In a recent transaction, Louis Miramontes, a director at Lithia Motors Inc . (NYSE:LAD), sold 200 shares of the company's common stock. The shares were sold at an average price of $373.62 each, amounting to a total transaction value of $74,724. Following this sale, Miramontes retains ownership of 5,257 shares in the automotive retail company. The transaction was disclosed in a filing with the Securities and Exchange Commission dated November 13, 2024.
In other recent news, Lithia Motors has reported strong earnings and revenue results, with a third-quarter revenue of $9.2 billion, marking an 11% year-over-year increase. The company's adjusted earnings per share (EPS) were reported at $8.21, surpassing estimates by both Jefferies and Stephens. Following these results, Jefferies raised its price target for Lithia Motors to $400, maintaining a "Buy" rating, while Stephens increased its price target to $405, keeping an Overweight rating.
In mergers and acquisitions, Lithia Motors has expanded its portfolio with the addition of three stores from Duval Motor Company, expected to contribute nearly $6 billion in annual revenues. This expansion is part of the company's ongoing commitment to strategic growth.
In other company news, Lithia Motors achieved significant cost savings, reaching $200 million in annualized savings and reducing its adjusted SG&A to 66% of gross profit. These recent developments reflect the company's focus on operational efficiency and strategic acquisitions.
Analyst Bret Jordan from Jefferies and an unnamed analyst from Stephens suggest that Lithia Motors is well-positioned to benefit from a supportive demand environment anticipated in the future, despite challenges in the subprime segment. However, the company's prime portfolio has shown resilience with slight increases in delinquencies but well-managed provisions.
InvestingPro Insights
While Louis Miramontes' recent sale of 200 shares might raise eyebrows, it's important to contextualize this transaction within Lithia Motors' broader financial landscape. According to InvestingPro data, Lithia Motors boasts a market capitalization of $9.92 billion, reflecting its significant presence in the Specialty Retail industry. The company's stock has shown remarkable strength, with a 22.09% price return over the past month and an impressive 37.25% return over the last six months, indicating robust investor confidence.
Lithia's financial performance aligns with this positive market sentiment. The company reported revenue of $34.69 billion in the last twelve months as of Q3 2023, with a healthy revenue growth of 14.43% over the same period. This growth trajectory is further supported by an InvestingPro Tip noting that 7 analysts have revised their earnings upwards for the upcoming period, suggesting optimism about Lithia's future performance.
Moreover, Lithia Motors has demonstrated a commitment to shareholder returns. An InvestingPro Tip highlights that the company has raised its dividend for 11 consecutive years, a testament to its financial stability and shareholder-friendly policies. This is particularly noteworthy given that Lithia operates with a significant debt burden, as another InvestingPro Tip points out.
For investors seeking a more comprehensive analysis, InvestingPro offers 14 additional tips on Lithia Motors, providing deeper insights into the company's financial health and market position.
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