Lithia Motors (NYSE:LAD) Shares Break Below Two Hundred Day Moving Average – Here’s Why

Lithia Motors, Inc. (NYSE:LAD) crossed below its 200-day moving average during trading on Tuesday. The stock has a 200-day moving average of $307.07 and traded as low as $303.95. Lithia Motors shares last traded at $305.6650, with a volume of 136,523 shares trading hands.

Analysts Set New Price Targets

A number of research firms have weighed in on LAD. Wall Street Zen raised Lithia Motors from a “sell” rating to a “hold” rating in a research report on Saturday, August 1st. Weiss Ratings cut shares of Lithia Motors from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, October 14th. Citigroup cut their price objective on shares of Lithia Motors from $409.00 to $386.00 and set a “buy” rating for the company in a research report on Friday, October 23rd. UBS Group cut their price objective on shares of Lithia Motors from $335.00 to $305.00 and set a “neutral” rating for the company in a research report on Thursday, October 22nd. Finally, Barclays reduced their target price on shares of Lithia Motors from $375.00 to $345.00 and set an “overweight” rating for the company in a research note on Friday, October 23rd. Six analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $393.80.

Lithia Motors Price Performance

The stock has a fifty day simple moving average of $313.84 and a two-hundred day simple moving average of $307.07. The company has a market cap of $6.61 billion, a PE ratio of 8.79, a price-to-earnings-growth ratio of 0.72 and a beta of 1.30. The company has a current ratio of 1.00, a quick ratio of 0.21 and a debt-to-equity ratio of 1.44.

Lithia Motors (NYSE:LAD) last issued its earnings results on Wednesday, October 21st. The company reported $10.34 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $9.70 by $0.64. The business had revenue of $9.95 billion during the quarter, compared to the consensus estimate of $9.75 billion. Lithia Motors had a return on equity of 12.05% and a net margin of 2.06%. The company’s revenue for the quarter was up 2.8% on a year-over-year basis. During the same period in the prior year, the business posted $9.50 EPS. On average, equities analysts predict that Lithia Motors, Inc. will post 35.83 EPS for the current fiscal year.

Lithia Motors Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, November 20th. Investors of record on Friday, November 6th will be issued a dividend of $0.75 per share. This is a boost from Lithia Motors’s previous quarterly dividend of $0.70. This represents a $3.00 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date of this dividend is Friday, November 6th. Lithia Motors’s dividend payout ratio is currently 8.63%.

Insider Transactions at Lithia Motors

In other Lithia Motors news, Director Stacy Congdon sold 75 shares of the stock in a transaction on Friday, September 11th. The stock was sold at an average price of $370.73, for a total value of $27,804.75. Following the completion of the transaction, the director owned 2,300 shares in the company, valued at approximately $852,679. This represents a 3.16% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 1.08% of the company’s stock.

Hedge Funds Weigh In On Lithia Motors

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Addison Advisors LLC purchased a new position in shares of Lithia Motors in the 2nd quarter valued at about $30,000. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in shares of Lithia Motors during the 2nd quarter worth approximately $30,000. Versant Capital Management Inc grew its holdings in shares of Lithia Motors by 1,311.1% in the 2nd quarter. Versant Capital Management Inc now owns 127 shares of the company’s stock worth $37,000 after acquiring an additional 118 shares during the period. Bessemer Group Inc. increased its stake in Lithia Motors by 68.0% in the 1st quarter. Bessemer Group Inc. now owns 173 shares of the company’s stock valued at $43,000 after purchasing an additional 70 shares in the last quarter. Finally, GAMMA Investing LLC increased its stake in Lithia Motors by 32.1% in the 2nd quarter. GAMMA Investing LLC now owns 173 shares of the company’s stock valued at $50,000 after purchasing an additional 42 shares in the last quarter.

About Lithia Motors

Lithia Motors, Inc. is an automotive retailer that sells new and pre-owned vehicles through a network of franchised dealerships. Its dealerships represent a range of vehicle manufacturers and also offer related products and services, including parts, maintenance and repairs, and vehicle financing and insurance options. The company traces its roots to a single dealership established in Ashland, Oregon, in 1946. It has since expanded its retail operations across the United States, Canada and the United Kingdom.