Convergence Investment Partners LLC Sells 76 Shares of Lithia Motors, Inc. $LAD

Convergence Investment Partners LLC reduced its holdings in shares of Lithia Motors, Inc. (NYSE:LAD) by 2.2% in the second quarter, according to its most recent filing with the SEC. The fund owned 3,399 shares of the company’s stock after selling 76 shares during the period. Convergence Investment Partners LLC’s holdings in Lithia Motors were worth $1,148,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Bessemer Group Inc. lifted its stake in shares of Lithia Motors by 114.6% during the 2nd quarter. Bessemer Group Inc. now owns 88 shares of the company’s stock worth $29,000 after acquiring an additional 47 shares during the last quarter. Parallel Advisors LLC increased its holdings in Lithia Motors by 106.2% during the 2nd quarter. Parallel Advisors LLC now owns 134 shares of the company’s stock worth $45,000 after purchasing an additional 69 shares during the period. eCIO Inc. purchased a new position in Lithia Motors during the 1st quarter worth $55,000. CWM LLC increased its holdings in Lithia Motors by 30.1% during the 1st quarter. CWM LLC now owns 212 shares of the company’s stock worth $62,000 after purchasing an additional 49 shares during the period. Finally, GAMMA Investing LLC increased its holdings in Lithia Motors by 50.9% during the 1st quarter. GAMMA Investing LLC now owns 252 shares of the company’s stock worth $74,000 after purchasing an additional 85 shares during the period.

Insiders Place Their Bets

In related news, Director Shauna Mcintyre sold 256 shares of the business’s stock in a transaction on Thursday, July 31st. The stock was sold at an average price of $293.05, for a total transaction of $75,020.80. Following the transaction, the director directly owned 1,376 shares in the company, valued at $403,236.80. The trade was a 15.69% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 0.87% of the stock is currently owned by company insiders.

Lithia Motors Stock Down 3.0%

Shares of LAD stock opened at $321.68 on Tuesday. Lithia Motors, Inc. has a 1-year low of $262.10 and a 1-year high of $405.67. The stock’s fifty day moving average price is $323.60 and its 200 day moving average price is $317.17. The company has a debt-to-equity ratio of 1.35, a current ratio of 1.21 and a quick ratio of 0.30. The company has a market cap of $8.25 billion, a price-to-earnings ratio of 9.31, a price-to-earnings-growth ratio of 0.69 and a beta of 1.28.

Lithia Motors (NYSE:LAD) last announced its earnings results on Wednesday, October 22nd. The company reported $9.50 earnings per share for the quarter, topping the consensus estimate of $8.53 by $0.97. Lithia Motors had a return on equity of 13.42% and a net margin of 2.39%.The firm had revenue of $9.68 billion for the quarter, compared to the consensus estimate of $9.38 billion. During the same period in the previous year, the business earned $8.21 EPS. The firm’s revenue for the quarter was up 4.9% on a year-over-year basis. On average, research analysts expect that Lithia Motors, Inc. will post 34.45 earnings per share for the current fiscal year.

Lithia Motors declared that its Board of Directors has authorized a stock buyback program on Tuesday, August 26th that allows the company to buyback $750.00 million in outstanding shares. This buyback authorization allows the company to purchase up to 9% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s board of directors believes its shares are undervalued.

Lithia Motors Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, November 21st. Investors of record on Friday, November 7th will be paid a dividend of $0.55 per share. This represents a $2.20 annualized dividend and a yield of 0.7%. The ex-dividend date is Friday, November 7th. Lithia Motors’s payout ratio is 6.37%.

Wall Street Analyst Weigh In

Several research firms have commented on LAD. Guggenheim reduced their price objective on Lithia Motors from $383.00 to $380.00 and set a “buy” rating on the stock in a report on Monday, August 11th. Wells Fargo & Company raised their price objective on Lithia Motors from $317.00 to $327.00 and gave the stock an “equal weight” rating in a report on Wednesday, October 15th. Bank of America reduced their price objective on Lithia Motors from $500.00 to $385.00 and set a “buy” rating on the stock in a report on Wednesday, September 10th. Jefferies Financial Group started coverage on Lithia Motors in a report on Thursday, September 4th. They issued a “buy” rating and a $400.00 price target on the stock. Finally, Weiss Ratings downgraded Lithia Motors from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, October 8th. Seven research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $378.33.

Lithia Motors 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.