.24 per share, exceeding analyst expectations of $9.78, along with a revenue of $9.58 billion, slightly above the estimated $9.56 billion.
• The company's Board of Directors has authorized a $750 million stock buyback program, indicating confidence that the shares may be undervalued.

Trexquant Investment LP acquired a new position in Lithia Motors, Inc. (NYSE:LAD - Free Report) during the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund acquired 11,740 shares of the company's stock, valued at approximately $3,446,000.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. NBC Securities Inc. acquired a new position in shares of Lithia Motors in the first quarter worth approximately $59,000. UMB Bank n.a. increased its holdings in Lithia Motors by 63.7% in the first quarter. UMB Bank n.a. now owns 203 shares of the company's stock worth $60,000 after purchasing an additional 79 shares in the last quarter. CWM LLC increased its holdings in Lithia Motors by 30.1% in the first quarter. CWM LLC now owns 212 shares of the company's stock worth $62,000 after purchasing an additional 49 shares in the last quarter. GAMMA Investing LLC increased its holdings in Lithia Motors by 50.9% in the first quarter. GAMMA Investing LLC now owns 252 shares of the company's stock worth $74,000 after purchasing an additional 85 shares in the last quarter. Finally, Caitong International Asset Management Co. Ltd bought a new stake in Lithia Motors in the first quarter worth approximately $143,000.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on LAD. Jefferies Financial Group began coverage on Lithia Motors in a report on Thursday. They issued a "buy" rating and a $400.00 target price for the company. Bank of America lifted their target price on Lithia Motors from $430.00 to $500.00 and gave the stock a "buy" rating in a report on Monday, June 16th. The Goldman Sachs Group began coverage on Lithia Motors in a report on Tuesday, June 3rd. They issued a "neutral" rating and a $340.00 target price for the company. Citigroup lifted their target price on Lithia Motors from $378.00 to $383.00 and gave the stock a "buy" rating in a report on Tuesday, August 5th. Finally, Guggenheim lowered their target price on Lithia Motors from $383.00 to $380.00 and set a "buy" rating for the company 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 data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $380.91.

Lithia Motors Stock Up 0.3%

Shares of NYSE LAD traded up $1.01 during midday trading on Friday, hitting $341.10. 187,013 shares of the stock traded hands, compared to its average volume of 288,412. The company has a market cap of $8.74 billion, a PE ratio of 10.11, a P/E/G ratio of 0.53 and a beta of 1.31. Lithia Motors, Inc. has a one year low of $255.32 and a one year high of $405.67. The business has a 50 day moving average price of $320.73 and a two-hundred day moving average price of $313.87. 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 (NYSE:LAD - Get Free Report) last released its quarterly earnings data on Tuesday, July 29th. The company reported $10.24 EPS for the quarter, beating the consensus estimate of $9.78 by $0.46. The firm had revenue of $9.58 billion during the quarter, compared to the consensus estimate of $9.56 billion. Lithia Motors had a return on equity of 13.21% and a net margin of 2.39%. On average, equities analysts predict that Lithia Motors, Inc. will post 34.45 EPS for the current year.

Lithia Motors Dividend Announcement

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

Lithia Motors declared that its Board of Directors has initiated a stock buyback plan on Tuesday, August 26th that authorizes the company to buyback $750.00 million in outstanding shares. This buyback authorization authorizes the company to reacquire up to 9% of its shares through open market purchases. Shares buyback plans are typically an indication that the company's leadership believes its shares are undervalued.

Insider Activity

In related news, Director Shauna Mcintyre sold 256 shares of Lithia Motors stock in a transaction that occurred on Thursday, July 31st. The stock was sold at an average price of $293.05, for a total transaction of $75,020.80. Following the transaction, the director owned 1,376 shares of the company's stock, valued at $403,236.80. The trade was a 15.69% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 0.87% of the stock is currently owned by 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.