Lithia Motors (NYSE:LAD) Trading Down 5.8% Following Analyst Downgrade

Lithia Motors, Inc. (NYSE:LAD)’s share price was down 5.8% during trading on Thursday after JPMorgan Chase & Co. lowered their price target on the stock from $345.00 to $335.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. Lithia Motors traded as low as $313.52 and last traded at $312.12. Approximately 54,302 shares were traded during trading, a decline of 82% from the average daily volume of 309,475 shares. The stock had previously closed at $331.23.

Other research analysts have also issued reports about the company. Wells Fargo & Company lifted their target price on Lithia Motors from $305.00 to $364.00 and gave the stock an “equal weight” rating in a report on Wednesday, July 9th. Citigroup upgraded Lithia Motors from a “neutral” rating to a “buy” rating and reduced their target price for the stock from $415.00 to $375.00 in a report on Wednesday, April 23rd. The Goldman Sachs Group started coverage on Lithia Motors in a report on Tuesday, June 3rd. They set a “neutral” rating and a $340.00 target price on the stock. Bank of America lifted their target price on Lithia Motors from $430.00 to $500.00 and gave the stock a “buy” rating in a report on Monday, June 16th. Finally, Guggenheim reduced their target price on Lithia Motors from $417.00 to $356.00 and set a “buy” rating on the stock in a report on Tuesday, April 22nd. Four research analysts have rated the stock with a hold rating and seven have issued a buy rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $382.50.

Insider Buying and Selling

In other Lithia Motors news, Director Shauna Mcintyre sold 337 shares of Lithia Motors stock in a transaction dated Thursday, May 1st. The stock was sold at an average price of $295.94, for a total transaction of $99,731.78. Following the completion of the transaction, the director owned 1,632 shares in the company, valued at approximately $482,974.08. The trade was a 17.12% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 0.87% of the stock is owned by insiders.

Hedge Funds Weigh In On Lithia Motors

Several institutional investors have recently bought and sold shares of LAD. Atlas Capital Advisors Inc. bought a new stake in Lithia Motors during the 4th quarter valued at $34,000. Parallel Advisors LLC increased its position in shares of Lithia Motors by 106.2% during the second quarter. Parallel Advisors LLC now owns 134 shares of the company’s stock valued at $45,000 after buying an additional 69 shares during the period. eCIO Inc. bought a new stake in shares of Lithia Motors during the first quarter valued at about $55,000. NBC Securities Inc. bought a new stake in shares of Lithia Motors during the first quarter valued at about $59,000. Finally, UMB Bank n.a. increased its position in shares of Lithia Motors by 63.7% during the first quarter. UMB Bank n.a. now owns 203 shares of the company’s stock valued at $60,000 after buying an additional 79 shares during the period.

Lithia Motors Stock Performance

The company has a 50-day moving average price of $328.48 and a two-hundred day moving average price of $326.67. The stock has a market capitalization of $8.01 billion, a P/E ratio of 9.70, a PEG ratio of 0.54 and a beta of 1.46. The company has a quick ratio of 0.31, a current ratio of 1.18 and a debt-to-equity ratio of 1.22.

Lithia Motors (NYSE:LAD) last released its earnings results on Wednesday, April 23rd. The company reported $7.66 EPS for the quarter, missing analysts’ consensus estimates of $7.77 by ($0.11). The firm had revenue of $9.18 billion during the quarter, compared to the consensus estimate of $9.19 billion. Lithia Motors had a net margin of 2.30% and a return on equity of 12.74%. The firm’s revenue was up 7.2% compared to the same quarter last year. During the same period in the prior year, the company earned $6.11 EPS. Equities analysts expect that Lithia Motors, Inc. will post 34.45 earnings per share for the current year.

Lithia Motors Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, May 23rd. Stockholders of record on Friday, May 9th were paid a dividend of $0.55 per share. This is a boost from Lithia Motors’s previous quarterly dividend of $0.53. This represents a $2.20 dividend on an annualized basis and a dividend yield of 0.71%. The ex-dividend date was Friday, May 9th. Lithia Motors’s dividend payout ratio (DPR) is 6.93%.

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.