Global Investment Firm Wesbanco Bank Reduces Stake in Lithia Motors, Inc.
Date: July 5, 2023
In a recent filing with the Securities and Exchange Commission (SEC), Wesbanco Bank Inc. revealed a significant reduction in its stake in Lithia Motors, Inc. (NYSE:LAD). This move has garnered attention from various research firms, prompting debates about the future prospects of the leading automotive retailer. With contrasting ratings from analysts and notable fluctuations in share prices, this article delves into the implications of Wesbanco Bank’s decision and discusses the current state of affairs at Lithia Motors.
Wesbanco Bank’s Decreased Stake:
According to the SEC filing made by Wesbanco Bank Inc., during the first quarter of this year, the investment firm reduced its stake in Lithia Motors by a substantial 59.9%. Having sold 6,415 shares during this period, Wesbanco Bank currently holds approximately 4,298 shares worth $984,000 as of their most recent filing. This move has ignited interest within the investment community as investors seek to understand the reasoning behind Wesbanco’s decision.
Analyst Coverage and Ratings:
Various research firms have recently weighed in on Lithia Motors’ prospects. StockNews.com initiated coverage on LAD shares on May 18th and provided a “hold” rating for the company. Additionally, Guggenheim decreased their price target for Lithia Motors’ shares from $332.00 to $320.00 while maintaining a “buy” rating on April 20th. Currently, one equity research analyst rates LAD as a sell while four rate it as hold and another four maintain buy ratings. Bloomberg data reveals that the stock has a consensus rating of “Hold” with an average price target of $300.56.
Stock Performance:
On Wednesday, July 5th, shares of Lithia Motors opened at $304.64. The company’s strong financial position is evident with a debt-to-equity ratio of 1.07, a current ratio of 1.30, and a quick ratio of 0.33. Over the past year, Lithia Motors’ shares have witnessed significant fluctuations, with a low of $180.00 and a high of $310.80. Furthermore, the company has demonstrated stability with a 50-day simple moving average of $246.85 and a two-hundred day simple moving average of $238.49.
Company Overview:
Lithia Motors, Inc., boasting a market capitalization of $8.39 billion, is one of the leading automotive retailers in the United States. By operating under various brands, including Lithia Auto Stores and DCH Auto Group, the company offers new and used vehicles as well as ancillary services such as financing options, insurance products, and vehicle maintenance.
Conclusion:
Wesbanco Bank Inc.’s reduction in its stake in Lithia Motors has generated considerable interest among investors and industry experts alike. As analysts express differing opinions about the stock’s future prospects, it remains to be seen how this cautious approach from Wesbanco Bank will impact Lithia Motors’ performance in the coming quarters. With an average price target that suggests moderate growth potential ahead, it is essential for stakeholders to closely monitor any further developments within this highly dynamic sector.
Disclaimer: This article serves as an analysis based on publicly available information and should not be considered personalized investment advice. Investors are encouraged to conduct thorough research or consult with a professional financial advisor before making any investment decisions based on this article.
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Changes in Hedge Fund Positions and Insider Selling Impact Lithia Motors’ Stock Performance: An Analysis of Recent Developments
Lithia Motors (NYSE:LAD) has been experiencing changes in its share positions by several hedge funds. Raymond James Financial Services Advisors Inc. raised its holdings in Lithia Motors by 2.8% during the first quarter, now owning 3,600 shares worth $1,080,000 after acquiring an additional 99 shares in the last quarter.
Cambridge Investment Research Advisors Inc. also lifted its stake in Lithia Motors by 41.1% during the same period, now owning 3,116 shares worth $935,000 after purchasing an additional 908 shares. Bank of Montreal Can increased its stake by 4% and now owns 2,790 shares worth $902,000 after buying an extra 107 shares. Great West Life Assurance Co. Can increased its stake by 8.4%, owning 16,847 shares now valued at $5,190,000 after acquiring an additional 1,310 shares.
The trend continues as Blair William & Co IL lifted its stake in Lithia Motors by a significant margin of 34.1%. The firm now owns 955 shares of the company’s stock valued at $287,000 after purchasing an additional 243 shares during the last quarter.
This news comes alongside insider George N. Hines selling off some of his Lithia Motors stock. Hines sold a total of 1,490 shares on Monday, May 8th for approximately $327,129.50 or an average price per share of $219.55. Following this sale, Hines retained ownership of around 5,142 company stocks with a valuation of $1,12892610.
Another insider sale was made by Director Shauna McIntyre who sold off 200 shares on Tuesday, June 6th for around $49,646 or an average price per share of $248.23 In this instance McIntyre still held on to about 2051 shares with a valuation of $509,119.73.
Overall, insiders have sold a total of 1,890 shares in the last quarter amounting to approximately $421,726.
Research firms have also provided their insights on Lithia Motors. StockNews.com recently initiated coverage on the company with a “hold” rating while Guggenheim lowered its price target for Lithia Motors from $332 to $320 but maintained a “buy” rating.
Lithia Motors released its quarterly earnings data on Wednesday, April 19th, which revealed an EPS of $8.44 for the quarter, missing the consensus estimate of $8.79 by ($0.35). Despite this shortfall, analysts still predict that Lithia Motors will post an EPS of 33.97 for the current fiscal year based on revenues of $6.97 billion during the quarter compared to analysts’ expectation of $7.28 billion.
On May 26th, Lithia Motors announced an increased quarterly dividend payment compared to previous quarters. Shareholders of record as at May 12th received a dividend payment of $0.50 per share—an increase from the previous dividend payout ratio (DPR) of $0.42 per share—resulting in an annualized dividend rate of $2.00 and a dividend yield of 0.66%.
In essence, while certain hedge funds are making adjustments to their positions in Lithia Motors and insiders are selling off some stocks, research firms continue to provide mixed opinions about the stock’s performance and ratings vary from buy to sell or hold depending on the analyst firm’s view on future prospects.
Investors will be closely watching these developments and assessing whether they should follow suit or make calculated moves based on their understanding of the market dynamics impacting Lithia Motors’ stock performance in order to safeguard and optimize their portfolios moving forward.