Lithia Motors (NYSE:LAD) Hits New 1-Year Low Following Analyst Downgrade

Lithia Motors, Inc. (NYSE:LAD)’s share price reached a new 52-week low during mid-day trading on Friday after Citigroup lowered their price target on the stock from $399.00 to $366.00. Citigroup currently has a buy rating on the stock. Lithia Motors traded as low as $258.41 and last traded at $258.56, with a volume of 74724 shares changing hands. The stock had previously closed at $267.10.

Several other equities research analysts have also recently weighed in on the stock. Bank of America assumed coverage on shares of Lithia Motors in a research report on Wednesday. They issued a “neutral” rating for the company. Wall Street Zen lowered shares of Lithia Motors from a “hold” rating to a “sell” rating in a research report on Saturday, February 28th. Weiss Ratings reissued a “hold (c+)” rating on shares of Lithia Motors in a research note on Thursday, January 22nd. JPMorgan Chase & Co. lowered shares of Lithia Motors from an “overweight” rating to a “neutral” rating and set a $335.00 price target for the company. in a report on Friday, February 20th. Finally, Barclays dropped their price objective on shares of Lithia Motors from $390.00 to $380.00 and set an “overweight” rating for the company in a research report on Tuesday, February 17th. Six research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $382.33.

Insider Activity at Lithia Motors

In other news, Director Congdon Stacy Loretz sold 75 shares of Lithia Motors stock in a transaction dated Friday, December 12th. The stock was sold at an average price of $360.00, for a total transaction of $27,000.00. Following the transaction, the director owned 1,810 shares in the company, valued at $651,600. The trade was a 3.98% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.87% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the stock. CoreCap Advisors LLC bought a new stake in shares of Lithia Motors during the third quarter worth $26,000. Hantz Financial Services Inc. lifted its position in Lithia Motors by 1,383.3% in the 2nd quarter. Hantz Financial Services Inc. now owns 89 shares of the company’s stock valued at $30,000 after acquiring an additional 83 shares in the last quarter. Eastern Bank acquired a new position in Lithia Motors in the 3rd quarter worth $31,000. Root Financial Partners LLC acquired a new position in Lithia Motors in the 3rd quarter worth $31,000. Finally, Clearstead Advisors LLC increased its holdings in Lithia Motors by 111.4% during the 4th quarter. Clearstead Advisors LLC now owns 93 shares of the company’s stock worth $31,000 after purchasing an additional 49 shares in the last quarter.

Lithia Motors Price Performance

The company has a 50 day simple moving average of $315.60 and a 200-day simple moving average of $319.48. The stock has a market cap of $6.08 billion, a price-to-earnings ratio of 8.09, a P/E/G ratio of 0.61 and a beta of 1.20. The company has a current ratio of 1.17, a quick ratio of 0.26 and a debt-to-equity ratio of 1.46.

Lithia Motors (NYSE:LAD) last issued its quarterly earnings results on Wednesday, February 11th. The company reported $6.74 EPS for the quarter, missing analysts’ consensus estimates of $8.09 by ($1.35). The firm had revenue of $9.20 billion during the quarter, compared to the consensus estimate of $9.19 billion. Lithia Motors had a net margin of 2.18% and a return on equity of 12.76%. The business’s revenue for the quarter was up .3% on a year-over-year basis. During the same quarter last year, the firm earned $7.79 earnings per share. Research analysts expect that Lithia Motors, Inc. will post 34.45 EPS for the current year.

Lithia Motors Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, March 20th. Stockholders of record on Friday, March 6th will be issued a $0.55 dividend. The ex-dividend date is Friday, March 6th. This represents a $2.20 dividend on an annualized basis and a dividend yield of 0.8%. Lithia Motors’s dividend payout ratio (DPR) is 6.85%.

About Lithia Motors

Lithia Motors, Inc is an American automotive retailer headquartered in Medford, Oregon. Founded in 1946 as a small auto body and glass shop, the company has grown through organic expansion and strategic acquisitions to become one of the largest automotive retail networks in North America. Lithia operates dealerships across the United States and Canada, offering a broad portfolio of new and pre-owned vehicles from more than 40 different manufacturers.

The company’s core business activities include vehicle sales, financing, insurance, parts and service.