Woodline Partners LP Buys Shares of 44,713 Lithia Motors, Inc. $LAD

Key Points

• Woodline Partners LP invested approximately $13.13 million in Lithia Motors, acquiring 44,713 shares, and now holds about 0.17% of the company.
• Analysts have set a range of price targets for Lithia Motors, with Wells Fargo decreasing their target from $364 to $317, while Jefferies maintained a buy rating with a target of $400.
• Lithia Motors recently announced a share buyback plan worth $750 million, signaling management's belief that the company's shares are undervalued.

Woodline Partners LP purchased a new position in Lithia Motors, Inc. (NYSE:LAD - Free Report) during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm purchased 44,713 shares of the company's stock, valued at approximately $13,125,000. Woodline Partners LP owned about 0.17% of Lithia Motors as of its most recent filing with the Securities and Exchange Commission.

A number of other large investors have also recently bought and sold shares of LAD. Abrams Capital Management L.P. raised its position in shares of Lithia Motors by 2.2% during the 1st quarter. Abrams Capital Management L.P. now owns 2,444,678 shares of the company's stock worth $717,611,000 after purchasing an additional 53,490 shares during the period. Coppell Advisory Solutions LLC increased its position in Lithia Motors by 10,136,710.0% in the first quarter. Coppell Advisory Solutions LLC now owns 2,027,362 shares of the company's stock worth $595,112,000 after buying an additional 2,027,342 shares during the period. Dimensional Fund Advisors LP lifted its stake in Lithia Motors by 6.1% in the first quarter. Dimensional Fund Advisors LP now owns 1,267,519 shares of the company's stock valued at $372,053,000 after buying an additional 72,980 shares during the last quarter. Steadfast Capital Management LP grew its position in shares of Lithia Motors by 137.8% during the fourth quarter. Steadfast Capital Management LP now owns 460,298 shares of the company's stock worth $164,524,000 after acquiring an additional 266,715 shares during the last quarter. Finally, Hotchkis & Wiley Capital Management LLC grew its position in shares of Lithia Motors by 8.8% during the first 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 during the last quarter.

Lithia Motors Price Performance

Shares of NYSE:LAD traded down $3.52 on Monday, reaching $330.54. 166,186 shares of the company traded hands, compared to its average volume of 334,854. The stock has a market capitalization of $8.47 billion, a PE ratio of 9.80, a P/E/G 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. The company's 50 day moving average is $319.94 and its 200-day moving average is $313.31. Lithia Motors, Inc. has a fifty-two week low of $262.10 and a fifty-two week high of $405.67.

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, topping 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 analyst estimates of $9.56 billion. As a group, analysts anticipate that Lithia Motors, Inc. will post 34.45 earnings per share for the current fiscal year.

Lithia Motors Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, August 22nd. Shareholders of record on Friday, August 8th were issued a $0.55 dividend. This represents a $2.20 annualized dividend and a dividend yield of 0.7%. The ex-dividend date was Friday, August 8th. Lithia Motors's dividend payout ratio (DPR) is presently 6.52%.

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

Analyst Upgrades and Downgrades

Several research analysts have commented on LAD shares. Guggenheim decreased 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. Wells Fargo & Company decreased their price objective 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. 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 note on Wednesday, September 10th. The Goldman Sachs Group started coverage on Lithia Motors in a report on Tuesday, June 3rd. They set a "neutral" rating and a $340.00 price target on the stock. Finally, Jefferies Financial Group started coverage on shares of Lithia Motors in a report on Thursday, September 4th. They issued a "buy" rating and a $400.00 price objective for the company. Eight research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, Lithia Motors presently has an average rating of "Moderate Buy" and an average price target of $370.45.

Insider Buying and Selling

In other news, Director Shauna Mcintyre sold 256 shares of the stock in a transaction on Thursday, July 31st. The stock was 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 $403,236.80. This represents a 15.69% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Corporate insiders own 0.87% of the company's stock.

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.