Lithia Motors, Inc. (NYSE:LAD) Raises Dividend to $0.70 Per Share

Lithia Motors, Inc. (NYSE:LAD) declared a quarterly dividend on Wednesday, July 29th. Stockholders of record on Friday, August 7th will be paid a dividend of 0.70 per share on Friday, August 21st. This represents a c) dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date is Friday, August 7th. This is a 22.8% increase from Lithia Motors’s previous quarterly dividend of $0.57.

Lithia Motors has increased its dividend by an average of 0.1%annually over the last three years and has raised its dividend annually for the last 16 consecutive years. Lithia Motors has a payout ratio of 6.1% meaning its dividend is sufficiently covered by earnings. Research analysts expect Lithia Motors to earn $40.04 per share next year, which means the company should continue to be able to cover its $2.28 annual dividend with an expected future payout ratio of 5.7%.

Lithia Motors Trading Up 18.7%

Shares of Lithia Motors stock traded up $67.04 on Wednesday, hitting $425.35. The stock had a trading volume of 1,716,907 shares, compared to its average volume of 318,702. The stock has a 50 day moving average of $305.81 and a 200 day moving average of $294.24. The firm has a market capitalization of $9.70 billion, a P/E ratio of 14.94, a PEG ratio of 0.81 and a beta of 1.26. Lithia Motors has a twelve month low of $239.78 and a twelve month high of $439.49. The company has a debt-to-equity ratio of 1.41, a quick ratio of 0.24 and a current ratio of 0.99.

Lithia Motors (NYSE:LAD) last announced its earnings results on Wednesday, July 29th. The company reported $10.03 EPS for the quarter, beating the consensus estimate of $8.73 by $1.30. Lithia Motors had a return on equity of 12.49% and a net margin of 1.88%.The business had revenue of $9.79 billion for the quarter, compared to analysts’ expectations of $9.64 billion. During the same period in the prior year, the business posted $10.24 earnings per share. The firm’s revenue was up 2.2% on a year-over-year basis. Sell-side analysts expect that Lithia Motors will post 34.19 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Shauna Mcintyre sold 165 shares of Lithia Motors stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $305.64, for a total value of $50,430.60. Following the transaction, the director owned 1,681 shares in the company, valued at $513,780.84. This trade represents a 8.94% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Richard J. Bailey, Jr. sold 297 shares of the business’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 completion of the sale, the director directly owned 760 shares of the company’s stock, valued at approximately $213,233.20. This trade represents a 28.10% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 782 shares of company stock valued at $229,572 in the last 90 days. 1.08% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Clearstead Advisors LLC boosted its stake in Lithia Motors by 111.4% in the 4th quarter. Clearstead Advisors LLC now owns 93 shares of the company’s stock worth $31,000 after purchasing an additional 49 shares in the last quarter. V Square Quantitative Management LLC bought a new stake in Lithia Motors during the 4th quarter valued at about $34,000. Quarry LP increased its stake in Lithia Motors by 101.9% during the 4th quarter. Quarry LP now owns 109 shares of the company’s stock valued at $36,000 after purchasing an additional 55 shares in the last quarter. Versant Capital Management Inc raised its holdings in Lithia Motors by 1,311.1% in the second quarter. Versant Capital Management Inc now owns 127 shares of the company’s stock worth $37,000 after buying an additional 118 shares during the last quarter. Finally, Los Angeles Capital Management LLC bought a new position in shares of Lithia Motors in the fourth quarter worth approximately $38,000.

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.