Lithia Motors (NYSE:LAD) Shares Gap Down After Earnings Miss

Lithia Motors, Inc. (NYSE:LAD) shares gapped down before the market opened on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $264.49, but opened at $250.00. Lithia Motors shares last traded at $256.39, with a volume of 117,601 shares traded.

The company reported $6.11 EPS for the quarter, missing the consensus estimate of $7.85 by ($1.74). The firm had revenue of $8.56 billion during the quarter, compared to analyst estimates of $8.58 billion. Lithia Motors had a return on equity of 15.59% and a net margin of 2.87%. Lithia Motors’s revenue was up 22.7% compared to the same quarter last year. During the same quarter in the previous year, the business posted $8.44 EPS.

Lithia Motors Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, May 24th. Shareholders of record on Friday, May 10th will be issued a dividend of $0.53 per share. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.82%. This is a boost from Lithia Motors’s previous quarterly dividend of $0.50. The ex-dividend date of this dividend is Thursday, May 9th. Lithia Motors’s dividend payout ratio is 5.90%.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on LAD shares. Craig Hallum decreased their price target on shares of Lithia Motors from $350.00 to $310.00 and set a “buy” rating for the company in a report on Thursday. Evercore ISI initiated coverage on Lithia Motors in a report on Wednesday, January 17th. They set an “outperform” rating and a $400.00 target price for the company. The Goldman Sachs Group increased their price objective on shares of Lithia Motors from $300.00 to $334.00 and gave the stock a “neutral” rating in a report on Thursday, February 15th. Stephens reissued an “overweight” rating and set a $375.00 target price on shares of Lithia Motors in a research note on Wednesday, February 14th. Finally, Wells Fargo & Company dropped their price target on shares of Lithia Motors from $290.00 to $248.00 and set an “equal weight” rating on the stock in a research note on Thursday. One research analyst has rated the stock with a sell rating, five have assigned a hold rating and five have issued a buy rating to the company. According to MarketBeat, Lithia Motors presently has an average rating of “Hold” and an average target price of $320.82.

Insider Transactions at Lithia Motors

In related news, Director Shauna Mcintyre sold 135 shares of the business’s stock in a transaction that occurred on Friday, February 16th. The stock was sold at an average price of $297.84, for a total transaction of $40,208.40. Following the sale, the director now owns 1,662 shares of the company’s stock, valued at $495,010.08. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Company insiders own 1.79% of the company’s stock.

Hedge Funds Weigh In On Lithia Motors

Several hedge funds have recently modified their holdings of the company. Mariner LLC grew its holdings in Lithia Motors by 4.1% during the third quarter. Mariner LLC now owns 4,401 shares of the company’s stock worth $1,300,000 after acquiring an additional 174 shares during the period. American Century Companies Inc. grew its stake in shares of Lithia Motors by 33.7% in the 3rd quarter. American Century Companies Inc. now owns 35,164 shares of the company’s stock worth $10,385,000 after purchasing an additional 8,862 shares during the last quarter. Citigroup Inc. raised its holdings in shares of Lithia Motors by 95.6% in the 3rd quarter. Citigroup Inc. now owns 12,649 shares of the company’s stock worth $3,736,000 after purchasing an additional 6,181 shares in the last quarter. Teachers Retirement System of The State of Kentucky lifted its stake in Lithia Motors by 93.2% during the third quarter. Teachers Retirement System of The State of Kentucky now owns 9,412 shares of the company’s stock valued at $2,780,000 after purchasing an additional 4,541 shares during the last quarter. Finally, Comerica Bank bought a new stake in Lithia Motors during the third quarter worth approximately $4,608,000.

Lithia Motors Stock Performance

The stock has a market cap of $7.10 billion, a price-to-earnings ratio of 7.61, a price-to-earnings-growth ratio of 2.10 and a beta of 1.58. The company’s 50-day simple moving average is $284.15 and its 200-day simple moving average is $283.85. The company has a quick ratio of 0.45, a current ratio of 1.17 and a debt-to-equity ratio of 1.16.

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.