Lithia Motors, Inc. (NYSE:LAD) Announces Dividend Increase – $0.53 Per Share

Lithia Motors, Inc. (NYSE:LAD) announced a quarterly dividend on Wednesday, April 24th, Zacks reports. Stockholders of record on Friday, May 10th will be paid a dividend of 0.53 per share on Friday, May 24th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.80%. The ex-dividend date is Thursday, May 9th. This is a boost from Lithia Motors’s previous quarterly dividend of $0.50.

Lithia Motors has raised its dividend by an average of 16.3% annually over the last three years and has raised its dividend every year for the last 15 years. Lithia Motors has a payout ratio of 5.9% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Lithia Motors to earn $39.26 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 5.4%.

Lithia Motors Stock Performance

Shares of NYSE LAD opened at $263.46 on Wednesday. The firm has a fifty day moving average price of $278.41 and a 200-day moving average price of $283.21. The company has a debt-to-equity ratio of 1.17, a current ratio of 1.17 and a quick ratio of 0.28. The stock has a market cap of $7.22 billion, a PE ratio of 7.78, a price-to-earnings-growth ratio of 2.31 and a beta of 1.59. Lithia Motors has a 1 year low of $207.08 and a 1 year high of $331.96.

Lithia Motors (NYSE:LAD) last announced its quarterly earnings data on Wednesday, April 24th. The company reported $6.11 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $7.85 by ($1.74). The firm had revenue of $8.56 billion during the quarter, compared to analysts’ expectations of $8.58 billion. Lithia Motors had a return on equity of 15.62% and a net margin of 2.87%. The business’s revenue for the quarter was up 22.7% on a year-over-year basis. During the same period last year, the company earned $8.44 earnings per share. Equities analysts anticipate that Lithia Motors will post 32.24 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Shauna Mcintyre sold 138 shares of the firm’s stock in a transaction dated Wednesday, May 1st. The shares were sold at an average price of $254.42, for a total value of $35,109.96. Following the completion of the sale, the director now owns 2,228 shares in the company, valued at approximately $566,847.76. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 1.79% of the company’s stock.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on the stock. The Goldman Sachs Group raised their target price on shares of Lithia Motors from $300.00 to $334.00 and gave the company a “neutral” rating in a research note on Thursday, February 15th. Morgan Stanley raised their target price on shares of Lithia Motors from $220.00 to $230.00 and gave the company an “underweight” rating in a research note on Thursday, February 29th. Wells Fargo & Company cut their target price on shares of Lithia Motors from $290.00 to $248.00 and set an “equal weight” rating for the company in a research note on Thursday, April 25th. Bank of America raised their target price on shares of Lithia Motors from $380.00 to $385.00 and gave the company a “buy” rating in a research note on Wednesday, April 10th. Finally, Craig Hallum cut their target price on shares of Lithia Motors from $350.00 to $310.00 and set a “buy” rating for the company in a research note on Thursday, April 25th. One research analyst has rated the stock with a sell rating, five have assigned a hold rating and five have given a buy rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $318.55.

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.