Lithia Motors (NYSE:LAD) Reaches New 1-Year Low – Time to Sell?

Shares of Lithia Motors, Inc. (NYSE:LAD) reached a new 52-week low during mid-day trading on Monday . The company traded as low as $251.00 and last traded at $251.5650, with a volume of 122795 shares traded. The stock had previously closed at $254.70.

Wall Street Analysts Forecast Growth

LAD has been the topic of a number of research reports. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Lithia Motors in a research note on Thursday, January 22nd. Bank of America started coverage on Lithia Motors in a report on Wednesday, March 4th. They set a “neutral” rating on the stock. Wall Street Zen downgraded Lithia Motors from a “hold” rating to a “sell” rating in a research report on Saturday, February 28th. Barclays cut their price target on Lithia Motors from $390.00 to $380.00 and set an “overweight” rating on the stock in a research note on Tuesday, February 17th. Finally, Wells Fargo & Company lowered their price objective on Lithia Motors from $358.00 to $355.00 and set an “equal weight” rating for the company in a research note on Thursday, February 12th. Six equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $382.33.

Lithia Motors Price Performance

The company has a current ratio of 1.17, a quick ratio of 0.26 and a debt-to-equity ratio of 1.46. The stock has a market cap of $5.85 billion, a P/E ratio of 7.79, a price-to-earnings-growth ratio of 0.58 and a beta of 1.21. The business has a 50-day simple moving average of $305.19 and a 200 day simple moving average of $316.14.

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

Lithia Motors Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, March 20th. Investors of record on Friday, March 6th will be paid a dividend of $0.55 per share. This represents a $2.20 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date of this dividend is Friday, March 6th. Lithia Motors’s dividend payout ratio (DPR) is currently 6.85%.

Hedge Funds Weigh In On Lithia Motors

Several institutional investors have recently bought and sold shares of the company. Abrams Capital Management L.P. increased its position in Lithia Motors by 1.9% in the third quarter. Abrams Capital Management L.P. now owns 2,490,534 shares of the company’s stock worth $787,009,000 after buying an additional 45,856 shares during the last quarter. Dimensional Fund Advisors LP lifted its position in shares of Lithia Motors by 0.5% during the 4th quarter. Dimensional Fund Advisors LP now owns 1,346,783 shares of the company’s stock valued at $447,583,000 after buying an additional 6,113 shares during the last quarter. River Road Asset Management LLC grew its stake in shares of Lithia Motors by 33.6% during the 4th quarter. River Road Asset Management LLC now owns 742,677 shares of the company’s stock worth $246,814,000 after acquiring an additional 186,628 shares during the period. Canada Pension Plan Investment Board increased its holdings in Lithia Motors by 5.9% in the 2nd quarter. Canada Pension Plan Investment Board now owns 612,377 shares of the company’s stock worth $206,873,000 after acquiring an additional 33,966 shares during the last quarter. Finally, Geode Capital Management LLC increased its stake in shares of Lithia Motors by 2.5% in the second quarter. Geode Capital Management LLC now owns 479,537 shares of the company’s stock worth $162,022,000 after purchasing an additional 11,859 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.