Insider Selling: Lithia Motors (NYSE:LAD) Director Sells 75 Shares of Stock

Lithia Motors, Inc. (NYSE:LAD) Director Congdon Stacy Loretz sold 75 shares of the business’s stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $315.00, for a total transaction of $23,625.00. Following the completion of the transaction, the director owned 2,375 shares in the company, valued at $748,125. The trade was a 3.06% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Lithia Motors Trading Down 1.2%

Shares of NYSE LAD traded down $3.74 during midday trading on Monday, hitting $309.64. 273,283 shares of the company traded hands, compared to its average volume of 311,735. Lithia Motors, Inc. has a 12-month low of $239.78 and a 12-month high of $360.55. The company has a debt-to-equity ratio of 1.41, a quick ratio of 0.24 and a current ratio of 0.99. The stock has a 50-day moving average price of $281.07 and a 200 day moving average price of $298.81. The firm has a market cap of $7.06 billion, a P/E ratio of 10.87, a P/E/G ratio of 0.69 and a beta of 1.26.

Lithia Motors (NYSE:LAD) last announced its quarterly earnings results on Wednesday, April 29th. The company reported $7.34 earnings per share (EPS) for the quarter, beating the consensus estimate of $7.06 by $0.28. Lithia Motors had a net margin of 1.88% and a return on equity of 12.49%. The company had revenue of $9.27 billion for the quarter, compared to analysts’ expectations of $9.22 billion. During the same quarter in the previous year, the company earned $7.66 earnings per share. Lithia Motors’s quarterly revenue was up 1.0% on a year-over-year basis. As a group, analysts expect that Lithia Motors, Inc. will post 34.37 earnings per share for the current year.

Lithia Motors declared that its Board of Directors has initiated a stock repurchase plan on Tuesday, May 26th that authorizes the company to buyback $500.00 million in outstanding shares. This buyback authorization authorizes the company to reacquire up to 7.9% of its stock through open market purchases. Stock buyback plans are typically a sign that the company’s board of directors believes its shares are undervalued.

Lithia Motors Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, May 22nd. Investors of record on Friday, May 8th were given a dividend of $0.57 per share. This is an increase from Lithia Motors’s previous quarterly dividend of $0.55. This represents a $2.28 annualized dividend and a dividend yield of 0.7%. The ex-dividend date was Friday, May 8th. Lithia Motors’s dividend payout ratio is presently 8.01%.

Analyst Ratings Changes

Several equities analysts recently issued reports on LAD shares. UBS Group started coverage on shares of Lithia Motors in a research report on Wednesday, May 27th. They set a “buy” rating and a $348.00 price target on the stock. Bank of America reduced their price target on shares of Lithia Motors from $335.00 to $320.00 in a research report on Monday, April 13th. Wall Street Zen raised shares of Lithia Motors from a “sell” rating to a “hold” rating in a research note on Saturday, May 30th. Zacks Research raised shares of Lithia Motors from a “strong sell” rating to a “hold” rating in a research note on Thursday, April 23rd. Finally, Wells Fargo & Company boosted their price objective on shares of Lithia Motors from $293.00 to $305.00 and gave the stock an “equal weight” rating in a research note on Thursday, April 30th. Seven research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, Lithia Motors has an average rating of “Moderate Buy” and an average price target of $368.11.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Clearstead Advisors LLC lifted its stake in shares of Lithia Motors by 111.4% in the fourth quarter. Clearstead Advisors LLC now owns 93 shares of the company’s stock worth $31,000 after buying an additional 49 shares in the last quarter. V Square Quantitative Management LLC bought a new position in shares of Lithia Motors in the fourth quarter worth approximately $34,000. Quarry LP lifted its stake in shares of Lithia Motors by 101.9% in the fourth quarter. Quarry LP now owns 109 shares of the company’s stock worth $36,000 after buying an additional 55 shares in the last quarter. Los Angeles Capital Management LLC bought a new position in shares of Lithia Motors in the fourth quarter worth approximately $38,000. Finally, eCIO Inc. bought a new position in shares of Lithia Motors in the fourth quarter worth approximately $42,000.

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.