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

Key Points

• Analysts give Lithia Motors a “Moderate Buy” consensus: Six of 11 analysts rate the stock a buy and five recommend holding it, with an average 12-month price target of $436.33.
• Lithia Motors exceeded quarterly earnings expectations, reporting $10.03 in EPS and $9.79 billion in revenue, while revenue increased 2.2% year over year.
• The company raised its quarterly dividend to $0.70 and authorized a $500 million share-repurchase program, covering up to 7.9% of outstanding shares; insiders, however, sold 537 shares worth $157,385 over the past 90 days.

Shares of Lithia Motors, Inc. (NYSE:LAD - Get Free Report) have been assigned an average recommendation of "Moderate Buy" from the eleven research firms that are currently covering the company, MarketBeat.com reports. Five research analysts have rated the stock with a hold rating and six have given a buy rating to the company. The average 12 month target price among analysts that have issued ratings on the stock in the last year is $436.3333.

Several analysts have recently commented on LAD shares. Citigroup raised their target price on Lithia Motors from $365.00 to $455.00 and gave the company a "buy" rating in a research note on Monday, August 3rd. Benchmark upped their price target on Lithia Motors from $400.00 to $475.00 and gave the stock a "buy" rating in a research note on Thursday, July 30th. Wells Fargo & Company upped their price target on Lithia Motors from $306.00 to $395.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 30th. UBS Group lowered Lithia Motors from a "buy" rating to a "neutral" rating and increased their price target for the stock from $370.00 to $440.00 in a report on Thursday, July 30th. Finally, Bank of America raised their price objective on Lithia Motors from $350.00 to $417.00 and gave the company a "buy" rating in a research note on Thursday, July 9th.

Insiders Place Their Bets

In other news, Director Shauna Mcintyre sold 165 shares of Lithia Motors stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $305.64, for a total transaction of $50,430.60. Following the completion of the transaction, the director directly owned 1,681 shares in the company, valued at $513,780.84. This trade represents a 8.94% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Richard J. Bailey, Jr. sold 297 shares of the business's stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $280.57, for a total transaction of $83,329.29. Following the sale, the director directly owned 760 shares of the company's stock, valued at approximately $213,233.20. The trade was a 28.10% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 537 shares of company stock valued at $157,385 in the last 90 days. 1.08% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Lithia Motors

Large investors have recently added to or reduced their stakes in the business. Addison Advisors LLC bought a new stake in Lithia Motors during the 2nd quarter worth approximately $30,000. Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in shares of Lithia Motors in the second quarter valued at approximately $30,000. Clearstead Advisors LLC lifted its holdings in shares of Lithia Motors by 111.4% in the fourth quarter. Clearstead Advisors LLC now owns 93 shares of the company's stock valued at $31,000 after purchasing an additional 49 shares in the last quarter. Quarry LP boosted its position in shares of Lithia Motors by 101.9% during the fourth quarter. Quarry LP now owns 109 shares of the company's stock valued at $36,000 after buying an additional 55 shares during the last quarter. Finally, Versant Capital Management Inc boosted its position in shares of Lithia Motors by 1,311.1% during the second 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.

Lithia Motors Stock Up 0.3%

Lithia Motors stock opened at $371.96 on Monday. The company has a market capitalization of $8.18 billion, a PE ratio of 12.34, a PEG ratio of 0.78 and a beta of 1.22. Lithia Motors has a 12-month low of $239.78 and a 12-month high of $439.49. The firm's fifty day moving average is $337.24 and its 200 day moving average is $300.40. The company has a quick ratio of 0.21, a current ratio of 1.00 and a debt-to-equity ratio of 1.46.

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

Lithia Motors Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, August 21st. Investors of record on Friday, August 7th were given a $0.70 dividend. This represents a $2.80 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend was Friday, August 7th. This is an increase from Lithia Motors's previous quarterly dividend of $0.57. Lithia Motors's payout ratio is 9.29%.

Lithia Motors announced that its board has initiated a stock repurchase plan on Tuesday, May 26th that allows the company to repurchase $500.00 million in shares. This repurchase authorization allows the company to reacquire up to 7.9% of its shares through open market purchases. Shares repurchase plans are often an indication that the company's management believes its stock is undervalued.

Lithia Motors Company Profile

Lithia Motors, Inc is an American automotive retailer headquartered in Medford, Oregon. Founded in 1946 as a small auto body and glass shop, the company has grown through organic expansion and strategic acquisitions to become one of the largest automotive retail networks in North America. Lithia operates dealerships across the United States and Canada, offering a broad portfolio of new and pre-owned vehicles from more than 40 different manufacturers.

The company's core business activities include vehicle sales, financing, insurance, parts and service.

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