Woodline Partners LP Makes New $13.13 Million Investment in 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) in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 44,713 shares of the company's stock, valued at approximately $13,125,000. Woodline Partners LP owned approximately 0.17% of Lithia Motors at the end of the most recent reporting period.

A number of other institutional investors also recently bought and sold shares of the stock. Vident Advisory LLC raised its stake in Lithia Motors by 4.3% in the fourth quarter. Vident Advisory LLC now owns 780 shares of the company's stock worth $279,000 after buying an additional 32 shares in the last quarter. Cambridge Investment Research Advisors Inc. grew its holdings in Lithia Motors by 1.5% in the first quarter. Cambridge Investment Research Advisors Inc. now owns 2,421 shares of the company's stock worth $711,000 after purchasing an additional 35 shares during the period. CWM LLC increased its stake in shares of Lithia Motors by 30.1% during the first quarter. CWM LLC now owns 212 shares of the company's stock valued at $62,000 after purchasing an additional 49 shares in the last quarter. Wealth Enhancement Advisory Services LLC increased its stake in shares of Lithia Motors by 8.2% during the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 844 shares of the company's stock valued at $302,000 after purchasing an additional 64 shares in the last quarter. Finally, ProShare Advisors LLC increased its stake in shares of Lithia Motors by 6.8% during the fourth quarter. ProShare Advisors LLC now owns 1,245 shares of the company's stock valued at $445,000 after purchasing an additional 79 shares in the last quarter.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on LAD shares. Citigroup raised their target price on shares of Lithia Motors from $378.00 to $383.00 and gave the company a "buy" rating in a research note on Tuesday, August 5th. Jefferies Financial Group started coverage on shares of Lithia Motors in a research note on Thursday, September 4th. They set a "buy" rating and a $400.00 target price for the company. The Goldman Sachs Group started coverage on shares of Lithia Motors in a research note on Tuesday, June 3rd. They set a "neutral" rating and a $340.00 target price for the company. Bank of America decreased their target price on shares of Lithia Motors from $500.00 to $385.00 and set a "buy" rating for the company in a research note on Wednesday, September 10th. Finally, JPMorgan Chase & Co. decreased their target price on shares of Lithia Motors from $335.00 to $315.00 and set an "overweight" rating for the company in a research note on Tuesday, August 5th. Eight analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, Lithia Motors has an average rating of "Moderate Buy" and an average price target of $370.45.

Insiders Place Their Bets

In related news, Director Shauna Mcintyre sold 256 shares of the stock in a transaction that occurred 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 transaction, 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.87% of the stock is currently owned by company insiders.

Lithia Motors Stock Performance

Lithia Motors stock traded up $3.40 during midday trading on Wednesday, reaching $335.49. 17,252 shares of the company traded hands, compared to its average volume of 332,211. The firm has a market capitalization of $8.60 billion, a price-to-earnings ratio of 9.94, a price-to-earnings-growth ratio of 0.67 and a beta of 1.31. The business has a 50 day moving average of $319.37 and a two-hundred day moving average of $313.35. Lithia Motors, Inc. has a 12 month low of $262.10 and a 12 month high of $405.67. 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 issued its quarterly earnings data on Tuesday, July 29th. The company reported $10.24 earnings per share for the quarter, beating analysts' consensus estimates of $9.78 by $0.46. The company had revenue of $9.58 billion for the quarter, compared to the consensus estimate of $9.56 billion. Lithia Motors had a net margin of 2.39% and a return on equity of 13.21%. As a group, research analysts predict that Lithia Motors, Inc. will post 34.45 earnings per share for the current year.

Lithia Motors Announces Dividend

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

Lithia Motors declared that its Board of Directors has authorized a share 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 buy up to 9% of its stock through open market purchases. Stock buyback plans are usually an indication that the company's leadership believes its shares are undervalued.

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.