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

Lithia Motors, Inc. (NYSE:LAD) has received an average recommendation of “Moderate Buy” from the eleven analysts that are covering the firm, MarketBeat reports. Three investment analysts have rated the stock with a hold recommendation, seven have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average 12 month price target among analysts that have covered the stock in the last year is $383.10.

LAD has been the subject of a number of research reports. Bank of America decreased their price objective on shares of Lithia Motors from $500.00 to $385.00 and set a “buy” rating for the company in a report on Wednesday, September 10th. JPMorgan Chase & Co. raised their price target on shares of Lithia Motors from $320.00 to $350.00 and gave the stock an “overweight” rating in a research report on Tuesday, October 14th. Jefferies Financial Group initiated coverage on shares of Lithia Motors in a research report on Thursday, September 4th. They set a “buy” rating and a $400.00 price objective for the company. Benchmark reiterated a “buy” rating on shares of Lithia Motors in a research note on Thursday, October 23rd. Finally, Citigroup lifted their target price on Lithia Motors from $385.00 to $399.00 and gave the company a “buy” rating in a research note on Tuesday, October 28th.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. CWM LLC increased its stake in shares of Lithia Motors by 30.1% in the first quarter. CWM LLC now owns 212 shares of the company’s stock valued at $62,000 after purchasing an additional 49 shares during the period. Private Advisor Group LLC bought a new position in Lithia Motors in the 1st quarter worth approximately $226,000. Allianz Asset Management GmbH grew its holdings in Lithia Motors by 26.9% in the 1st quarter. Allianz Asset Management GmbH now owns 2,399 shares of the company’s stock worth $704,000 after buying an additional 509 shares in the last quarter. Cetera Investment Advisers increased its position in Lithia Motors by 54.6% in the 1st quarter. Cetera Investment Advisers now owns 5,347 shares of the company’s stock valued at $1,570,000 after acquiring an additional 1,888 shares during the period. Finally, Assetmark Inc. raised its stake in Lithia Motors by 30.6% during the 1st quarter. Assetmark Inc. now owns 1,711 shares of the company’s stock valued at $502,000 after acquiring an additional 401 shares in the last quarter.

Lithia Motors Stock Up 5.2%

Shares of Lithia Motors stock opened at $302.54 on Friday. The business has a 50-day moving average price of $311.63 and a 200 day moving average price of $318.23. Lithia Motors has a fifty-two week low of $262.10 and a fifty-two week high of $405.67. The firm has a market cap of $7.34 billion, a P/E ratio of 8.76, a P/E/G ratio of 0.67 and a beta of 1.29. The company has a quick ratio of 0.30, a current ratio of 1.21 and a debt-to-equity ratio of 1.35.

Lithia Motors (NYSE:LAD) last issued its earnings results on Wednesday, October 22nd. The company reported $9.50 EPS for the quarter, topping 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 company had revenue of $9.68 billion during the quarter, compared to analyst estimates of $9.38 billion. During the same quarter last year, the firm earned $8.21 EPS. The business’s revenue was up 4.9% on a year-over-year basis. On average, sell-side analysts forecast that Lithia Motors will post 34.45 earnings per share for the current fiscal year.

Lithia Motors Dividend Announcement

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

Lithia Motors declared that its Board of Directors has initiated a stock repurchase plan on Tuesday, August 26th that permits the company to buyback $750.00 million in shares. This buyback authorization permits the company to buy up to 9% of its shares through open market purchases. Shares buyback plans are usually an indication that the company’s board believes its stock is undervalued.

Lithia Motors Company Profile

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.