Lithia Motors (NYSE:LAD) Shares Gap Down on Disappointing Earnings

Lithia Motors, Inc. (NYSE:LAD) gapped down before the market opened on Wednesday after the company announced weaker than expected quarterly earnings. 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 trading hands.

The company reported $6.11 EPS for the quarter, missing the consensus estimate of $7.85 by ($1.74). The business had revenue of $8.56 billion during the quarter, compared to the consensus estimate 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 last year, the firm posted $8.44 earnings per share.

Lithia Motors Increases Dividend

The business also recently disclosed 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 annualized dividend and a yield of 0.82%. The ex-dividend date of this dividend is Thursday, May 9th. This is an increase from Lithia Motors’s previous quarterly dividend of $0.50. Lithia Motors’s payout ratio is presently 5.90%.

Analyst Ratings Changes

Several research firms have issued reports on LAD. Guggenheim cut their price objective on Lithia Motors from $320.00 to $297.00 and set a “buy” rating on the stock in a report on Wednesday, April 17th. Bank of America boosted their price objective on Lithia Motors from $380.00 to $385.00 and gave the stock a “buy” rating in a report on Wednesday, April 10th. Stephens restated an “overweight” rating and set a $375.00 price objective on shares of Lithia Motors in a report on Wednesday, February 14th. StockNews.com upgraded Lithia Motors from a “sell” rating to a “hold” rating in a report on Friday. Finally, Wells Fargo & Company lowered their target price on 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 assigned a buy rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $320.82.

Insider Activity 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 value of $40,208.40. Following the completion of the sale, the director now owns 1,662 shares of the company’s stock, valued at approximately $495,010.08. The sale was disclosed in a document filed with the SEC, which is available at this link. 1.79% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Lithia Motors

Several large investors have recently made changes to their positions in the company. FourThought Financial Partners LLC boosted its position in Lithia Motors by 2.4% during the fourth quarter. FourThought Financial Partners LLC now owns 1,609 shares of the company’s stock worth $530,000 after purchasing an additional 37 shares during the period. Xponance Inc. boosted its position in Lithia Motors by 1.1% during the fourth quarter. Xponance Inc. now owns 3,492 shares of the company’s stock worth $1,150,000 after purchasing an additional 38 shares during the period. Fifth Third Bancorp boosted its position in Lithia Motors by 32.0% during the third quarter. Fifth Third Bancorp now owns 231 shares of the company’s stock worth $68,000 after purchasing an additional 56 shares during the period. Victory Capital Management Inc. boosted its position in Lithia Motors by 0.3% during the third quarter. Victory Capital Management Inc. now owns 17,113 shares of the company’s stock worth $5,054,000 after purchasing an additional 59 shares during the period. Finally, Treasurer of the State of North Carolina boosted its position in Lithia Motors by 0.5% during the third quarter. Treasurer of the State of North Carolina now owns 11,886 shares of the company’s stock worth $3,510,000 after purchasing an additional 60 shares during the period.

Lithia Motors Stock Up 3.8 %

The stock has a market cap of $7.10 billion, a P/E ratio of 7.61, a PEG ratio of 2.10 and a beta of 1.58. The company has a quick ratio of 0.45, a current ratio of 1.17 and a debt-to-equity ratio of 1.16. The business has a 50-day simple moving average of $284.15 and a 200-day simple moving average of $283.85.

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.