Lithia Motors (NYSE:LAD) Shares Gap Up Following Strong Earnings

Lithia Motors, Inc. (NYSE:LAD - Get Free Report) shares gapped up before the market opened on Wednesday following a stronger than expected earnings report. The stock had previously closed at $368.69, but opened at $400.00. Lithia Motors shares last traded at $386.60, with a volume of 99,288 shares.

The company reported $7.79 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $7.33 by $0.46. Lithia Motors had a return on equity of 12.95% and a net margin of 2.31%.

Lithia Motors Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, March 21st. Investors of record on Friday, March 7th will be issued a dividend of $0.53 per share. The ex-dividend date of this dividend is Friday, March 7th. This represents a $2.12 dividend on an annualized basis and a yield of 0.56%. Lithia Motors's dividend payout ratio is presently 7.14%.

Analyst Upgrades and Downgrades

LAD has been the subject of a number of research analyst reports. Guggenheim raised their target price on Lithia Motors from $380.00 to $418.00 and gave the company a "buy" rating in a research note on Thursday, November 21st. Stephens boosted their price objective on shares of Lithia Motors from $360.00 to $405.00 and gave the stock an "overweight" rating in a report on Thursday, October 24th. JPMorgan Chase & Co. decreased their price objective on shares of Lithia Motors from $405.00 to $400.00 and set an "overweight" rating for the company in a report on Friday, January 17th. Wells Fargo & Company upped their price target on shares of Lithia Motors from $346.00 to $397.00 and gave the company an "equal weight" rating in a research report on Thursday. Finally, Benchmark began coverage on shares of Lithia Motors in a research report on Wednesday, January 8th. They set a "buy" rating and a $400.00 price target for the company. Five research analysts have rated the stock with a hold rating and six have assigned a buy rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $362.50.

Insiders Place Their Bets

In related news, COO Adam Chamberlain sold 403 shares of the firm's stock in a transaction on Friday, February 14th. The shares were sold at an average price of $384.28, for a total transaction of $154,864.84. Following the completion of the transaction, the chief operating officer now directly owns 2,605 shares of the company's stock, valued at approximately $1,001,049.40. This trade represents a 13.40 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Gary M. Glandon sold 325 shares of the business's stock in a transaction dated Thursday, February 13th. The stock was sold at an average price of $387.86, for a total value of $126,054.50. Following the completion of the sale, the insider now owns 1,665 shares in the company, valued at $645,786.90. This represents a 16.33 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 20,339 shares of company stock worth $7,997,621. Corporate insiders own 1.79% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of LAD. Atlas Capital Advisors Inc. purchased a new stake in shares of Lithia Motors during the 4th quarter valued at about $34,000. V Square Quantitative Management LLC bought a new stake in Lithia Motors in the third quarter worth $35,000. SBI Securities Co. Ltd. purchased a new position in Lithia Motors during the fourth quarter worth $35,000. UMB Bank n.a. lifted its holdings in shares of Lithia Motors by 69.9% in the 4th quarter. UMB Bank n.a. now owns 124 shares of the company's stock worth $44,000 after acquiring an additional 51 shares during the last quarter. Finally, Rakuten Securities Inc. boosted its stake in shares of Lithia Motors by 1,420.0% during the 4th quarter. Rakuten Securities Inc. now owns 152 shares of the company's stock worth $54,000 after purchasing an additional 142 shares during the period.

Lithia Motors Price Performance

The company has a debt-to-equity ratio of 1.23, a quick ratio of 0.27 and a current ratio of 1.18. The company has a market capitalization of $10.13 billion, a P/E ratio of 12.98, a P/E/G ratio of 4.90 and a beta of 1.67. The firm's fifty day moving average is $363.40 and its 200 day moving average is $335.37.

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.