Chris Holzshu, the Chief Operating Officer of Lithia Motors Inc . (NYSE:LAD), recently sold a significant portion of the company's stock. According to a recent SEC filing, Holzshu sold a total of 8,520 shares on October 24, 2024. The sales were executed at prices ranging from $332.29 to $339.20 per share, resulting in a total transaction value of approximately $2.86 million.
Following these transactions, Holzshu retains ownership of 32,054 shares of Lithia Motors. The sales were carried out in multiple transactions, with the weighted average prices provided for each batch, as noted in the filing's footnotes.
In other recent news, Lithia Motors has been the focus of recent analyst activity. Jefferies analyst Bret Jordan increased the price target for the company to $400, maintaining a "Buy" rating, following Lithia Motors' third-quarter performance. The company reported an adjusted earnings per share (EPS) of $8.21, surpassing both the estimated $8.17 and the consensus of $7.59. Similarly, Stephens raised its price target for Lithia Motors to $405, also maintaining an Overweight rating.
Lithia Motors reported a record third-quarter revenue of $9.2 billion, marking an 11% year-over-year increase. The company's adjusted earnings per share (EPS) stood at $8.21, surpassing the estimates set by Stephens, which projected an adjusted EPS of $7.82.
In addition to strong earnings, Lithia Motors achieved significant cost savings, reaching $200 million in annualized savings and reducing its adjusted SG&A to 66% of gross profit. The company has also expanded 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 in the company, demonstrating its commitment to a balanced capital allocation strategy and optimism about its future growth and profitability.
InvestingPro Insights
As we analyze Chris Holzshu's recent stock sale, it's important to consider Lithia Motors' current financial position and market performance. According to InvestingPro data, Lithia Motors boasts a market capitalization of $8.88 billion, with a price-to-earnings ratio of 11.34, suggesting the stock may be reasonably valued compared to its earnings.
The company's revenue growth remains strong, with a 14.43% increase over the last twelve months as of Q3 2024, reaching $34.69 billion. This robust top-line growth aligns with the company's position as a prominent player in the Specialty Retail industry, as noted in one of the InvestingPro Tips.
Investors should note that Lithia Motors has demonstrated a commitment to shareholder returns. An InvestingPro Tip highlights that the company has raised its dividend for 11 consecutive years, which may be attractive to income-focused investors. However, the current dividend yield stands at a modest 0.63%.
The stock's recent performance has been particularly strong, with a 30.31% price total return over the past three months. This upward momentum has brought the stock price to 97.44% of its 52-week high, indicating significant investor optimism. However, another InvestingPro Tip cautions that the Relative Strength Index (RSI) suggests the stock may be in overbought territory, which could be relevant to Holzshu's decision to sell shares at this time.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights, with 14 more tips available for Lithia Motors. These tips could provide valuable context for understanding the company's financial health and future prospects in light of the recent insider sale.
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