Lithia Motors (NYSE:LAD) Releases Quarterly Earnings Results, Beats Estimates By $0.97 EPS

Lithia Motors (NYSE:LAD) released its quarterly earnings results on Wednesday. The company reported $9.50 earnings per share (EPS) for the quarter, topping the consensus estimate of $8.53 by $0.97, Zacks reports. Lithia Motors had a return on equity of 13.21% and a net margin of 2.39%.The company had revenue of $9.68 billion during the quarter, compared to analysts’ expectations of $9.38 billion. During the same quarter in the prior year, the business posted $8.21 earnings per share. The company’s revenue for the quarter was up 4.9% compared to the same quarter last year.

Lithia Motors Stock Performance

Shares of NYSE LAD opened at $308.32 on Thursday. The company has a debt-to-equity ratio of 1.24, a quick ratio of 0.29 and a current ratio of 1.22. The firm has a market cap of $7.91 billion, a price-to-earnings ratio of 9.14, a P/E/G ratio of 0.65 and a beta of 1.28. The business’s 50-day simple moving average is $322.29 and its 200-day simple moving average is $315.90. Lithia Motors has a 52 week low of $262.10 and a 52 week high of $405.67.

Lithia Motors Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, November 21st. Stockholders of record on Friday, November 7th will be paid a dividend of $0.55 per share. The ex-dividend date of this dividend is Friday, November 7th. This represents a $2.20 dividend on an annualized basis and a dividend yield of 0.7%. Lithia Motors’s dividend payout ratio (DPR) is 6.52%.

Insider Activity at Lithia Motors

In other news, Director Shauna Mcintyre sold 256 shares of the stock in a transaction dated Thursday, July 31st. The stock was sold at an average price of $293.05, for a total transaction of $75,020.80. Following the transaction, the director owned 1,376 shares of the company’s stock, valued at approximately $403,236.80. This represents a 15.69% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Corporate insiders own 0.87% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in LAD. Orion Porfolio Solutions LLC bought a new position in shares of Lithia Motors during the 2nd quarter worth approximately $553,000. State of Wyoming bought a new position in Lithia Motors in the 2nd quarter valued at $67,000. Captrust Financial Advisors raised its position in Lithia Motors by 5.4% in the 2nd quarter. Captrust Financial Advisors now owns 1,565 shares of the company’s stock valued at $529,000 after purchasing an additional 80 shares during the last quarter. Vident Advisory LLC raised its position in Lithia Motors by 4.6% in the 2nd quarter. Vident Advisory LLC now owns 842 shares of the company’s stock valued at $285,000 after purchasing an additional 37 shares during the last quarter. Finally, Tidal Investments LLC raised its position in Lithia Motors by 54.5% in the 2nd quarter. Tidal Investments LLC now owns 3,553 shares of the company’s stock valued at $1,200,000 after purchasing an additional 1,254 shares during the last quarter.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on the company. Weiss Ratings cut Lithia Motors from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, October 8th. Jefferies Financial Group started coverage on Lithia Motors in a research note on Thursday, September 4th. They set a “buy” rating and a $400.00 target price for the company. JPMorgan Chase & Co. raised their target price on Lithia Motors from $320.00 to $350.00 and gave the company an “overweight” rating in a research note on Tuesday, October 14th. Guggenheim decreased their target price on Lithia Motors from $383.00 to $380.00 and set a “buy” rating for the company in a research note on Monday, August 11th. Finally, Bank of America decreased their target price on Lithia Motors from $500.00 to $385.00 and set a “buy” rating for the company in a research note on Wednesday, September 10th. Eight research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $381.00.

Lithia Motors announced that its board has authorized a share buyback program on Tuesday, August 26th that permits the company to buyback $750.00 million in shares. This buyback authorization permits the company to repurchase up to 9% of its shares through open market purchases. Shares buyback programs are generally a sign that the company’s board of directors believes its shares are undervalued.

Lithia Motors Company Profile

Lithia Motors, Inc operates as an automotive retailer worldwide. It operates in two segments, Vehicle Operations and Financing Operations. The company’s Vehicle Operations segment sells new and used vehicles; provides parts, repair, and maintenance services; vehicle finance; and insurance products. Its Financing Operations segment provides financing to customers buying and leasing retail vehicles.