Lithia Motors (NYSE:LAD) Sets New 12-Month High – Still a Buy?

Lithia Motors, Inc. (NYSE:LAD) shares reached a new 52-week high during mid-day trading on Wednesday . The company traded as high as $332.32 and last traded at $328.45, with a volume of 84443 shares trading hands. The stock had previously closed at $304.54.

Wall Street Analyst Weigh In

A number of analysts have weighed in on the company. Stephens assumed coverage on Lithia Motors in a research report on Thursday, September 12th. They issued an “overweight” rating and a $360.00 price target for the company. JPMorgan Chase & Co. boosted their price target on Lithia Motors from $315.00 to $375.00 and gave the stock an “overweight” rating in a research report on Tuesday, September 10th. Citigroup boosted their price target on Lithia Motors from $280.00 to $320.00 and gave the stock a “neutral” rating in a research report on Friday, September 27th. Bank of America boosted their price target on Lithia Motors from $320.00 to $330.00 and gave the stock a “buy” rating in a research report on Monday, July 22nd. Finally, Guggenheim raised Lithia Motors from a “neutral” rating to a “buy” rating and set a $338.00 price objective for the company in a research report on Friday, August 9th. One analyst has rated the stock with a sell rating, four have issued a hold rating and six have assigned a buy rating to the stock. Based on data from MarketBeat, Lithia Motors has a consensus rating of “Hold” and a consensus price target of $337.70.

Lithia Motors Stock Up 7.7 %

The company has a debt-to-equity ratio of 1.26, a current ratio of 1.19 and a quick ratio of 0.30. The stock has a market capitalization of $8.99 billion, a P/E ratio of 9.68, a price-to-earnings-growth ratio of 0.30 and a beta of 1.64. The firm has a 50 day moving average of $297.10 and a 200-day moving average of $273.97.

Lithia Motors (NYSE:LAD) last issued its quarterly earnings results on Thursday, August 1st. The company reported $7.87 earnings per share (EPS) for the quarter, beating the consensus estimate of $7.09 by $0.78. Lithia Motors had a return on equity of 13.84% and a net margin of 2.52%. The firm had revenue of $9.23 billion for the quarter, compared to analyst estimates of $9.29 billion. During the same period in the previous year, the company posted $10.91 earnings per share. The company’s quarterly revenue was up 13.8% compared to the same quarter last year. On average, equities research analysts expect that Lithia Motors, Inc. will post 28.74 earnings per share for the current fiscal year.

Lithia Motors Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 23rd. Stockholders of record on Friday, August 9th were paid a $0.53 dividend. The ex-dividend date was Friday, August 9th. This represents a $2.12 annualized dividend and a dividend yield of 0.65%. Lithia Motors’s dividend payout ratio is currently 6.26%.

Insider Activity

In related news, Director Sidney B. Deboer sold 11,938 shares of the stock in a transaction that occurred on 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 sale, the director now directly owns 46,129 shares in the company, valued at $13,417,080.94. This represents a 0.00 % decrease in their position. 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 11,938 shares of the stock in a transaction that occurred on 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 sale, the director now directly owns 46,129 shares in the company, valued at $13,417,080.94. This represents a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Shauna Mcintyre sold 306 shares of the stock in a transaction that occurred on Friday, August 2nd. The stock was sold at an average price of $289.65, for a total value of $88,632.90. Following the sale, the director now owns 1,922 shares in the company, valued at approximately $556,707.30. This trade represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 23,021 shares of company stock worth $6,534,617. Company insiders own 1.79% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of LAD. Goldman Sachs Group Inc. lifted its holdings in Lithia Motors by 24.6% during the 4th quarter. Goldman Sachs Group Inc. now owns 49,797 shares of the company’s stock worth $16,397,000 after buying an additional 9,818 shares in the last quarter. Wellington Management Group LLP lifted its holdings in Lithia Motors by 413.6% during the 4th quarter. Wellington Management Group LLP now owns 65,142 shares of the company’s stock worth $21,450,000 after buying an additional 52,458 shares in the last quarter. Wealth Enhancement Advisory Services LLC lifted its holdings in Lithia Motors by 4.1% during the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 2,489 shares of the company’s stock worth $749,000 after buying an additional 98 shares in the last quarter. Sendero Wealth Management LLC lifted its holdings in Lithia Motors by 15.7% during the 1st quarter. Sendero Wealth Management LLC now owns 11,949 shares of the company’s stock worth $3,595,000 after buying an additional 1,617 shares in the last quarter. Finally, State of Michigan Retirement System lifted its holdings in Lithia Motors by 3.0% during the 1st quarter. State of Michigan Retirement System now owns 6,787 shares of the company’s stock worth $2,042,000 after buying an additional 200 shares in the last quarter.

About Lithia Motors

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.