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

Key Points

• Lithia Motors, Inc. has received a consensus recommendation of "Moderate Buy" from eleven research firms, with a 12-month price target averaging $380.91.
• The company reported an EPS of $10.24 for the last quarter, exceeding analysts' expectations, and has a net margin of 2.39%.
• A stock buyback program has been authorized, allowing the company to repurchase up to $750 million in shares, indicating management's belief that its shares may be undervalued.

Lithia Motors, Inc. (NYSE:LAD - Get Free Report) has been assigned a consensus recommendation of "Moderate Buy" from the eleven research firms that are presently covering the company, Marketbeat reports. Three analysts have rated the stock with a hold recommendation and eight have given a buy recommendation to the company. The average twelve-month price target among brokerages that have covered the stock in the last year is $380.9091.

LAD has been the topic of a number of research reports. JPMorgan Chase & Co. lowered their target price on shares of 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 initiated coverage on shares of Lithia Motors in a research report on Tuesday, June 3rd. They set a "neutral" rating and a $340.00 target price on the stock. Guggenheim lowered their target price on shares of Lithia Motors from $383.00 to $380.00 and set a "buy" rating on the stock in a research report on Monday, August 11th. Wells Fargo & Company decreased their price target on Lithia Motors from $364.00 to $317.00 and set an "equal weight" rating for the company in a report on Wednesday, July 30th. Finally, Bank of America increased their price target on Lithia Motors from $430.00 to $500.00 and gave the stock a "buy" rating in a report on Monday, June 16th.

Lithia Motors Stock Performance

Shares of Lithia Motors stock opened at $341.10 on Monday. The firm has a market capitalization of $8.75 billion, a P/E ratio of 10.11, a P/E/G ratio of 0.53 and a beta of 1.31. Lithia Motors has a 52 week low of $255.32 and a 52 week high of $405.67. 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 firm's 50 day moving average is $320.73 and its two-hundred day moving average is $313.55.

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

Lithia Motors announced that its Board of Directors has authorized a stock buyback program on Tuesday, August 26th that authorizes the company to buyback $750.00 million in shares. This buyback authorization authorizes the company to repurchase up to 9% of its shares through open market purchases. Shares buyback programs are typically an indication that the company's board of directors believes its shares are undervalued.

Lithia Motors Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, August 22nd. Investors of record on Friday, August 8th were issued a dividend of $0.55 per share. The ex-dividend date of this dividend was Friday, August 8th. This represents a $2.20 annualized dividend and a dividend yield of 0.6%. Lithia Motors's dividend payout ratio (DPR) is currently 6.52%.

Insider Buying and Selling at Lithia Motors

In related news, Director Shauna Mcintyre sold 256 shares of the 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 completion of the sale, the director directly owned 1,376 shares of the company's stock, valued at $403,236.80. This trade 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 through this link. 0.87% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Lithia Motors

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Osaic Holdings Inc. lifted its holdings in Lithia Motors by 3.2% in the second quarter. Osaic Holdings Inc. now owns 7,435 shares of the company's stock valued at $2,507,000 after acquiring an additional 230 shares during the period. Orion Porfolio Solutions LLC acquired a new position in shares of Lithia Motors during the 2nd quarter worth $553,000. Thrivent Financial for Lutherans raised its stake in shares of Lithia Motors by 32.2% during the 2nd quarter. Thrivent Financial for Lutherans now owns 8,258 shares of the company's stock worth $2,789,000 after buying an additional 2,013 shares during the last quarter. State of Wyoming acquired a new position in shares of Lithia Motors during the 2nd quarter worth $67,000. Finally, Hudson Bay Capital Management LP raised its stake in shares of Lithia Motors by 1,127.5% during the 2nd quarter. Hudson Bay Capital Management LP now owns 20,892 shares of the company's stock worth $7,058,000 after buying an additional 19,190 shares during the last quarter.

Lithia Motors Company 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.

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