Voya Investment Management LLC Boosts Stake in Lithia Motors, Inc. $LAD

Key Points

• Voya Investment Management LLC increased its stake in Lithia Motors by 124.3%, owning 16,392 shares valued at approximately $4.81 million as of the latest SEC filing.
• Lithia Motors reported $10.24 earnings per share (EPS) for the quarter, exceeding analyst expectations of $9.78, with revenues totaling $9.58 billion for the period.
• The company announced a $750 million stock repurchase plan allowing it to buy back up to 9% of its outstanding shares, signaling confidence in the stock's value.

Voya Investment Management LLC increased its holdings in Lithia Motors, Inc. (NYSE:LAD - Free Report) by 124.3% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 16,392 shares of the company's stock after acquiring an additional 9,083 shares during the period. Voya Investment Management LLC owned about 0.06% of Lithia Motors worth $4,812,000 at the end of the most recent quarter.

A number of other hedge funds have also added to or reduced their stakes in the stock. Abrams Capital Management L.P. lifted its holdings in shares of Lithia Motors by 2.2% in the first quarter. Abrams Capital Management L.P. now owns 2,444,678 shares of the company's stock valued at $717,611,000 after purchasing an additional 53,490 shares in the last quarter. Coppell Advisory Solutions LLC raised its position in Lithia Motors by 10,136,710.0% in the 1st quarter. Coppell Advisory Solutions LLC now owns 2,027,362 shares of the company's stock valued at $595,112,000 after buying an additional 2,027,342 shares during the last quarter. Dimensional Fund Advisors LP boosted its holdings in Lithia Motors by 6.1% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,267,519 shares of the company's stock worth $372,053,000 after acquiring an additional 72,980 shares during the last quarter. Hotchkis & Wiley Capital Management LLC grew its stake in shares of Lithia Motors by 8.8% in the 1st quarter. Hotchkis & Wiley Capital Management LLC now owns 376,467 shares of the company's stock worth $110,508,000 after acquiring an additional 30,420 shares in the last quarter. Finally, Advent International L.P. grew its stake in shares of Lithia Motors by 32.1% in the 1st quarter. Advent International L.P. now owns 286,786 shares of the company's stock worth $84,183,000 after acquiring an additional 69,635 shares in the last quarter.

Lithia Motors Trading Down 1.5%

Lithia Motors stock traded down $5.18 during trading hours on Friday, reaching $332.15. The stock had a trading volume of 365,100 shares, compared to its average volume of 266,131. The company has a fifty day simple moving average of $318.28 and a 200-day simple moving average of $313.67. Lithia Motors, Inc. has a 52 week low of $262.10 and a 52 week high of $405.67. The stock has a market cap of $8.52 billion, a PE ratio of 9.85, a PEG ratio of 0.68 and a beta of 1.31. The company has a debt-to-equity ratio of 1.24, a current ratio of 1.22 and a quick ratio of 0.29.

Lithia Motors (NYSE:LAD - Get Free Report) last announced its quarterly earnings results on Tuesday, July 29th. The company reported $10.24 earnings per share (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 for the quarter, compared to the consensus estimate of $9.56 billion. Analysts forecast that Lithia Motors, Inc. will post 34.45 EPS for the current fiscal year.

Lithia Motors announced that its Board of Directors has approved a share buyback plan on Tuesday, August 26th that allows the company to buyback $750.00 million in shares. This buyback authorization allows the company to purchase up to 9% of its shares through open market purchases. Shares buyback plans are typically an indication that the company's management believes its shares are undervalued.

Lithia Motors Dividend Announcement

The business also recently disclosed 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. This represents a $2.20 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend was Friday, August 8th. Lithia Motors's dividend payout ratio (DPR) is 6.52%.

Insider Buying and Selling

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

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on LAD shares. Jefferies Financial Group began coverage on Lithia Motors in a research note on Thursday, September 4th. They set a "buy" rating and a $400.00 target price on the stock. Guggenheim dropped their target price on shares of Lithia Motors from $383.00 to $380.00 and set a "buy" rating for the company in a research report on Monday, August 11th. Citigroup increased their price objective on Lithia Motors from $378.00 to $383.00 and gave the company a "buy" rating in a research report on Tuesday, August 5th. Bank of America dropped their target price on Lithia Motors from $500.00 to $385.00 and set a "buy" rating for the company in a research report on Wednesday, September 10th. Finally, Wells Fargo & Company decreased their price target on shares of Lithia Motors from $364.00 to $317.00 and set an "equal weight" rating on the stock in a research note on Wednesday, July 30th. Eight investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $370.45.

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.