Bryan DeBoer, Chief Executive Officer of Lithia Motors Inc (NYSE:LAD), recently sold a significant portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, DeBoer sold a total of 15,846 shares of Lithia Motors common stock on November 11, 2024. The shares were sold at prices ranging from $385.7253 to $387.0 per share, amounting to a total sale value of approximately $6.1 million.
Following these transactions, DeBoer holds 220,236 shares directly. Additionally, there are 3,625 shares indirectly held by his son. Lithia Motors, headquartered in Medford, Oregon, is a prominent player in the auto retailing industry.
In other recent news, Lithia Motors has witnessed strong earnings results, with Q3 revenue reported at $9.2 billion, marking an 11% year-over-year increase. The company's adjusted earnings per share (EPS) stood at $8.21, surpassing estimates set by both Jefferies and Stephens. In response to these robust earnings, both financial firms raised their price targets for Lithia Motors, with Jefferies setting it at $400 and Stephens at $405, while maintaining their respective positive ratings.
In addition to its strong financial performance, Lithia Motors has 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.
Despite challenges in the subprime segment, the company's prime portfolio showed resilience with slight increases in delinquencies but well-managed provisions. Analysts at both Jefferies and Stephens have expressed positive sentiments towards the company's ability to capitalize on the evolving automotive market conditions, citing factors such as potential drops in interest rates and historically high levels of new GPU figures. These are among the recent developments that reflect Lithia Motors' commitment to a balanced capital allocation strategy and optimism about its future growth and profitability.
InvestingPro Insights
While Bryan DeBoer's recent sale of Lithia Motors Inc (NYSE:LAD) shares might raise eyebrows, it's essential to consider the broader context of the company's performance and market position. According to InvestingPro data, Lithia Motors boasts a market capitalization of $10.0 billion and has demonstrated strong financial performance with a revenue of $34.69 billion in the last twelve months as of Q3 2024.
Notably, Lithia Motors has shown impressive growth, with revenue increasing by 14.43% over the same period. This growth trajectory aligns with the company's status as a prominent player in the Specialty Retail industry, as highlighted by one of the InvestingPro Tips.
Investors should also take note of Lithia's dividend history. An InvestingPro Tip reveals that the company has raised its dividend for 11 consecutive years, demonstrating a commitment to shareholder returns. This is particularly significant given the company's current dividend yield of 0.56%.
Despite DeBoer's stock sale, Lithia Motors' stock has shown robust performance, with a 46.46% total return over the past year. The stock is currently trading near its 52-week high, with its price at 96.85% of the peak. This strong performance is further supported by another InvestingPro Tip indicating that 7 analysts have revised their earnings upwards for the upcoming period, suggesting positive expectations for the company's future performance.
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 market position beyond the recent insider transaction.
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