Insider Selling: Lithia Motors (NYSE:LAD) Director Sells 297 Shares of Stock

Lithia Motors, Inc. (NYSE:LAD) Director Richard Bailey, Jr. sold 297 shares of the company’s stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $280.57, for a total transaction of $83,329.29. Following the completion of the transaction, the director owned 760 shares in the company, valued at approximately $213,233.20. This trade represents a 28.10% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link.

Lithia Motors Stock Performance

Shares of NYSE:LAD traded up $9.97 on Wednesday, reaching $293.02. 289,289 shares of the company’s stock were exchanged, compared to its average volume of 319,435. The company has a fifty day moving average of $268.88 and a 200-day moving average of $298.58. Lithia Motors, Inc. has a twelve month low of $239.78 and a twelve month high of $360.55. The company has a market capitalization of $6.68 billion, a price-to-earnings ratio of 10.29, a PEG ratio of 0.61 and a beta of 1.28. The company has a current ratio of 0.99, a quick ratio of 0.24 and a debt-to-equity ratio of 1.41.

Lithia Motors (NYSE:LAD) last announced its earnings results on Wednesday, April 29th. The company reported $7.34 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $7.06 by $0.28. Lithia Motors had a net margin of 1.88% and a return on equity of 12.49%. The firm had revenue of $9.27 billion for the quarter, compared to analyst estimates of $9.22 billion. During the same quarter in the prior year, the business posted $7.66 EPS. The business’s revenue was up 1.0% compared to the same quarter last year. On average, research analysts predict that Lithia Motors, Inc. will post 34.26 EPS for the current fiscal year.

Lithia Motors declared that its Board of Directors has initiated a share buyback program on Tuesday, May 26th that allows the company to buyback $500.00 million in outstanding shares. This buyback authorization allows the company to buy up to 7.9% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s leadership believes its stock is undervalued.

Lithia Motors Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, May 22nd. Shareholders of record on Friday, May 8th were given a dividend of $0.57 per share. This represents a $2.28 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date was Friday, May 8th. This is a boost from Lithia Motors’s previous quarterly dividend of $0.55. Lithia Motors’s dividend payout ratio (DPR) is currently 8.01%.

Analysts Set New Price Targets

LAD has been the topic of a number of analyst reports. UBS Group initiated coverage on shares of Lithia Motors in a research report on Wednesday. They set a “buy” rating and a $348.00 target price on the stock. Zacks Research upgraded shares of Lithia Motors from a “strong sell” rating to a “hold” rating in a research report on Thursday, April 23rd. Wells Fargo & Company increased their target price on shares of Lithia Motors from $293.00 to $305.00 and gave the stock an “equal weight” rating in a research report on Thursday, April 30th. Citigroup increased their target price on shares of Lithia Motors from $326.00 to $365.00 and gave the stock a “buy” rating in a research report on Friday, May 1st. Finally, JPMorgan Chase & Co. increased their target price on shares of Lithia Motors from $320.00 to $325.00 and gave the stock a “neutral” rating in a research report on Thursday, May 7th. Seven equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $365.30.

Institutional Trading of Lithia Motors

Several large investors have recently made changes to their positions in LAD. Root Financial Partners LLC acquired a new stake in shares of Lithia Motors during the 3rd quarter worth approximately $31,000. Clearstead Advisors LLC boosted its position in shares of 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 acquiring an additional 49 shares in the last quarter. Parkside Financial Bank & Trust boosted its position in shares of Lithia Motors by 75.0% during the 3rd quarter. Parkside Financial Bank & Trust now owns 105 shares of the company’s stock worth $33,000 after acquiring an additional 45 shares in the last quarter. V Square Quantitative Management LLC acquired a new stake in shares of Lithia Motors during the 4th quarter worth approximately $34,000. Finally, Quarry LP boosted its position in shares of Lithia Motors by 101.9% during the 4th quarter. Quarry LP now owns 109 shares of the company’s stock worth $36,000 after acquiring an additional 55 shares in the last quarter.

Lithia Motors Company Profile

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.