Lithia Motors (NYSE:LAD) Issues Quarterly Earnings Results, Beats Expectations By $1.30 EPS

Lithia Motors (NYSE:LAD) announced its earnings results on Wednesday. The company reported $10.03 earnings per share for the quarter, beating analysts’ consensus estimates of $8.73 by $1.30, Zacks reports. Lithia Motors had a net margin of 1.88% and a return on equity of 12.49%. The business’s revenue for the quarter was up 2.2% compared to the same quarter last year. During the same quarter last year, the firm posted $10.24 earnings per share.

Lithia Motors Price Performance

Shares of LAD stock traded up $50.33 on Wednesday, hitting $408.64. 218,791 shares of the stock traded hands, compared to its average volume of 307,452. The firm has a market cap of $9.32 billion, a price-to-earnings ratio of 14.51, a PEG ratio of 0.81 and a beta of 1.26. Lithia Motors has a 52 week low of $239.78 and a 52 week high of $413.67. The firm has a 50 day simple moving average of $305.81 and a two-hundred day simple moving average of $294.24. The company has a debt-to-equity ratio of 1.41, a current ratio of 0.99 and a quick ratio of 0.24.

Lithia Motors announced that its Board of Directors has initiated a share buyback program on Tuesday, May 26th that permits the company to repurchase $500.00 million in shares. This repurchase authorization permits the company to repurchase up to 7.9% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s board of directors believes its stock is undervalued.

Wall Street Analyst Weigh In

Several analysts recently commented on LAD shares. Bank of America lifted their price objective on Lithia Motors from $350.00 to $417.00 and gave the stock a “buy” rating in a report on Thursday, July 9th. Zacks Research raised Lithia Motors from a “strong sell” rating to a “hold” rating in a report on Thursday, April 23rd. JPMorgan Chase & Co. raised their target price on Lithia Motors from $320.00 to $325.00 and gave the stock a “neutral” rating in a research report on Thursday, May 7th. Barclays cut their price target on Lithia Motors from $370.00 to $360.00 and set an “overweight” rating for the company in a research note on Wednesday, July 15th. Finally, Wells Fargo & Company increased their price objective on shares of Lithia Motors from $305.00 to $306.00 and gave the stock an “equal weight” rating in a research note on Monday, July 6th. Eight analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $380.33.

Insider Buying and Selling at Lithia Motors

In other Lithia Motors news, Director Richard J. Bailey, Jr. sold 297 shares of the firm’s stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $280.57, for a total transaction of $83,329.29. Following the sale, the director directly owned 760 shares of the company’s stock, valued at $213,233.20. This trade represents a 28.10% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Shauna Mcintyre sold 245 shares of the business’s stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $294.64, for a total value of $72,186.80. Following the completion of the transaction, the director owned 1,846 shares in the company, valued at $543,905.44. The trade was a 11.72% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 782 shares of company stock valued at $229,572 in the last ninety days. 1.08% of the stock is currently owned by insiders.

Institutional Trading of Lithia Motors

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Dimensional Fund Advisors LP lifted its holdings in Lithia Motors by 0.5% in the 4th quarter. Dimensional Fund Advisors LP now owns 1,346,783 shares of the company’s stock worth $447,583,000 after purchasing an additional 6,113 shares in the last quarter. Canada Pension Plan Investment Board grew its holdings in Lithia Motors by 5.9% during the 2nd quarter. Canada Pension Plan Investment Board now owns 612,377 shares of the company’s stock valued at $206,873,000 after buying an additional 33,966 shares in the last quarter. Hotchkis & Wiley Capital Management LLC raised its position in shares of Lithia Motors by 3.6% during the third quarter. Hotchkis & Wiley Capital Management LLC now owns 426,120 shares of the company’s stock valued at $134,654,000 after buying an additional 14,781 shares during the last quarter. Ameriprise Financial Inc. raised its position in shares of Lithia Motors by 18.0% during the third quarter. Ameriprise Financial Inc. now owns 221,928 shares of the company’s stock valued at $70,131,000 after buying an additional 33,931 shares during the last quarter. Finally, Bank of America Corp DE lifted its holdings in shares of Lithia Motors by 57.5% in the second quarter. Bank of America Corp DE now owns 197,417 shares of the company’s stock worth $66,691,000 after buying an additional 72,061 shares in the last quarter.

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.