MEDFORD, OR—Gary M. Glandon, Chief People Officer at Lithia Motors Inc . (NYSE:LAD), recently sold 242 shares of the company's common stock. The shares were sold on November 21 at an average price of $382.86 each, totaling $92,652. Following this transaction, Glandon retains ownership of 1,729 shares, which includes 75 shares acquired through the company's employee stock purchase plan. Lithia Motors is a leading provider in the retail-auto dealers and gasoline stations sector.
In other recent news, Lithia Motors has made headlines with its outstanding third-quarter performance. The company reported an impressive adjusted earnings per share (EPS) of $8.21, surpassing both the estimated $8.17 and the consensus of $7.59. This was complemented by a Q3 revenue of $9.2 billion, marking an 11% year-over-year increase. Analyst Bret Jordan from Jefferies and Stephens, a financial services firm, both raised their price targets for Lithia Motors to $400 and $405 respectively, maintaining positive ratings on the company's shares.
Furthermore, 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 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. These recent developments demonstrate Lithia Motors' commitment to a balanced capital allocation strategy and optimism about its future growth and profitability.
InvestingPro Insights
Lithia Motors Inc. (NYSE:LAD) has been demonstrating strong financial performance, as evidenced by recent InvestingPro data. The company's market capitalization stands at $10.38 billion, reflecting its significant presence in the Specialty Retail industry. Lithia's P/E ratio of 13.25 suggests that the stock may be reasonably valued compared to its earnings.
The company's revenue growth is particularly noteworthy, with a 14.43% increase over the last twelve months as of Q3 2024, reaching $34.69 billion. This robust growth aligns with the company's position as a leading provider in the retail-auto dealers sector.
InvestingPro Tips highlight that Lithia Motors has raised its dividend for 11 consecutive years, indicating a commitment to shareholder returns. This is particularly relevant given the recent insider sale by the Chief People Officer, as it suggests the company maintains a strong financial position despite executive stock transactions.
Additionally, the stock's performance has been impressive, with a 25.78% price total return over the past month and a 35.02% return over the last three months. This aligns with another InvestingPro Tip noting that the stock is trading near its 52-week high, which may be of interest to investors considering the recent insider sale.
For those seeking a more comprehensive analysis, InvestingPro offers 13 additional tips on Lithia Motors, providing deeper insights into the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.