Lithia Motors (NYSE:LAD) Hits New 1-Year High on Earnings Beat

Lithia Motors, Inc. (NYSE:LAD) reached a new 52-week high on Wednesday following a stronger than expected earnings report. The company traded as high as $332.32 and last traded at $328.45, with a volume of 84443 shares trading hands. The stock had previously closed at $304.54.

The company reported $8.21 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $7.60 by $0.61. Lithia Motors had a net margin of 2.52% and a return on equity of 13.84%. The company had revenue of $9.22 billion during the quarter, compared to analysts’ expectations of $9.46 billion. During the same quarter last year, the company posted $9.25 EPS. Lithia Motors’s quarterly revenue was up 11.4% compared to the same quarter last year.

Lithia Motors Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, November 15th. Stockholders of record on Friday, November 8th will be paid a dividend of $0.53 per share. The ex-dividend date of this dividend is Friday, November 8th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.63%. Lithia Motors’s dividend payout ratio (DPR) is currently 6.26%.

Analyst Upgrades and Downgrades

A number of brokerages have commented on LAD. Guggenheim upped their price objective on Lithia Motors from $350.00 to $380.00 and gave the company a “buy” rating in a report on Thursday. The Goldman Sachs Group raised their price target on shares of Lithia Motors from $300.00 to $335.00 and gave the stock a “neutral” rating in a research report on Friday, August 2nd. StockNews.com downgraded shares of Lithia Motors from a “hold” rating to a “sell” rating in a report on Tuesday, August 13th. Citigroup raised their target price on shares of Lithia Motors from $280.00 to $320.00 and gave the stock a “neutral” rating in a report on Friday, September 27th. Finally, Stephens boosted their price target on Lithia Motors from $360.00 to $405.00 and gave the company an “overweight” rating in a research note on Thursday. One research analyst has rated the stock with a sell rating, four have issued a hold rating and six have issued a buy rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $350.80.

Insider Activity

In related news, Director Shauna Mcintyre sold 306 shares of the firm’s stock in a transaction dated Friday, August 2nd. The stock was sold at an average price of $289.65, for a total value of $88,632.90. Following the sale, the director now directly owns 1,922 shares of the company’s stock, valued at $556,707.30. This trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. In related news, Director Sidney B. Deboer sold 10,777 shares of the company’s stock in a transaction that occurred on Friday, September 13th. The shares were sold at an average price of $275.93, for a total transaction of $2,973,697.61. Following the completion of the transaction, the director now directly owns 35,352 shares in the company, valued at $9,754,677.36. This represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Shauna Mcintyre sold 306 shares of the firm’s stock in a transaction that occurred on Friday, August 2nd. The shares were sold at an average price of $289.65, for a total transaction of $88,632.90. Following the completion of the sale, the director now owns 1,922 shares in the company, valued at $556,707.30. This represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 23,021 shares of company stock worth $6,534,617. Insiders own 1.79% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Goldman Sachs Group Inc. raised its position in Lithia Motors by 24.6% in the fourth quarter. Goldman Sachs Group Inc. now owns 49,797 shares of the company’s stock valued at $16,397,000 after purchasing an additional 9,818 shares during the last quarter. BNP Paribas Financial Markets raised its stake in shares of Lithia Motors by 132.9% during the first quarter. BNP Paribas Financial Markets now owns 19,138 shares of the company’s stock valued at $5,758,000 after acquiring an additional 10,920 shares during the last quarter. Harbor Capital Advisors Inc. acquired a new position in shares of Lithia Motors during the second quarter worth $607,000. Comerica Bank increased its holdings in Lithia Motors by 89.0% in the first quarter. Comerica Bank now owns 29,473 shares of the company’s stock valued at $8,867,000 after purchasing an additional 13,875 shares during the period. Finally, Russell Investments Group Ltd. lifted its holdings in Lithia Motors by 11.2% during the 1st quarter. Russell Investments Group Ltd. now owns 203,062 shares of the company’s stock worth $61,318,000 after buying an additional 20,416 shares during the period.

Lithia Motors Trading Up 0.0 %

The company has a quick ratio of 0.30, a current ratio of 1.19 and a debt-to-equity ratio of 1.26. The company has a market cap of $9.19 billion, a price-to-earnings ratio of 9.90, a PEG ratio of 0.30 and a beta of 1.64. The firm has a 50 day moving average price of $299.06 and a two-hundred day moving average price of $274.82.

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.