Lithia Motors (NYSE:LAD) Stock Price Down 4.4% on Analyst Downgrade

Lithia Motors, Inc. (NYSE:LAD)’s share price fell 4.4% during mid-day trading on Thursday after JPMorgan Chase & Co. lowered their price target on the stock from $420.00 to $360.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. Lithia Motors traded as low as $292.00 and last traded at $293.70. 42,312 shares were traded during trading, a decline of 86% from the average session volume of 295,493 shares. The stock had previously closed at $307.37.

Other analysts have also issued research reports about the company. StockNews.com raised Lithia Motors from a “sell” rating to a “hold” rating in a research note on Tuesday, January 14th. Benchmark reaffirmed a “buy” rating and set a $400.00 price target on shares of Lithia Motors in a research note on Thursday, February 20th. Evercore ISI upped their price objective on shares of Lithia Motors from $400.00 to $440.00 and gave the company an “outperform” rating in a research note on Tuesday, February 18th. Finally, Wells Fargo & Company boosted their price target on Lithia Motors from $346.00 to $397.00 and gave the company an “equal weight” rating in a report on Thursday, February 13th. Five equities research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $365.91.

Insider Transactions at Lithia Motors

In other news, Director Congdon Stacy Loretz sold 270 shares of the business’s stock in a transaction on Wednesday, March 12th. The shares were sold at an average price of $298.80, for a total transaction of $80,676.00. Following the transaction, the director now directly owns 1,213 shares of the company’s stock, valued at approximately $362,444.40. The trade was a 18.21 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Gary M. Glandon sold 325 shares of the firm’s stock in a transaction on Thursday, February 13th. The shares were sold at an average price of $387.86, for a total transaction of $126,054.50. Following the sale, the insider now directly owns 1,665 shares of the company’s stock, valued at approximately $645,786.90. The trade was a 16.33 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 1,246 shares of company stock worth $433,724 in the last three months. 0.87% of the stock is currently owned by company insiders.

Institutional Trading of Lithia Motors

Several large investors have recently modified their holdings of LAD. Norges Bank acquired a new stake in Lithia Motors during the 4th quarter valued at approximately $152,752,000. Egerton Capital UK LLP acquired a new position in Lithia Motors during the 4th quarter worth $113,250,000. Steadfast Capital Management LP raised its stake in shares of Lithia Motors by 137.8% in the 4th quarter. Steadfast Capital Management LP now owns 460,298 shares of the company’s stock valued at $164,524,000 after purchasing an additional 266,715 shares in the last quarter. Madison Investment Advisors LLC bought a new position in shares of Lithia Motors during the fourth quarter worth about $91,190,000. Finally, Wedge Capital Management L L P NC acquired a new position in Lithia Motors in the fourth quarter worth about $46,505,000.

Lithia Motors Stock Performance

The company has a fifty day moving average of $340.16 and a two-hundred day moving average of $342.19. The stock has a market capitalization of $7.60 billion, a P/E ratio of 9.74, a price-to-earnings-growth ratio of 4.65 and a beta of 1.69. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.19 and a quick ratio of 0.28.

Lithia Motors (NYSE:LAD) last issued its earnings results on Wednesday, February 12th. The company reported $7.79 earnings per share for the quarter, topping analysts’ consensus estimates of $7.33 by $0.46. Lithia Motors had a net margin of 2.21% and a return on equity of 12.43%. On average, equities analysts anticipate that Lithia Motors, Inc. will post 34.45 EPS for the current year.

Lithia Motors Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, March 21st. Stockholders of record on Friday, March 7th were issued a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a dividend yield of 0.73%. The ex-dividend date of this dividend was Friday, March 7th. Lithia Motors’s dividend payout ratio (DPR) is presently 7.14%.

About Lithia Motors

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.