Lithia Motors Inc . (NYSE:LAD) Chief Executive Officer Bryan DeBoer has recently sold a portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, DeBoer sold 3,313 shares of Lithia Motors common stock on November 14, 2024, at a price of $380 per share. The total value of the transaction amounted to approximately $1.26 million.
Following this sale, DeBoer holds 192,814 shares directly. Additionally, 3,625 shares are held indirectly by his son. This transaction is part of the regular reporting of insider activity, offering investors insight into the stock holdings and transactions of company executives.
In other recent news, Lithia Motors has been the subject of attention from financial analysts. Jefferies analyst Bret Jordan raised the price target for Lithia Motors to $400, maintaining a "Buy" rating. This adjustment followed Lithia Motors' impressive third-quarter performance, reporting an adjusted earnings per share (EPS) of $8.21, which exceeded estimates. Similarly, Stephens increased its price target for Lithia Motors to $405 after the company reported strong Q3 earnings.
On the earnings front, Lithia Motors reported a record third-quarter revenue of $9.2 billion, reflecting an 11% year-over-year increase. The company's adjusted EPS stood at $8.21, surpassing the estimates set by Stephens. Lithia Motors also achieved significant cost savings, reaching $200 million in annualized savings and reducing its adjusted SG&A to 66% of gross profit.
In terms of expansion, Lithia Motors has added to its portfolio with new acquisitions, including three stores from Duval Motor Company, expected to contribute nearly $6 billion in annual revenues. These are among the recent developments for Lithia Motors, painting a picture of a company committed to growth and profitability in the evolving automotive market.
InvestingPro Insights
Lithia Motors Inc. (NYSE:LAD) has been experiencing strong market performance, which aligns with CEO Bryan DeBoer's recent stock sale. According to InvestingPro data, the company's stock is trading near its 52-week high, with a robust 22.09% return over the last month and an impressive 34.24% return over the past three months. This upward trend may have influenced DeBoer's decision to sell a portion of his holdings.
Despite the CEO's sale, InvestingPro Tips highlight that Lithia Motors has raised its dividend for 11 consecutive years and has maintained dividend payments for 15 consecutive years. This consistent dividend policy suggests a commitment to shareholder returns, which may be reassuring to investors in light of the insider sale.
The company's financial health appears solid, with a market capitalization of $9.92 billion and a price-to-earnings ratio of 12.7, indicating a potentially attractive valuation. Moreover, Lithia Motors has demonstrated strong revenue growth, with a 14.43% increase in the last twelve months as of Q3 2024, reaching $34.69 billion.
For investors seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for Lithia Motors, providing deeper insights into the company's performance and outlook.
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