MEDFORD, OR—Tina Miller, the Chief Financial Officer of Lithia Motors Inc . (NYSE:LAD), recently sold 1,000 shares of the company's common stock. The transaction, which took place on November 27, 2024, was executed at a price of $392.72 per share, amounting to a total sale value of $392,720.
Following this transaction, Miller retains ownership of 10,403 shares in the company. The sale was conducted as a direct ownership transaction, indicating that the shares sold were directly held by Miller.
Lithia Motors Inc., headquartered in Medford, Oregon, is a prominent player in the retail automotive sector. The company continues to be a significant force in the industry, with its stock transactions closely watched by investors.
In other recent news, Lithia Motors has reported significant growth in its third-quarter earnings, with an adjusted earnings per share (EPS) of $8.21, surpassing estimates from both Jefferies and Stephens. This positive performance was coupled with a reported Q3 revenue of $9.2 billion, marking an 11% year-over-year increase. Analysts from Jefferies and Stephens have responded to these robust earnings by raising their price targets for Lithia Motors to $400 and $405, respectively, while maintaining positive ratings on the company's shares.
Lithia Motors has also achieved substantial cost savings, reaching $200 million in annualized savings and reducing its adjusted SG&A to 66% of gross profit. In addition, the company has 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 Lithia Motors' commitment to a balanced capital allocation strategy and suggest a positive sentiment towards the company's ability to adapt in the evolving automotive market. With analysts from Jefferies and Stephens indicating confidence in Lithia Motors' continued growth, the company appears well-positioned for future advancements.
InvestingPro Insights
Lithia Motors Inc. (NYSE:LAD) has been demonstrating strong market performance, as evidenced by recent InvestingPro data. The company's stock has shown impressive returns, with a 31.13% price total return over the past three months and a substantial 53.03% return over the last six months. This upward trend aligns with the recent insider sale by CFO Tina Miller, potentially indicating a favorable market valuation.
Despite the strong stock performance, InvestingPro Tips highlight that Lithia Motors operates with a significant debt burden and suffers from weak gross profit margins. The company's gross profit margin stands at 15.72% for the last twelve months as of Q3 2024, which may be a point of concern for some investors.
On a positive note, Lithia Motors has maintained dividend payments for 15 consecutive years and has raised its dividend for 11 consecutive years, showcasing a commitment to shareholder returns. The company's current dividend yield is 0.54%, with a 6.0% dividend growth rate over the last twelve months.
For investors seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for Lithia Motors, providing deeper insights into the company's financial health and market position.
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