Lithia Motors, Inc. (NYSE:LAD) Given Average Rating of "Moderate Buy" by Analysts

Key Points

• Lithia Motors has received a consensus rating of "Moderate Buy" from ten research firms, with an average 12-month price target of $379.00.
• The company reported earnings of $10.24 EPS, surpassing expectations, and announced a quarterly dividend of $0.55 to be paid on August 22nd.
• Recent institutional interest includes significant increases in holdings by several hedge funds, notably a 114.6% increase in shares by Bessemer Group Inc.

Lithia Motors, Inc. (NYSE:LAD - Get Free Report) has been assigned a consensus rating of "Moderate Buy" from the ten research firms that are presently covering the company, Marketbeat Ratings reports. Three equities research analysts have rated the stock with a hold recommendation and seven have given a buy recommendation to the company. The average 12 month price objective among brokerages that have issued a report on the stock in the last year is $379.00.

Several equities research analysts have recently commented on the company. 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. JPMorgan Chase & Co. dropped their price target on Lithia Motors from $335.00 to $315.00 and set an "overweight" rating on the stock in a research report on Tuesday, August 5th. The Goldman Sachs Group started coverage on Lithia Motors in a research report on Tuesday, June 3rd. They set a "neutral" rating and a $340.00 price target on the stock. Guggenheim dropped their price target on Lithia Motors from $383.00 to $380.00 and set a "buy" rating on the stock in a research report on Monday. Finally, Wells Fargo & Company dropped their price target on Lithia Motors from $364.00 to $317.00 and set an "equal weight" rating on the stock in a research report on Wednesday, July 30th.

Lithia Motors Trading Up 4.6%

Shares of NYSE LAD opened at $314.64 on Thursday. Lithia Motors has a 12 month low of $255.32 and a 12 month high of $405.67. The company has a market cap of $8.07 billion, a price-to-earnings ratio of 9.33, a P/E/G ratio of 0.46 and a beta of 1.30. The company has a quick ratio of 0.29, a current ratio of 1.22 and a debt-to-equity ratio of 1.24. The business has a fifty day simple moving average of $322.48 and a 200-day simple moving average of $320.12.

Lithia Motors (NYSE:LAD - Get Free Report) last announced its earnings results on Tuesday, July 29th. The company reported $10.24 EPS for the quarter, beating the consensus estimate of $9.78 by $0.46. Lithia Motors had a return on equity of 13.21% and a net margin of 2.39%. The business had revenue of $9.58 billion during the quarter, compared to the consensus estimate of $9.56 billion. Sell-side analysts predict that Lithia Motors will post 34.45 EPS for the current year.

Lithia Motors Announces Dividend

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

Insiders Place Their Bets

In other Lithia Motors news, Director Shauna Mcintyre sold 256 shares of the company's stock in a transaction dated Thursday, July 31st. The stock was sold at an average price of $293.05, for a total value of $75,020.80. Following the transaction, the director directly owned 1,376 shares of the company's stock, valued at $403,236.80. This represents a 15.69% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.87% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the company. Bessemer Group Inc. increased its holdings in shares of Lithia Motors by 114.6% during the 2nd quarter. Bessemer Group Inc. now owns 88 shares of the company's stock valued at $29,000 after acquiring an additional 47 shares during the last quarter. Hantz Financial Services Inc. increased its holdings in shares of Lithia Motors by 1,383.3% during the 2nd quarter. Hantz Financial Services Inc. now owns 89 shares of the company's stock valued at $30,000 after acquiring an additional 83 shares during the last quarter. Parallel Advisors LLC increased its holdings in shares of Lithia Motors by 106.2% during the 2nd quarter. Parallel Advisors LLC now owns 134 shares of the company's stock valued at $45,000 after acquiring an additional 69 shares during the last quarter. eCIO Inc. acquired a new position in shares of Lithia Motors during the 1st quarter valued at about $55,000. Finally, NBC Securities Inc. acquired a new position in shares of Lithia Motors during the 1st quarter valued at about $59,000.

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.

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