Lithia Motors, Inc. Announces Quarterly Dividend of $0.55 (NYSE:LAD)

Key Points

• Lithia Motors, Inc. announced a quarterly dividend of $0.55 per share, representing an annualized dividend of $2.20 and a yield of 0.72%, with payments set for August 22nd to stockholders of record on August 8th.
• The company reported earnings of $10.24 per share for the latest quarter, exceeding analysts’ expectations of $8.53, with strong future earnings projections expected to support its dividend policy.
• Analysts maintain a "Moderate Buy" rating for Lithia Motors, with price targets varying between $335.00 and $500.00, indicating a positive outlook amidst recent ups and downs in stock performance.

Lithia Motors, Inc. (NYSE:LAD - Get Free Report) declared a quarterly dividend on Tuesday, July 29th, RTT News reports. Investors of record on Friday, August 8th will be given a dividend of 0.55 per share on Friday, August 22nd. This represents a $2.20 dividend on an annualized basis and a yield of 0.77%. The ex-dividend date is Friday, August 8th.

Lithia Motors has a payout ratio of 5.9% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Lithia Motors to earn $40.30 per share next year, which means the company should continue to be able to cover its $2.20 annual dividend with an expected future payout ratio of 5.5%.

Lithia Motors Stock Down 1.1%

Shares of Lithia Motors stock traded down $3.23 on Wednesday, hitting $286.54. The company had a trading volume of 653,041 shares, compared to its average volume of 301,419. The stock has a market capitalization of $7.46 billion, a price-to-earnings ratio of 8.50, a P/E/G ratio of 0.45 and a beta of 1.46. Lithia Motors has a 1 year low of $255.32 and a 1 year high of $405.67. The stock has a 50 day moving average of $326.67 and a 200-day moving average of $324.30. The company has a debt-to-equity ratio of 1.24, a quick ratio of 0.31 and a current ratio of 1.22.

Lithia Motors (NYSE:LAD - Get Free Report) last issued its quarterly earnings data on Tuesday, July 29th. The company reported $10.24 EPS for the quarter, topping the consensus estimate of $9.78 by $0.46. The firm had revenue of $9.58 billion during the quarter, compared to the consensus estimate of $9.56 billion. Lithia Motors had a return on equity of 13.21% and a net margin of 2.39%. As a group, sell-side analysts forecast that Lithia Motors will post 34.45 earnings per share for the current year.

Insiders Place Their Bets

In other Lithia Motors news, Director Shauna Mcintyre sold 337 shares of the stock in a transaction on Thursday, May 1st. The stock was sold at an average price of $295.94, for a total transaction of $99,731.78. Following the completion of the transaction, the director directly owned 1,632 shares of the company's stock, valued at approximately $482,974.08. This represents a 17.12% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 0.87% of the company's stock.

Hedge Funds Weigh In On Lithia Motors

Several institutional investors and hedge funds have recently bought and sold shares of the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in shares of Lithia Motors by 13.9% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 8,474 shares of the company's stock worth $2,487,000 after acquiring an additional 1,032 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in Lithia Motors by 16.8% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 93,170 shares of the company's stock valued at $27,349,000 after purchasing an additional 13,407 shares in the last quarter. Finally, Goldman Sachs Group Inc. grew its stake in shares of Lithia Motors by 67.6% during the first quarter. Goldman Sachs Group Inc. now owns 113,346 shares of the company's stock valued at $33,272,000 after buying an additional 45,716 shares during the last quarter.

Analysts Set New Price Targets

LAD has been the subject of several analyst reports. Citigroup raised Lithia Motors from a "neutral" rating to a "buy" rating and lowered their price objective for the stock from $415.00 to $375.00 in a research note on Wednesday, April 23rd. Bank of America upped their target price on Lithia Motors from $430.00 to $500.00 and gave the company a "buy" rating in a report on Monday, June 16th. Wells Fargo & Company reduced their target price on Lithia Motors from $364.00 to $317.00 and set an "equal weight" rating for the company in a report on Wednesday. Guggenheim reduced their target price on Lithia Motors from $417.00 to $356.00 and set a "buy" rating for the company in a report on Tuesday, April 22nd. Finally, The Goldman Sachs Group assumed coverage on Lithia Motors in a report on Tuesday, June 3rd. They issued a "neutral" rating and a $340.00 target price for the company. Four investment analysts have rated the stock with a hold rating and seven have assigned a buy rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $377.80.

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.