Lithia Motors (NYSE:LAD) Hits New 52-Week High on Earnings Beat

Lithia Motors, Inc. (NYSE:LAD)’s stock price reached a new 52-week high on Wednesday following a stronger than expected earnings report. The company traded as high as $332.32 and last traded at $328.45, with a volume of 84443 shares. The stock had previously closed at $304.54.

The company reported $8.21 earnings per share (EPS) for the quarter, topping the consensus estimate of $7.60 by $0.61. Lithia Motors had a return on equity of 13.84% and a net margin of 2.52%. The firm had revenue of $9.22 billion for the quarter, compared to analysts’ expectations of $9.46 billion. During the same period last year, the business posted $9.25 earnings per share. The firm’s revenue for the quarter was up 11.4% on a year-over-year basis.

Lithia Motors Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, November 15th. Investors of record on Friday, November 8th will be paid a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a yield of 0.63%. The ex-dividend date of this dividend is Friday, November 8th. Lithia Motors’s dividend payout ratio (DPR) is presently 6.26%.

Wall Street Analyst Weigh In

A number of research firms have issued reports on LAD. Wells Fargo & Company raised their target price on Lithia Motors from $299.00 to $343.00 and gave the company an “equal weight” rating in a research note on Thursday. JPMorgan Chase & Co. raised their target price on Lithia Motors from $315.00 to $375.00 and gave the company an “overweight” rating in a research note on Tuesday, September 10th. Morgan Stanley upgraded Lithia Motors from an “underweight” rating to an “equal weight” rating and raised their target price for the company from $225.00 to $310.00 in a research note on Wednesday, September 25th. Citigroup lifted their price objective on shares of Lithia Motors from $280.00 to $320.00 and gave the company a “neutral” rating in a research note on Friday, September 27th. Finally, StockNews.com cut shares of Lithia Motors from a “hold” rating to a “sell” rating in a research note on Tuesday, August 13th. One analyst has rated the stock with a sell rating, four have issued a hold rating and six have given a buy rating to the stock. According to MarketBeat.com, Lithia Motors presently has an average rating of “Hold” and a consensus target price of $350.80.

Insider Buying and Selling

In related news, Director Sidney B. Deboer sold 11,938 shares of Lithia Motors stock in a transaction dated Friday, August 23rd. The stock was sold at an average price of $290.86, for a total transaction of $3,472,286.68. Following the transaction, the director now directly owns 46,129 shares of the company’s stock, valued at $13,417,080.94. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. In related news, Director Sidney B. Deboer sold 10,777 shares of Lithia Motors stock in a transaction dated Friday, September 13th. The stock was sold at an average price of $275.93, for a total transaction of $2,973,697.61. Following the transaction, the director now directly owns 35,352 shares of the company’s stock, valued at $9,754,677.36. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Sidney B. Deboer sold 11,938 shares of Lithia Motors stock in a transaction dated Friday, August 23rd. The stock was sold at an average price of $290.86, for a total value of $3,472,286.68. Following the transaction, the director now directly owns 46,129 shares in the company, valued at approximately $13,417,080.94. The trade was a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 23,021 shares of company stock valued at $6,534,617 over the last three months. Company insiders own 1.79% of the company’s stock.

Hedge Funds Weigh In On Lithia Motors

A number of institutional investors have recently bought and sold shares of LAD. Barrow Hanley Mewhinney & Strauss LLC increased its stake in Lithia Motors by 14.7% in the 2nd quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 1,700,893 shares of the company’s stock worth $429,390,000 after purchasing an additional 217,867 shares in the last quarter. Dimensional Fund Advisors LP increased its stake in Lithia Motors by 25.0% in the 2nd quarter. Dimensional Fund Advisors LP now owns 1,016,520 shares of the company’s stock worth $256,621,000 after purchasing an additional 203,543 shares in the last quarter. Bridges Investment Management Inc. increased its stake in Lithia Motors by 118.9% in the 2nd quarter. Bridges Investment Management Inc. now owns 160,860 shares of the company’s stock worth $40,609,000 after purchasing an additional 87,362 shares in the last quarter. Canada Pension Plan Investment Board increased its stake in Lithia Motors by 7.2% in the 1st quarter. Canada Pension Plan Investment Board now owns 727,849 shares of the company’s stock worth $218,981,000 after purchasing an additional 48,938 shares in the last quarter. Finally, Bank of Montreal Can increased its stake in Lithia Motors by 1,502.3% in the 2nd quarter. Bank of Montreal Can now owns 48,919 shares of the company’s stock worth $12,445,000 after purchasing an additional 45,866 shares in the last quarter.

Lithia Motors Price Performance

The stock has a 50 day moving average of $299.06 and a two-hundred day moving average of $274.82. The stock has a market cap of $9.19 billion, a PE ratio of 9.90, a PEG ratio of 0.30 and a beta of 1.64. The company has a debt-to-equity ratio of 1.26, a quick ratio of 0.30 and a current ratio of 1.19.

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.