Lithia Motors (NYSE:LAD) Hits New 12-Month High – Time to Buy?

Lithia Motors, Inc. (NYSE:LAD) shares reached a new 52-week high during trading on Tuesday . The company traded as high as $361.24 and last traded at $358.0240, with a volume of 422131 shares trading hands. The stock had previously closed at $345.48.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on LAD. Wells Fargo & Company raised their price target on Lithia Motors from $305.00 to $306.00 and gave the stock an “equal weight” rating in a research note on Monday, July 6th. Bank of America increased their target price on Lithia Motors from $350.00 to $417.00 and gave the stock a “buy” rating in a research note on Thursday, July 9th. Zacks Research upgraded Lithia Motors from a “strong sell” rating to a “hold” rating in a research report on Thursday, April 23rd. Wall Street Zen lowered shares of Lithia Motors from a “hold” rating to a “sell” rating in a research note on Monday, July 20th. Finally, Weiss Ratings upgraded shares of Lithia Motors from a “hold (c-)” rating to a “hold (c)” rating in a report on Tuesday, July 21st. Eight analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $380.33.

Lithia Motors Stock Up 3.6%

The stock has a market cap of $8.17 billion, a PE ratio of 12.57, a price-to-earnings-growth ratio of 0.80 and a beta of 1.26. The business has a fifty day moving average of $303.79 and a 200-day moving average of $294.02. The company has a debt-to-equity ratio of 1.41, a current ratio of 0.99 and a quick ratio of 0.24.

Lithia Motors (NYSE:LAD) last released its quarterly earnings data on Wednesday, April 29th. The company reported $7.34 EPS for the quarter, topping the consensus estimate of $7.06 by $0.28. Lithia Motors had a return on equity of 12.49% and a net margin of 1.88%.The company had revenue of $9.27 billion for the quarter, compared to the consensus estimate of $9.22 billion. During the same period last year, the business posted $7.66 EPS. Lithia Motors’s quarterly revenue was up 1.0% on a year-over-year basis. Equities research analysts anticipate that Lithia Motors, Inc. will post 34.19 earnings per share for the current year.

Lithia Motors declared that its Board of Directors has approved a stock repurchase plan on Tuesday, May 26th that permits the company to buyback $500.00 million in outstanding shares. This buyback authorization permits the company to reacquire up to 7.9% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s management believes its stock is undervalued.

Insider Activity

In other Lithia Motors news, Director Shauna Mcintyre sold 165 shares of the stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $305.64, for a total transaction of $50,430.60. Following the transaction, the director directly owned 1,681 shares in the company, valued at $513,780.84. This represents a 8.94% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Richard J. Bailey, Jr. sold 297 shares of the firm’s stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $280.57, for a total transaction of $83,329.29. Following the transaction, the director directly owned 760 shares in the company, valued at $213,233.20. This trade represents a 28.10% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 782 shares of company stock valued at $229,572 over the last 90 days. 1.08% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Lithia Motors

Several hedge funds have recently modified their holdings of the business. Clearstead Advisors LLC increased its holdings in Lithia Motors by 111.4% during the fourth quarter. Clearstead Advisors LLC now owns 93 shares of the company’s stock valued at $31,000 after buying an additional 49 shares during the period. V Square Quantitative Management LLC purchased a new stake in Lithia Motors during the fourth quarter worth $34,000. Quarry LP boosted its position 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 acquiring an additional 55 shares in the last quarter. Versant Capital Management Inc boosted its position in Lithia Motors by 1,311.1% during the 2nd quarter. Versant Capital Management Inc now owns 127 shares of the company’s stock valued at $37,000 after acquiring an additional 118 shares in the last quarter. Finally, Los Angeles Capital Management LLC purchased a new position in shares of Lithia Motors in the 4th quarter valued at $38,000.

Lithia Motors Company Profile

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.