Lithia Motors (NYSE:LAD) Shares Break Below Two Hundred Day Moving Average - Here's Why

Key Points

• Lithia Motors shares fell below their 200-day moving average, touching $303.95 and last trading at $305.67, below the average of $307.07.
• Analyst views are mixed: six analysts rate the stock Buy and six Hold, giving it a consensus Moderate Buy rating and a $393.80 price target.
• The company beat quarterly earnings and revenue estimates, and raised its quarterly dividend from $0.70 to $0.75 per share.

Shares of Lithia Motors, Inc. (NYSE:LAD - Get Free Report) crossed below its 200-day moving average during trading on Tuesday. The stock has a 200-day moving average of $307.07 and traded as low as $303.95. Lithia Motors shares last traded at $305.6650, with a volume of 136,523 shares changing hands.

Analyst Upgrades and Downgrades

Several equities analysts have commented on LAD shares. Benchmark boosted their price target on shares of Lithia Motors from $400.00 to $475.00 and gave the stock a "buy" rating in a research note on Thursday, July 30th. Weiss Ratings cut Lithia Motors from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday, October 14th. JPMorgan Chase & Co. decreased their target price on Lithia Motors from $320.00 to $315.00 and set a "neutral" rating for the company in a report on Thursday, October 22nd. Wall Street Zen raised Lithia Motors from a "sell" rating to a "hold" rating in a research note on Saturday, August 1st. Finally, Barclays cut their price target on Lithia Motors from $375.00 to $345.00 and set an "overweight" rating on the stock in a report on Friday, October 23rd. Six equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $393.80.

Lithia Motors Stock Down 1.7%

The firm's fifty day simple moving average is $313.84 and its 200 day simple moving average is $307.07. The company has a current ratio of 1.00, a quick ratio of 0.21 and a debt-to-equity ratio of 1.44. The company has a market cap of $6.61 billion, a price-to-earnings ratio of 8.79, a PEG ratio of 0.72 and a beta of 1.30.

Lithia Motors (NYSE:LAD - Get Free Report) last announced its quarterly earnings data on Wednesday, October 21st. The company reported $10.34 earnings per share for the quarter, beating analysts' consensus estimates of $9.70 by $0.64. The business had revenue of $9.95 billion for the quarter, compared to analyst estimates of $9.75 billion. Lithia Motors had a net margin of 2.06% and a return on equity of 12.05%. The company's revenue was up 2.8% on a year-over-year basis. During the same period last year, the business earned $9.50 EPS. Sell-side analysts predict that Lithia Motors, Inc. will post 35.83 earnings per share for the current year.

Lithia Motors Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, November 20th. Investors of record on Friday, November 6th will be issued a $0.75 dividend. This represents a $3.00 annualized dividend and a yield of 1.0%. This is a boost from Lithia Motors's previous quarterly dividend of $0.70. The ex-dividend date of this dividend is Friday, November 6th. Lithia Motors's dividend payout ratio is currently 8.63%.

Insiders Place Their Bets

In other Lithia Motors news, Director Stacy Congdon sold 75 shares of Lithia Motors stock in a transaction dated Friday, September 11th. The stock was sold at an average price of $370.73, for a total transaction of $27,804.75. Following the completion of the sale, the director directly owned 2,300 shares of the company's stock, valued at $852,679. The trade was a 3.16% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.08% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in LAD. BlackRock Inc. purchased a new stake in Lithia Motors during the second quarter worth approximately $696,482,000. Madison Asset Management LLC acquired a new stake in Lithia Motors during the second quarter worth approximately $66,988,000. Bank of New York Mellon Corp acquired a new stake in Lithia Motors during the second quarter worth approximately $63,015,000. The Manufacturers Life Insurance Company acquired a new stake in Lithia Motors during the second quarter worth approximately $42,718,000. Finally, Bank of America Corp DE purchased a new stake in shares of Lithia Motors during the 2nd quarter worth approximately $21,371,000.

About Lithia Motors

Lithia Motors, Inc. is an automotive retailer that sells new and pre-owned vehicles through a network of franchised dealerships. Its dealerships represent a range of vehicle manufacturers and also offer related products and services, including parts, maintenance and repairs, and vehicle financing and insurance options. The company traces its roots to a single dealership established in Ashland, Oregon, in 1946. It has since expanded its retail operations across the United States, Canada and the United Kingdom.

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