Lithia Motors (NYSE:LAD) Shares Gap Up on Earnings Beat

Lithia Motors, Inc. (NYSE:LAD) gapped up before the market opened on Wednesday following a better than expected earnings announcement. 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 trading hands.

The company reported $7.79 EPS for the quarter, beating the consensus estimate of $7.33 by $0.46. Lithia Motors had a return on equity of 12.95% and a net margin of 2.31%.

Analyst Ratings Changes

LAD has been the topic of several recent research reports. Guggenheim increased their target price on Lithia Motors from $380.00 to $418.00 and gave the stock a “buy” rating in a research report on Thursday, November 21st. Stephens increased their price objective on Lithia Motors from $360.00 to $405.00 and gave the stock an “overweight” rating in a report on Thursday, October 24th. StockNews.com raised Lithia Motors from a “sell” rating to a “hold” rating in a report on Tuesday, January 14th. Benchmark assumed coverage on shares of Lithia Motors in a report on Wednesday, January 8th. They issued a “buy” rating and a $400.00 price target on the stock. Finally, JPMorgan Chase & Co. reduced their price objective on shares of Lithia Motors from $405.00 to $400.00 and set an “overweight” rating for the company in a research note on Friday, January 17th. Five analysts have rated the stock with a hold rating and six have issued a buy rating to the stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $357.40.

Insider Transactions at Lithia Motors

In related news, insider Gary M. Glandon sold 242 shares of Lithia Motors stock in a transaction on Thursday, November 21st. The shares were sold at an average price of $382.86, for a total value of $92,652.12. Following the transaction, the insider now owns 1,729 shares in the company, valued at $661,964.94. This trade represents a 12.28 % 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, CFO Tina Miller sold 1,000 shares of the business’s stock in a transaction on Wednesday, November 27th. The stock was sold at an average price of $392.72, for a total transaction of $392,720.00. Following the completion of the sale, the chief financial officer now directly owns 10,403 shares of the company’s stock, valued at $4,085,466.16. This represents a 8.77 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 19,611 shares of company stock worth $7,716,702. 1.79% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Lithia Motors

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Atlas Capital Advisors Inc. purchased a new stake in shares of Lithia Motors during the fourth quarter valued at approximately $34,000. V Square Quantitative Management LLC bought a new stake in Lithia Motors during the 3rd quarter valued at $35,000. SBI Securities Co. Ltd. purchased a new stake in Lithia Motors during the 4th quarter valued at $35,000. UMB Bank n.a. grew its holdings in 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. increased its position in shares of Lithia Motors by 1,420.0% in the fourth quarter. Rakuten Securities Inc. now owns 152 shares of the company’s stock valued at $54,000 after acquiring an additional 142 shares during the period.

Lithia Motors Trading Up 4.6 %

The company has a debt-to-equity ratio of 1.23, a current ratio of 1.18 and a quick ratio of 0.27. The firm’s 50 day moving average price is $363.18 and its 200 day moving average price is $333.72. The stock has a market capitalization of $10.27 billion, a P/E ratio of 13.16, a P/E/G ratio of 4.90 and a beta of 1.67.

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.