Lithia Motors (NYSE:LAD) Shares Gap Up After Better-Than-Expected Earnings

Lithia Motors, Inc. (NYSE:LAD)’s share price 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 changing hands.

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

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on the company. Benchmark started coverage on Lithia Motors in a research note on Wednesday, January 8th. They set a “buy” rating and a $400.00 price target for the company. Wells Fargo & Company upped their price target on Lithia Motors from $343.00 to $346.00 and gave the stock an “equal weight” rating in a research note on Wednesday, January 15th. Stephens upped their target price on Lithia Motors from $360.00 to $405.00 and gave the stock an “overweight” rating in a research report on Thursday, October 24th. JPMorgan Chase & Co. dropped their price target on shares of Lithia Motors from $405.00 to $400.00 and set an “overweight” rating on the stock in a research report on Friday, January 17th. Finally, StockNews.com upgraded shares of Lithia Motors from a “sell” rating to a “hold” rating in a research note on Tuesday, January 14th. Five research analysts have rated the stock with a hold rating and six have given a buy rating to the company. According to data from MarketBeat.com, Lithia Motors presently has an average rating of “Moderate Buy” and an average target price of $357.40.

Insider Buying and Selling

In related news, CEO Bryan B. Deboer sold 6,742 shares of Lithia Motors stock in a transaction on Monday, November 25th. The stock was sold at an average price of $400.00, for a total transaction of $2,696,800.00. Following the completion of the sale, the chief executive officer now directly owns 174,445 shares of the company’s stock, valued at $69,778,000. The trade was a 3.72 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Tina Miller sold 1,000 shares of the stock in a transaction dated Wednesday, November 27th. The shares were sold at an average price of $392.72, for a total value of $392,720.00. Following the completion of the transaction, the chief financial officer now directly owns 10,403 shares in the company, valued at $4,085,466.16. The trade was a 8.77 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 22,924 shares of company stock worth $8,975,642 in the last three months. Insiders own 1.79% of the company’s stock.

Institutional Trading of Lithia Motors

A number of institutional investors and hedge funds have recently modified their holdings of the stock. V Square Quantitative Management LLC bought a new position in Lithia Motors during the third quarter worth about $35,000. SBI Securities Co. Ltd. bought a new position in Lithia Motors in the fourth quarter valued at approximately $35,000. UMB Bank n.a. boosted its holdings in shares of Lithia Motors by 69.9% in the fourth quarter. UMB Bank n.a. now owns 124 shares of the company’s stock valued at $44,000 after buying an additional 51 shares during the period. Rakuten Securities Inc. increased its position in shares of Lithia Motors by 1,420.0% during the fourth quarter. Rakuten Securities Inc. now owns 152 shares of the company’s stock worth $54,000 after acquiring an additional 142 shares in the last quarter. Finally, GAMMA Investing LLC raised its holdings in shares of Lithia Motors by 30.5% during the fourth quarter. GAMMA Investing LLC now owns 167 shares of the company’s stock worth $60,000 after acquiring an additional 39 shares during the period.

Lithia Motors Stock Performance

The stock’s 50 day moving average is $363.11 and its two-hundred day moving average is $333.36. The stock has a market capitalization of $10.22 billion, a price-to-earnings ratio of 13.09, a price-to-earnings-growth ratio of 4.90 and a beta of 1.67. The company has a current ratio of 1.18, a quick ratio of 0.27 and a debt-to-equity ratio of 1.23.

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.