Lithia Motors director Sidney DeBoer sells over $2.9 million in company stock

Lithia Motors Inc . (NYSE:LAD ) director Sidney B. DeBoer has sold a significant portion of his stock in the company, according to a recent filing with the Securities and Exchange Commission. On September 13, DeBoer sold a total of 10,777 shares of Lithia Motors common stock in two separate transactions. The sales were executed at prices ranging between $275.0 and $277.0 per share, resulting in a total transaction value of approximately $2,973,675.


The first transaction involved the sale of 5,777 shares at $275.0 each, while the second saw a batch of 5,000 shares sold at $277.0 per share. Following these transactions, DeBoer's remaining ownership in the company stands at 35,352 shares of common stock.


Lithia Motors, headquartered in Medford, Oregon, operates as a retailer in the automotive industry, offering vehicle and gasoline sales through its various outlets. The company's shares are publicly traded on the New York Stock Exchange under the ticker symbol LAD.


Investors often monitor insider transactions such as these for insights into management's perspective on the company's valuation and future performance. However, it is important to note that insider sales can occur for various reasons and may not necessarily reflect a negative outlook.


The recent trades by DeBoer represent a notable movement within the company's insider activity and are likely to be of interest to shareholders and potential investors as they assess Lithia Motors' current market position and future prospects.



In other recent news, Lithia Motors has been making notable strides in its financial performance and expansion strategy. The company recently reported a significant increase in its second-quarter adjusted diluted earnings per share, which rose to $7.87, marking a 30% sequential improvement. Furthermore, its quarterly revenue reached a record high of $9.2 billion, up 14% year-over-year.


Stephens initiated coverage on Lithia Motors with an Overweight rating, based on an enterprise value to earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) multiple of 7.8 times the firm's 2025 EBITDA estimate. The company's aggressive growth has been marked by its expansion into captive finance, which now represents over 10% of its total U.S. vehicle sales, and a history of consistent dealership acquisitions.


Lithia Motors' acquisition strategy has been complemented by its share repurchase program. The company has bought back around 21% of its shares since 2019, including about 3% in the last twelve months. Analysts forecast that Lithia Motors will continue to reduce its share count by approximately 4% in 2024 and 2% in each of the following two years.


The company is also expected to acquire $1 billion in annual revenue in both 2025 and 2026, aligning with its long-term goal of acquiring $2 billion to $4 billion in annual revenue. These recent developments underscore Lithia Motors' commitment to its growth strategy and financial performance.
InvestingPro Insights


As investors digest the news of insider sales at Lithia Motors Inc. (NYSE:LAD), current market metrics and performance insights can offer a broader perspective on the company's financial health and outlook. According to the latest data from InvestingPro, Lithia Motors boasts a market capitalization of approximately $7.5 billion, reflecting its substantial presence in the automotive retail market. The company's Price-to-Earnings (P/E) ratio stands at 9.01, suggesting that the stock may be reasonably valued in relation to its earnings when compared to the broader market averages.


Looking at the company's profitability, an InvestingPro Tip highlights that Lithia Motors has been profitable over the last twelve months, with a Gross Profit Margin of 15.97%. This aligns with the company's status as a prominent player in the Specialty Retail industry, as noted in another InvestingPro Tip. Despite concerns about weak gross profit margins, the company's revenue growth remains robust, with a 15.04% increase over the last twelve months as of Q2 2024, indicating a positive trajectory in its core business operations.


For those considering long-term investment potential, Lithia Motors has demonstrated a strong return over the last five years, and it has raised its dividend for 10 consecutive years, showcasing a commitment to returning value to shareholders. As of the latest data, the company offers a dividend yield of 0.76%, with a recent dividend growth rate of 6.0%.


Investors interested in a deeper dive into Lithia Motors can find additional insights and metrics on InvestingPro, where there are more InvestingPro Tips available to guide investment decisions. With a fair value estimate of $355 by analysts and an InvestingPro fair value of $228.64, potential investors have valuable benchmarks to consider when evaluating the company's stock price, which closed previously at $279.51.

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Source: Investing.com