Lithia Motors (NYSE:LAD) Posts Earnings Results, Beats Expectations By $0.46 EPS

Key Points

• Lithia Motors reported earnings of $10.24 per share for the quarter, exceeding analysts' expectations of $8.53.
• The company announced a quarterly dividend of $0.55, with a dividend yield of 0.75% and an annualized payout of $2.20.
• Analysts have issued a consensus rating of "Moderate Buy" for Lithia Motors, with a target price averaging $382.50.

Lithia Motors (NYSE:LAD - Get Free Report) issued its earnings results on Tuesday. The company reported $10.24 earnings per share for the quarter, topping analysts' consensus estimates of $9.78 by $0.46, Zacks reports. The firm had revenue of $9.58 billion during the quarter, compared to analysts' expectations of $9.56 billion. Lithia Motors had a net margin of 2.39% and a return on equity of 13.21%.

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 firm has a market capitalization of $7.46 billion, a P/E ratio of 8.50, a P/E/G ratio of 0.45 and a beta of 1.46. Lithia Motors has a twelve month low of $255.32 and a twelve month high of $405.67. The company has a debt-to-equity ratio of 1.24, a current ratio of 1.22 and a quick ratio of 0.31. The stock has a 50-day moving average of $326.67 and a 200-day moving average of $324.30.

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 paid a $0.55 dividend. This represents a $2.20 annualized dividend and a yield of 0.77%. The ex-dividend date of this dividend is Friday, August 8th. Lithia Motors's payout ratio is presently 6.93%.

Insider Buying and Selling

In other news, Director Shauna Mcintyre sold 337 shares of the stock in a transaction dated Thursday, May 1st. The shares were sold at an average price of $295.94, for a total value of $99,731.78. Following the transaction, the director directly owned 1,632 shares of the company's stock, valued at $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 can be accessed through this link. Insiders own 0.87% of the company's stock.

Hedge Funds Weigh In On Lithia Motors

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

Analyst Ratings Changes

Several equities research analysts recently commented on the stock. The Goldman Sachs Group started coverage on shares of Lithia Motors in a research report on Tuesday, June 3rd. They issued a "neutral" rating and a $340.00 price target for the company. JPMorgan Chase & Co. cut their target price on shares of Lithia Motors from $345.00 to $335.00 and set an "overweight" rating for the company in a research report on Wednesday, July 16th. Citigroup upgraded shares of Lithia Motors from a "neutral" rating to a "buy" rating and cut their target price for the stock from $415.00 to $375.00 in a research report on Wednesday, April 23rd. Guggenheim cut their target price on shares of Lithia Motors from $417.00 to $356.00 and set a "buy" rating for the company in a research report on Tuesday, April 22nd. Finally, Wells Fargo & Company cut their target price on shares of Lithia Motors from $364.00 to $317.00 and set an "equal weight" rating for the company in a research report on Wednesday. Four equities research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company. According to data from MarketBeat, the stock currently has an average 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.