Lithia Motors (NYSE:LAD) Shares Up 7.1% on Earnings Beat

Lithia Motors, Inc. (NYSE:LAD)’s share price shot up 7.1% during trading on Wednesday following a stronger than expected earnings report. The company traded as high as $303.13 and last traded at $296.8520. 48,570 shares were traded during trading, a decline of 84% from the average session volume of 313,220 shares. The stock had previously closed at $277.24.

The company reported $7.34 earnings per share for the quarter, topping the consensus estimate of $7.06 by $0.28. The company had revenue of $9.27 billion for the quarter, compared to analysts’ expectations of $9.22 billion. Lithia Motors had a net margin of 1.88% and a return on equity of 12.49%. Lithia Motors’s revenue for the quarter was up 1.0% compared to the same quarter last year. During the same period in the prior year, the business earned $7.66 earnings per share.

Lithia Motors Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, May 22nd. Investors of record on Friday, May 8th will be given a $0.57 dividend. This represents a $2.28 annualized dividend and a dividend yield of 0.8%. This is a positive change from Lithia Motors’s previous quarterly dividend of $0.55. The ex-dividend date is Friday, May 8th. Lithia Motors’s dividend payout ratio (DPR) is currently 6.85%.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on LAD. Weiss Ratings reissued a “hold (c+)” rating on shares of Lithia Motors in a research note on Thursday, January 22nd. Barclays reduced their target price on Lithia Motors from $380.00 to $370.00 and set an “overweight” rating on the stock in a research note on Tuesday, April 7th. Citigroup reduced their target price on Lithia Motors from $366.00 to $326.00 and set a “buy” rating on the stock in a research note on Wednesday, April 8th. Wells Fargo & Company increased their target price on Lithia Motors from $293.00 to $305.00 and gave the company an “equal weight” rating in a research note on Thursday. Finally, JPMorgan Chase & Co. reduced their target price on Lithia Motors from $335.00 to $320.00 and set a “neutral” rating on the stock in a research note on Friday, April 17th. Six equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat, Lithia Motors presently has an average rating of “Moderate Buy” and a consensus price target of $362.33.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Hsbc Holdings PLC grew its position in Lithia Motors by 10.7% during the first quarter. Hsbc Holdings PLC now owns 20,489 shares of the company’s stock valued at $5,100,000 after acquiring an additional 1,974 shares during the last quarter. Oregon Public Employees Retirement Fund grew its stake in shares of Lithia Motors by 2.2% during the first quarter. Oregon Public Employees Retirement Fund now owns 4,962 shares of the company’s stock valued at $1,239,000 after buying an additional 109 shares during the last quarter. R Squared Ltd grew its stake in shares of Lithia Motors by 133.6% during the first quarter. R Squared Ltd now owns 1,649 shares of the company’s stock valued at $412,000 after buying an additional 943 shares during the last quarter. Y Intercept Hong Kong Ltd bought a new position in shares of Lithia Motors during the first quarter valued at about $282,000. Finally, Leonteq Securities AG grew its stake in shares of Lithia Motors by 570.8% during the first quarter. Leonteq Securities AG now owns 7,386 shares of the company’s stock valued at $1,844,000 after buying an additional 6,285 shares during the last quarter.

Lithia Motors Stock Down 0.3%

The stock has a 50 day moving average price of $267.16 and a 200-day moving average price of $302.67. The stock has a market capitalization of $6.79 billion, a P/E ratio of 10.19, a PEG ratio of 0.70 and a beta of 1.22. The company has a debt-to-equity ratio of 1.41, a current ratio of 0.99 and a quick ratio of 0.26.

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.