Shauna McIntyre, a director at Lithia Motors Inc . (NYSE:LAD), recently sold a portion of her holdings in the company. According to a recent SEC filing, McIntyre sold 377 shares of Lithia Motors common stock on November 11, 2024, at a price of $375 per share. This transaction totaled $141,375. Following the sale, McIntyre continues to hold 1,545 shares directly. Lithia Motors, based in Medford, Oregon, is a prominent player in the retail auto dealership industry.
In other recent news, Lithia Motors has reported strong third-quarter performance with an 11% year-over-year increase in revenue, amounting to a record $9.2 billion. The company also exceeded earnings estimates, reporting an adjusted earnings per share (EPS) of $8.21, surpassing both Jefferies' and Stephens' projections. In addition to robust earnings, Lithia Motors has achieved significant cost savings, reaching $200 million in annualized savings and reducing its adjusted SG&A to 66% of gross profit.
Following these developments, both Jefferies and Stephens have raised their price targets for Lithia Motors to $400 and $405 respectively, maintaining positive ratings on the company's shares. Jefferies' analyst Bret Jordan cites the company's better-than-expected decline in new gross profit per unit and a positive trend in new vehicle volume as reasons for the upgrade.
Lithia Motors has also expanded its portfolio with new acquisitions, including three stores from Duval Motor Company, expected to contribute nearly $6 billion in annual revenues. Despite challenges in the subprime segment, the company's prime portfolio showed resilience with slight increases in delinquencies but well-managed provisions. These recent developments demonstrate Lithia Motors' commitment to a balanced capital allocation strategy and future growth.
InvestingPro Insights
While Shauna McIntyre's recent sale of Lithia Motors Inc. (NYSE:LAD) shares has caught attention, it's crucial to consider the broader financial picture of the company. According to InvestingPro data, Lithia Motors boasts a market capitalization of $9.91 billion, reflecting its significant presence in the Specialty Retail industry. The company's P/E ratio of 12.69 suggests that it may be undervalued compared to industry peers.
Lithia Motors has demonstrated strong financial performance, with revenue reaching $34.69 billion in the last twelve months as of Q3 2024, representing a robust growth of 14.43%. This growth trajectory aligns with an InvestingPro Tip indicating that 7 analysts have revised their earnings upwards for the upcoming period, potentially signaling positive expectations for the company's future performance.
Moreover, Lithia Motors has maintained a consistent dividend policy, with an InvestingPro Tip highlighting that the company has raised its dividend for 11 consecutive years. This commitment to shareholder returns is further emphasized by a current dividend yield of 0.57% and a dividend growth rate of 6% over the last twelve months.
It's worth noting that Lithia Motors' stock has shown strong momentum, with a 21.49% price total return over the past month and an impressive 40.69% return over the last six months. These figures suggest that despite the director's recent share sale, the market maintains a positive outlook on the company's prospects.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips on Lithia Motors, providing deeper insights into the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.