Lithia Motors (NYSE:LAD) Director Congdon Stacy Loretz Sells 75 Shares

Key Points

• Director Stacy Congdon Loretz sold 75 Lithia Motors shares at an average price of $370.73, generating $27,804.75. The Rule 10b5-1 transaction reduced her direct holdings by 3.16% to 2,300 shares.
• Lithia Motors recently exceeded quarterly earnings expectations, reporting $10.03 EPS versus the $8.73 consensus and $9.79 billion in revenue, up 2.2% year over year.
• The company raised its quarterly dividend to $0.70 per share and authorized a $500 million share-repurchase program. Analysts maintain a “Moderate Buy” consensus with an average price target of $436.33.

Lithia Motors, Inc. (NYSE:LAD - Get Free Report) Director Stacy Congdon sold 75 shares of the business's stock in a transaction on Friday, September 11th. The shares were sold at an average price of $370.73, for a total transaction of $27,804.75. Following the completion of the sale, the director directly owned 2,300 shares in the company, valued at $852,679. This trade represents a 3.16% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Lithia Motors Price Performance

Shares of NYSE:LAD traded up $2.59 during midday trading on Monday, reaching $360.61. 175,532 shares of the company's stock were exchanged, compared to its average volume of 303,552. The company has a debt-to-equity ratio of 1.46, a quick ratio of 0.21 and a current ratio of 1.00. The company's 50 day simple moving average is $359.28 and its two-hundred day simple moving average is $306.47. Lithia Motors, Inc. has a 12 month low of $239.78 and a 12 month high of $439.49. The firm has a market capitalization of $7.93 billion, a PE ratio of 11.96, a price-to-earnings-growth ratio of 0.75 and a beta of 1.23.

Lithia Motors (NYSE:LAD - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The company reported $10.03 earnings per share (EPS) for the quarter, topping the consensus estimate of $8.73 by $1.30. Lithia Motors had a net margin of 1.88% and a return on equity of 12.16%. The firm had revenue of $9.79 billion during the quarter, compared to analyst estimates of $9.64 billion. During the same quarter in the prior year, the business posted $10.24 earnings per share. The company's quarterly revenue was up 2.2% compared to the same quarter last year. Equities research analysts expect that Lithia Motors, Inc. will post 36 earnings per share for the current fiscal year.

Lithia Motors Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 21st. Stockholders of record on Friday, August 7th were issued a $0.70 dividend. This represents a $2.80 annualized dividend and a dividend yield of 0.8%. The ex-dividend date of this dividend was Friday, August 7th. This is a positive change from Lithia Motors's previous quarterly dividend of $0.57. Lithia Motors's payout ratio is currently 9.29%.

Lithia Motors announced that its Board of Directors has initiated a share repurchase program on Tuesday, May 26th that permits the company to buyback $500.00 million in shares. This buyback authorization permits the company to buy up to 7.9% of its stock through open market purchases. Stock buyback programs are generally a sign that the company's leadership believes its stock is undervalued.

Hedge Funds Weigh In On Lithia Motors

Several institutional investors and hedge funds have recently made changes to their positions in the company. Clearstead Advisors LLC lifted its holdings in Lithia Motors by 111.4% during the fourth quarter. Clearstead Advisors LLC now owns 93 shares of the company's stock worth $31,000 after acquiring an additional 49 shares in the last quarter. Addison Advisors LLC acquired a new position in shares of Lithia Motors during the second quarter worth about $30,000. Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in shares of Lithia Motors during the 2nd quarter worth approximately $30,000. Versant Capital Management Inc increased its stake in Lithia Motors by 1,311.1% in the 2nd quarter. Versant Capital Management Inc now owns 127 shares of the company's stock valued at $37,000 after buying an additional 118 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd raised its holdings in Lithia Motors by 225.5% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 166 shares of the company's stock worth $55,000 after acquiring an additional 115 shares in the last quarter.

Analyst Ratings Changes

LAD has been the subject of several recent analyst reports. Barclays raised their price objective on shares of Lithia Motors from $360.00 to $415.00 and gave the stock an "overweight" rating in a report on Wednesday, August 19th. JPMorgan Chase & Co. boosted their price objective on Lithia Motors from $325.00 to $340.00 and gave the stock a "neutral" rating in a research note on Tuesday, August 4th. Wells Fargo & Company raised their price target on shares of Lithia Motors from $306.00 to $395.00 and gave the company an "equal weight" rating in a report on Thursday, July 30th. Weiss Ratings upgraded Lithia Motors from a "hold (c)" rating to a "hold (c+)" rating in a research report on Tuesday, August 4th. Finally, Wall Street Zen raised Lithia Motors from a "sell" rating to a "hold" rating in a research note on Saturday, August 1st. Six investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $436.33.

About Lithia Motors

Lithia Motors, operating under the Lithia & Driveway name, is an automotive retail company that sells new and used vehicles through a network of dealerships and digital channels. Its retail operations represent numerous automobile manufacturers and provide customers with vehicle purchasing, financing, leasing and protection products.

The company also operates parts and service departments that provide maintenance, repairs, collision work and replacement parts. Through its Driveway platform, Lithia offers online vehicle shopping, financing, trade-ins and delivery services, extending its automotive retail model beyond traditional dealership locations.

Founded in 1946 in Ashland, Oregon, Lithia Motors has expanded through acquisitions and dealership development.

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