Bryan DeBoer, CEO of Lithia Motors Inc (NYSE:LAD), recently sold a substantial portion of his holdings in the company. According to a Form 4 filing with the Securities and Exchange Commission, DeBoer sold a total of 18,369 shares of Lithia Motors common stock over two transactions. The sales, conducted on November 22 and November 25, were executed at prices ranging from $390 to $400 per share, amounting to a total value of approximately $7.23 million.
Following these transactions, DeBoer holds 174,445 shares directly. Additionally, he indirectly holds 3,625 shares through his son. Lithia Motors, headquartered in Medford, Oregon, is a prominent player in the auto dealership industry.
In other recent news, Lithia Motors has delivered strong earnings results, with a Q3 revenue report of $9.2 billion, marking an 11% year-over-year increase. The company's adjusted earnings per share (EPS) stood at $8.21, surpassing both the estimated $8.17 and the consensus of $7.59. Following this performance, both Jefferies and Stephens raised their price targets for Lithia Motors to $400 and $405 respectively, while maintaining positive ratings.
Lithia Motors also demonstrated significant operational efficiency, achieving $200 million in annualized savings and reducing its adjusted SG&A to 66% of gross profit. The company 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 reflect a positive sentiment towards Lithia Motors' ability to capitalize on the evolving automotive market conditions. Analysts from Jefferies and Stephens suggest that Lithia Motors is well-positioned to benefit from a more supportive demand environment anticipated in the future. Factors contributing to this outlook include a potential drop in interest rates, which would reduce floorplan expenses and ease affordability challenges.
InvestingPro Insights
Bryan DeBoer's recent sale of Lithia Motors Inc (NYSE:LAD) shares comes at a time when the company's stock is trading near its 52-week high, as indicated by InvestingPro data. The stock's current price of $390.86 is 97.19% of its 52-week high, suggesting strong recent performance.
This aligns with InvestingPro Tips highlighting LAD's strong returns over various time frames. The company has shown impressive price appreciation, with a 54.32% total return over the past six months and a 46.92% return over the last year. Such robust performance may have influenced DeBoer's decision to realize some gains.
Despite the CEO's sale, it's worth noting that LAD has maintained dividend payments for 15 consecutive years and has raised its dividend for 11 consecutive years, according to InvestingPro Tips. This consistent dividend policy, coupled with a current dividend yield of 0.54%, may appeal to income-focused investors.
For those interested in a deeper analysis, InvestingPro offers 13 additional tips on Lithia Motors, providing a more comprehensive view of the company's financial health and market position.
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