Lithia Motors (NYSE:LAD) Stock Rating Upgraded by UBS Group

Lithia Motors (NYSE:LAD) was upgraded by research analysts at UBS Group to a “strong-buy” rating in a research note issued on Wednesday,Zacks.com reports.

A number of other equities analysts have also recently commented on the company. Weiss Ratings cut Lithia Motors from a “hold (c)” rating to a “hold (c-)” rating in a report on Monday, May 4th. Barclays decreased their target price on Lithia Motors from $380.00 to $370.00 and set an “overweight” rating on the stock in a report on Tuesday, April 7th. Wall Street Zen cut Lithia Motors from a “hold” rating to a “sell” rating in a report on Saturday, February 28th. Wells Fargo & Company raised their target price on Lithia Motors from $293.00 to $305.00 and gave the stock an “equal weight” rating in a report on Thursday, April 30th. Finally, Bank of America decreased their target price on Lithia Motors from $335.00 to $320.00 in a report on Monday, April 13th. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat, Lithia Motors has an average rating of “Moderate Buy” and an average target price of $365.30.

Lithia Motors Price Performance

NYSE LAD opened at $296.22 on Wednesday. Lithia Motors has a 1-year low of $239.78 and a 1-year high of $360.55. The business’s fifty day moving average price is $270.59 and its 200-day moving average price is $298.62. The stock has a market capitalization of $6.76 billion, a price-to-earnings ratio of 10.40, a PEG ratio of 0.65 and a beta of 1.28. 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 (NYSE:LAD) last announced its earnings results on Wednesday, April 29th. The company reported $7.34 EPS for the quarter, topping analysts’ consensus estimates of $7.06 by $0.28. Lithia Motors had a return on equity of 12.49% and a net margin of 1.88%.The company had revenue of $9.27 billion for the quarter, compared to analysts’ expectations of $9.22 billion. During the same period last year, the firm earned $7.66 EPS. Lithia Motors’s revenue for the quarter was up 1.0% compared to the same quarter last year. On average, equities analysts predict that Lithia Motors will post 34.26 earnings per share for the current year.

Lithia Motors announced that its board has approved a share buyback plan on Tuesday, May 26th that allows the company to buyback $500.00 million in outstanding shares. This buyback authorization allows the company to purchase up to 7.9% of its shares through open market purchases. Shares buyback plans are typically an indication that the company’s leadership believes its shares are undervalued.

Insider Transactions at Lithia Motors

In other Lithia Motors news, Director Shauna Mcintyre sold 245 shares of the firm’s stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $294.64, for a total transaction of $72,186.80. Following the sale, the director directly owned 1,846 shares of the company’s stock, valued at $543,905.44. This trade represents a 11.72% 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 Richard J. Bailey, Jr. sold 297 shares of the firm’s stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $280.57, for a total value of $83,329.29. Following the sale, the director directly owned 760 shares in the company, valued at approximately $213,233.20. This represents a 28.10% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 617 shares of company stock worth $174,966. Insiders own 1.08% of the company’s stock.

Institutional Investors Weigh In On Lithia Motors

A number of institutional investors and hedge funds have recently bought and sold shares of LAD. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in Lithia Motors by 13.9% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 8,474 shares of the company’s stock valued at $2,487,000 after acquiring an additional 1,032 shares during the period. Goldman Sachs Group Inc. raised its holdings in Lithia Motors by 67.6% during the first quarter. Goldman Sachs Group Inc. now owns 113,346 shares of the company’s stock valued at $33,272,000 after acquiring an additional 45,716 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in Lithia Motors by 16.8% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 93,170 shares of the company’s stock valued at $27,349,000 after acquiring an additional 13,407 shares during the period. Federated Hermes Inc. raised its holdings in Lithia Motors by 16.2% during the second quarter. Federated Hermes Inc. now owns 2,430 shares of the company’s stock valued at $821,000 after acquiring an additional 338 shares during the period. Finally, WINTON GROUP Ltd bought a new stake in Lithia Motors during the second quarter valued at about $651,000.

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.