Lithia Motors, Inc. (NYSE:LAD) to Issue $0.53 Quarterly Dividend

Lithia Motors, Inc. (NYSE:LAD) declared a quarterly dividend on Monday, February 10th, Wall Street Journal reports. Investors of record on Friday, March 7th will be given a dividend of 0.53 per share on Friday, March 21st. This represents a $2.12 annualized dividend and a yield of 0.67%. The ex-dividend date of this dividend is Friday, March 7th.

Lithia Motors has increased its dividend by an average of 15.4% per year over the last three years and has raised its dividend every year for the last 15 years. Lithia Motors has a dividend payout ratio of 5.2% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Lithia Motors to earn $40.30 per share next year, which means the company should continue to be able to cover its $2.12 annual dividend with an expected future payout ratio of 5.3%.

Lithia Motors Price Performance

Lithia Motors stock traded down $0.86 during trading hours on Wednesday, hitting $317.25. The stock had a trading volume of 10,195 shares, compared to its average volume of 375,987. Lithia Motors has a 1-year low of $243.00 and a 1-year high of $405.67. The stock has a market capitalization of $8.34 billion, a price-to-earnings ratio of 10.68, a PEG ratio of 4.65 and a beta of 1.67. The stock’s fifty day moving average is $358.44 and its two-hundred day moving average is $341.38. 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 quarterly earnings data on Wednesday, February 12th. The company reported $7.79 EPS for the quarter, beating 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%. As a group, analysts predict that Lithia Motors will post 34.45 earnings per share for the current fiscal year.

Insider Activity

In related news, COO Adam Chamberlain sold 403 shares of the business’s stock in a transaction dated Friday, February 14th. The stock was sold at an average price of $384.28, for a total value of $154,864.84. Following the transaction, the chief operating officer now owns 2,605 shares in the company, valued at approximately $1,001,049.40. The trade was a 13.40 % 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. Also, insider Gary M. Glandon sold 325 shares of the company’s stock in a transaction that occurred on Thursday, February 13th. The shares were sold at an average price of $387.86, for a total value of $126,054.50. Following the completion of the transaction, the insider now directly owns 1,665 shares in the company, 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 own 1.79% of the company’s stock.

Analysts Set New Price Targets

A number of research firms recently issued reports on LAD. Guggenheim upped their target price on Lithia Motors from $380.00 to $418.00 and gave the company a “buy” rating in a research note on Thursday, November 21st. StockNews.com upgraded Lithia Motors from a “sell” rating to a “hold” rating in a research report on Tuesday, January 14th. Evercore ISI boosted their target price 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. JPMorgan Chase & Co. upped their target price on shares of Lithia Motors from $400.00 to $420.00 and gave the company an “overweight” rating in a report on Wednesday, February 19th. Finally, Wells Fargo & Company lifted their price target on shares of Lithia Motors from $346.00 to $397.00 and gave the stock an “equal weight” rating in a report on Thursday, February 13th. Five investment analysts have rated the stock with a hold rating and seven have given a buy rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $371.36.

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.