Values First Advisors Inc. Sells 846 Shares of Lithia Motors, Inc. $LAD

Key Points

• Values First Advisors Inc. reduced its holdings in Lithia Motors, Inc. by 40.6%, selling 846 shares in the second quarter.
• Lithia Motors announced a stock buyback program allowing for the repurchase of up to $750 million of outstanding shares, indicating management's belief in the stock's undervaluation.
• The company reported a Q2 EPS of $10.24, surpassing analyst estimates, and has set an estimated EPS of 34.45 for the current fiscal year.

Values First Advisors Inc. trimmed its holdings in shares of Lithia Motors, Inc. (NYSE:LAD - Free Report) by 40.6% in the second quarter, according to its most recent filing with the SEC. The firm owned 1,236 shares of the company's stock after selling 846 shares during the period. Values First Advisors Inc.'s holdings in Lithia Motors were worth $418,000 as of its most recent filing with the SEC.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the business. Praxis Investment Management Inc. bought a new position in shares of Lithia Motors during the 2nd quarter worth about $220,000. Bridges Investment Management Inc. lifted its holdings in shares of Lithia Motors by 5.9% during the 2nd quarter. Bridges Investment Management Inc. now owns 255,599 shares of the company's stock worth $86,346,000 after acquiring an additional 14,179 shares during the period. New York State Teachers Retirement System lifted its holdings in shares of Lithia Motors by 8.0% during the 2nd quarter. New York State Teachers Retirement System now owns 34,582 shares of the company's stock worth $11,682,000 after acquiring an additional 2,564 shares during the period. Bayforest Capital Ltd lifted its holdings in shares of Lithia Motors by 37.4% during the 2nd quarter. Bayforest Capital Ltd now owns 1,721 shares of the company's stock worth $581,000 after acquiring an additional 468 shares during the period. Finally, Envestnet Portfolio Solutions Inc. lifted its holdings in Lithia Motors by 232.0% during the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 3,390 shares of the company's stock valued at $1,145,000 after purchasing an additional 2,369 shares during the last quarter.

Lithia Motors Stock Performance

Shares of LAD stock opened at $305.64 on Friday. The company's fifty day simple moving average is $321.48 and its 200-day simple moving average is $315.39. The company has a quick ratio of 0.29, a current ratio of 1.22 and a debt-to-equity ratio of 1.24. The firm has a market cap of $7.84 billion, a PE ratio of 9.06, a P/E/G ratio of 0.63 and a beta of 1.28. Lithia Motors, Inc. has a 12 month low of $262.10 and a 12 month high of $405.67.

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 business had revenue of $9.58 billion for the quarter, compared to analyst estimates of $9.56 billion. Lithia Motors had a net margin of 2.39% and a return on equity of 13.21%. Equities research analysts expect that Lithia Motors, Inc. will post 34.45 EPS for the current fiscal year.

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

Lithia Motors Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, August 22nd. Shareholders of record on Friday, August 8th were given a dividend of $0.55 per share. 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 6.52%.

Insider Transactions at Lithia Motors

In other Lithia Motors news, Director Shauna Mcintyre sold 256 shares of the company's stock in a transaction on Thursday, July 31st. The shares were sold at an average price of $293.05, for a total transaction of $75,020.80. Following the sale, the director directly owned 1,376 shares of the company's stock, valued at approximately $403,236.80. This represents a 15.69% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Company insiders own 0.87% of the company's stock.

Analysts Set New Price Targets

LAD has been the subject of a number of analyst reports. Citigroup boosted their price objective on shares of Lithia Motors from $378.00 to $383.00 and gave the company a "buy" rating in a report on Tuesday, August 5th. Bank of America decreased their price objective on shares of Lithia Motors from $500.00 to $385.00 and set a "buy" rating for the company in a report on Wednesday, September 10th. Guggenheim reduced their price target on shares of Lithia Motors from $383.00 to $380.00 and set a "buy" rating for the company in a report on Monday, August 11th. JPMorgan Chase & Co. upped their price target on shares of Lithia Motors from $320.00 to $350.00 and gave the company an "overweight" rating in a report on Tuesday. Finally, Jefferies Financial Group began coverage on shares of Lithia Motors in a report on Thursday, September 4th. They issued a "buy" rating and a $400.00 price target for the company. Eight investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $381.00.

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.

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