Wellington Management Group LLP Increases Position in Lithia Motors, Inc. $LAD

Key Points

• Wellington Management Group LLP increased its stake in Lithia Motors, Inc. by 16.1%, bringing its total holdings to approximately $3.59 million in the first quarter.
• Lithia Motors has announced a new $750 million stock repurchase program, allowing it to reacquire up to 9% of its shares, indicating management believes the stock is undervalued.
• The company reported earnings per share of $10.24 for the last quarter, exceeding analysts' expectations, along with a revenue of $9.58 billion, outpacing the forecast of $9.56 billion.

Wellington Management Group LLP boosted its holdings in shares of Lithia Motors, Inc. (NYSE:LAD - Free Report) by 16.1% in the first quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 12,226 shares of the company's stock after buying an additional 1,698 shares during the quarter. Wellington Management Group LLP's holdings in Lithia Motors were worth $3,589,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also modified their holdings of LAD. Vident Advisory LLC increased 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 valued at $279,000 after purchasing an additional 32 shares in the last quarter. Cambridge Investment Research Advisors Inc. grew its position in Lithia Motors by 1.5% during the first quarter. Cambridge Investment Research Advisors Inc. now owns 2,421 shares of the company's stock valued at $711,000 after buying an additional 35 shares during the period. Benjamin Edwards Inc. increased its holdings in Lithia Motors by 5.6% in the fourth quarter. Benjamin Edwards Inc. now owns 700 shares of the company's stock valued at $250,000 after buying an additional 37 shares in the last quarter. Mariner LLC raised its position in shares of Lithia Motors by 2.9% in the fourth quarter. Mariner LLC now owns 1,475 shares of the company's stock worth $527,000 after acquiring an additional 42 shares during the period. Finally, CWM LLC boosted its stake in shares of Lithia Motors by 30.1% during the 1st quarter. CWM LLC now owns 212 shares of the company's stock worth $62,000 after acquiring an additional 49 shares in the last quarter.

Analysts Set New Price Targets

A number of analysts have recently commented on LAD shares. Wells Fargo & Company cut their price objective on Lithia Motors from $364.00 to $317.00 and set an "equal weight" rating for the company in a research report on Wednesday, July 30th. Bank of America lifted their price target on Lithia Motors from $430.00 to $500.00 and gave the stock a "buy" rating in a report on Monday, June 16th. JPMorgan Chase & Co. cut their target price on Lithia Motors from $335.00 to $315.00 and set an "overweight" rating for the company in a research note on Tuesday, August 5th. Citigroup lifted their target price 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. Finally, The Goldman Sachs Group started coverage on shares of Lithia Motors in a research report on Tuesday, June 3rd. They set a "neutral" rating and a $340.00 price target on the stock. Seven investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $379.00.

Insider Buying and Selling at Lithia Motors

In other news, Director Shauna Mcintyre sold 256 shares of the firm's stock in a transaction 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 completion of the sale, the director owned 1,376 shares in the company, valued at approximately $403,236.80. This trade represents a 15.69% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 0.87% of the stock is currently owned by corporate insiders.

Lithia Motors Stock Down 0.4%

NYSE:LAD traded down $1.48 during midday trading on Wednesday, hitting $331.20. 112,230 shares of the company were exchanged, compared to its average volume of 337,678. 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, Inc. has a fifty-two week low of $255.32 and a fifty-two week high of $405.67. The company has a market capitalization of $8.49 billion, a PE ratio of 9.86, a price-to-earnings-growth ratio of 0.52 and a beta of 1.31. The company has a fifty day simple moving average of $320.42 and a 200 day simple moving average of $314.62.

Lithia Motors (NYSE:LAD - Get Free Report) last announced its 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 firm had revenue of $9.58 billion during the quarter, compared to analysts' expectations of $9.56 billion. As a group, equities analysts anticipate that Lithia Motors, Inc. will post 34.45 earnings per share for the current fiscal year.

Lithia Motors Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, August 22nd. Stockholders of record on Friday, August 8th were issued 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 dividend yield of 0.7%. Lithia Motors's payout ratio is presently 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.

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.