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

Key Points

• Lithia Motors (NYSE:LAD) has received an average rating of "Moderate Buy" from ten research analysts, with a price target averaging $376.50.
• Insider trading has been noted, with Director Shauna Mcintyre selling 256 shares at $293.05 per share, reducing her ownership by 15.69%.
• The company recently announced a $750 million stock buyback plan, indicating that its board believes the shares are undervalued.

Lithia Motors, Inc. (NYSE:LAD - Get Free Report) has been assigned an average rating of "Moderate Buy" from the ten research firms that are presently covering the stock, Marketbeat Ratings reports. Two equities research analysts have rated the stock with a hold rating and eight have given a buy rating to the company. The average 1 year target price among brokers that have updated their coverage on the stock in the last year is $376.50.

Several equities analysts have recently issued reports on the company. Guggenheim lowered 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, August 11th. Bank of America lowered their price target on Lithia Motors from $500.00 to $385.00 and set a "buy" rating on the stock in a research report on Wednesday, September 10th. Citigroup lifted their price target on Lithia Motors from $378.00 to $383.00 and gave the company a "buy" rating in a research report on Tuesday, August 5th. Jefferies Financial Group assumed coverage on Lithia Motors in a research report on Thursday, September 4th. They set a "buy" rating and a $400.00 price target on the stock. Finally, JPMorgan Chase & Co. lowered 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.

Insider Activity

In other news, Director Shauna Mcintyre sold 256 shares of the business's stock in a transaction on Thursday, July 31st. The stock was sold at an average price of $293.05, for a total transaction of $75,020.80. Following the sale, the director directly owned 1,376 shares of the company's stock, valued at $403,236.80. The trade was 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 this link. 0.87% of the stock is owned by company insiders.

Institutional Investors Weigh In On Lithia Motors

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Abrams Capital Management L.P. raised its position in shares of Lithia Motors by 2.2% during the first 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 raised its position in shares of Lithia Motors by 10,136,710.0% during the first quarter. Coppell Advisory Solutions LLC now owns 2,027,362 shares of the company's stock worth $595,112,000 after purchasing an additional 2,027,342 shares during the period. Dimensional Fund Advisors LP grew its holdings in shares of Lithia Motors by 6.1% during 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 in the last quarter. Canada Pension Plan Investment Board grew its holdings in shares of Lithia Motors by 5.9% during the second quarter. Canada Pension Plan Investment Board now owns 612,377 shares of the company's stock valued at $206,873,000 after buying an additional 33,966 shares in the last quarter. Finally, Geode Capital Management LLC grew its holdings in shares of Lithia Motors by 2.5% during the second quarter. Geode Capital Management LLC now owns 479,537 shares of the company's stock valued at $162,022,000 after buying an additional 11,859 shares in the last quarter.

Lithia Motors Stock Down 1.0%

Shares of Lithia Motors stock opened at $320.37 on Friday. The business's fifty day moving average price is $318.99 and its two-hundred day moving average price is $315.18. 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 has a market capitalization of $8.21 billion, a P/E ratio of 9.50, a PEG ratio of 0.65 and a beta of 1.28. Lithia Motors has a 1-year low of $262.10 and a 1-year 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 for the quarter, beating the consensus estimate of $9.78 by $0.46. The firm had revenue of $9.58 billion for 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, research analysts forecast that Lithia Motors will post 34.45 EPS for the current year.

Lithia Motors Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, August 22nd. Stockholders 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 annualized dividend and a dividend yield of 0.7%. Lithia Motors's dividend payout ratio (DPR) is 6.52%.

Lithia Motors declared that its Board of Directors has initiated a stock repurchase plan on Tuesday, August 26th that permits the company to buyback $750.00 million in outstanding shares. This buyback authorization permits the company to purchase up to 9% of its stock through open market purchases. Stock buyback plans are often an indication that the company's board believes its shares are undervalued.

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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