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

Lithia Motors, Inc. (NYSE:LAD)’s share price gapped down prior to trading 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 analysts’ consensus estimates of $7.85 by ($1.74). The firm had revenue of $8.56 billion during the quarter, compared to analysts’ expectations of $8.58 billion. Lithia Motors had a net margin of 2.87% and a return on equity of 15.59%. The company’s revenue for the quarter was up 22.7% on a year-over-year basis. During the same period in the prior year, the company posted $8.44 earnings per share.

Lithia Motors Increases Dividend

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

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on LAD. Morgan Stanley increased their price objective on Lithia Motors from $220.00 to $230.00 and gave the company an “underweight” rating in a report on Thursday, February 29th. 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. Citigroup reduced their price objective on shares of Lithia Motors from $320.00 to $280.00 and set a “neutral” rating for the company in a research report on Thursday. Craig Hallum dropped their target price on shares of Lithia Motors from $350.00 to $310.00 and set a “buy” rating on the stock in a research report on Thursday. Finally, The Goldman Sachs Group boosted their price target on shares of Lithia Motors from $300.00 to $334.00 and gave the company a “neutral” rating in a research report on Thursday, February 15th. One equities research analyst has rated the stock with a sell rating, five have given a hold rating and five have issued a buy rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $320.82.

Insider Buying and Selling

In other Lithia Motors news, Director Shauna Mcintyre sold 135 shares of the company’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 completion of the sale, the director now directly owns 1,662 shares of the company’s stock, valued at approximately $495,010.08. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Corporate insiders own 1.79% of the company’s stock.

Hedge Funds Weigh In On Lithia Motors

A number of large investors have recently bought and sold shares of LAD. Allspring Global Investments Holdings LLC acquired a new position in shares of Lithia Motors during the third quarter worth about $32,000. Denali Advisors LLC increased its position in Lithia Motors by 5,050.0% during the 4th quarter. Denali Advisors LLC now owns 103 shares of the company’s stock worth $34,000 after purchasing an additional 101 shares during the period. JFS Wealth Advisors LLC raised its stake in shares of Lithia Motors by 509.5% during the 3rd quarter. JFS Wealth Advisors LLC now owns 128 shares of the company’s stock worth $38,000 after buying an additional 107 shares in the last quarter. GAMMA Investing LLC acquired a new stake in shares of Lithia Motors in the 4th quarter valued at approximately $49,000. Finally, Rise Advisors LLC boosted its stake in shares of Lithia Motors by 80.2% in the first quarter. Rise Advisors LLC now owns 191 shares of the company’s stock valued at $57,000 after buying an additional 85 shares in the last quarter.

Lithia Motors Price Performance

The stock has a fifty day moving average of $284.15 and a two-hundred day moving average of $283.85. 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 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.