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

Lithia Motors, Inc. (NYSE:LAD) has been assigned an average recommendation of “Moderate Buy” from the ten research firms that are currently covering the firm, Marketbeat Ratings reports. Three research analysts have rated the stock with a hold recommendation and seven have issued a buy recommendation on the company. The average 1-year target price among brokers that have updated their coverage on the stock in the last year is $378.3333.

Several brokerages have recently commented on LAD. Citigroup boosted their price objective on Lithia Motors from $378.00 to $383.00 and gave the company a “buy” rating in a research report on Tuesday, August 5th. Bank of America lowered their price objective on Lithia Motors from $500.00 to $385.00 and set a “buy” rating on the stock in a research report on Wednesday, September 10th. Benchmark reiterated a “buy” rating on shares of Lithia Motors in a research report on Thursday. Weiss Ratings downgraded Lithia Motors from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Wednesday, October 8th. Finally, Guggenheim decreased their target price on Lithia Motors from $383.00 to $380.00 and set a “buy” rating on the stock in a research report on Monday, August 11th.

Insider Activity at Lithia Motors

In related news, Director Shauna Mcintyre sold 256 shares of the business’s stock in a transaction dated Thursday, July 31st. The stock was sold at an average price of $293.05, for a total value of $75,020.80. Following the sale, the director directly owned 1,376 shares in the company, valued at approximately $403,236.80. The trade was a 15.69% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 0.87% of the company’s stock.

Institutional Investors Weigh In On Lithia Motors

Hedge funds have recently made changes to their positions in the company. Wealth Enhancement Advisory Services LLC raised its position in Lithia Motors by 118.1% during the first quarter. Wealth Enhancement Advisory Services LLC now owns 1,841 shares of the company’s stock valued at $541,000 after purchasing an additional 997 shares during the period. Cambridge Investment Research Advisors Inc. raised its position in Lithia Motors by 1.5% during the first quarter. Cambridge Investment Research Advisors Inc. now owns 2,421 shares of the company’s stock valued at $711,000 after purchasing an additional 35 shares during the period. GAMMA Investing LLC raised its position in Lithia Motors by 50.9% during the first quarter. GAMMA Investing LLC now owns 252 shares of the company’s stock valued at $74,000 after purchasing an additional 85 shares during the period. Invesco Ltd. raised its position in Lithia Motors by 4.4% during the first quarter. Invesco Ltd. now owns 119,466 shares of the company’s stock valued at $35,068,000 after purchasing an additional 5,005 shares during the period. Finally, KBC Group NV raised its position in Lithia Motors by 12.1% during the first quarter. KBC Group NV now owns 1,178 shares of the company’s stock valued at $346,000 after purchasing an additional 127 shares during the period.

Lithia Motors Stock Performance

NYSE:LAD opened at $321.68 on Tuesday. The stock has a 50-day simple moving average of $323.60 and a two-hundred day simple moving average of $317.17. Lithia Motors has a 52-week low of $262.10 and a 52-week high of $405.67. The firm has a market capitalization of $8.25 billion, a PE ratio of 9.31, a P/E/G ratio of 0.69 and a beta of 1.28. The company has a debt-to-equity ratio of 1.35, a quick ratio of 0.30 and a current ratio of 1.21.

Lithia Motors (NYSE:LAD) last announced its quarterly earnings data on Wednesday, October 22nd. The company reported $9.50 EPS for the quarter, beating the consensus estimate of $8.53 by $0.97. Lithia Motors had a return on equity of 13.42% and a net margin of 2.39%.The business had revenue of $9.68 billion for the quarter, compared to the consensus estimate of $9.38 billion. During the same period in the previous year, the business earned $8.21 earnings per share. The business’s revenue was up 4.9% on a year-over-year basis. Analysts forecast that Lithia Motors will post 34.45 EPS for the current year.

Lithia Motors Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, November 21st. Investors of record on Friday, November 7th will be given a $0.55 dividend. This represents a $2.20 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date is Friday, November 7th. Lithia Motors’s payout ratio is currently 6.37%.

Lithia Motors announced that its board has approved a share repurchase program on Tuesday, August 26th that permits the company to repurchase $750.00 million in outstanding shares. This repurchase authorization permits the company to repurchase up to 9% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s management believes its shares are undervalued.

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.