Insider Unloading: Shauna McIntyre Sells $99K Worth Of Lithia Motors Shares

Disclosed on May 1, Shauna McIntyre, Director at Lithia Motors LAD, executed a substantial insider sell as per the latest SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Thursday showed that McIntyre sold 337 shares of Lithia Motors. The total transaction amounted to $99,731.

The latest update on Friday morning shows Lithia Motors shares down by 0.0%, trading at $293.77.

Delving into Lithia Motors's Background

Lithia Motors is a retailer of new and used vehicles and related services. The company offers over 50 brands of vehicles at nearly 500 stores globally across the US, Canada, and UK. The company has expanded largely through the acquisition of dealerships in smaller regional markets but now seeks to grow in any part of the US and we expect more deals over time in the US and, at times, abroad. Annual revenue in 2024 was $36.2 billion and we see over $50 billion possible in a few years. The US was 78% of 2024 revenue and the UK second at 19%, due to the 2024 Pendragon acquisition. In 2024, new vehicle sales were about 49% of total revenue. Lithia was founded in 1946, went public in 1996, and is the largest US auto dealer. It is based in Medford, Oregon.

Lithia Motors: Financial Performance Dissected

Positive Revenue Trend: Examining Lithia Motors's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 7.2% as of 31 March, 2025, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Holistic Profitability Examination:

• Gross Margin: The company shows a low gross margin of 15.37%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Lithia Motors's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 7.96.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 2.06.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: The P/E ratio of 9.27 is lower than the industry average, implying a discounted valuation for Lithia Motors's stock.

• Price to Sales (P/S) Ratio: With a P/S ratio of 0.21 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio of 9.06 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

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Delving Into the Significance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

The Insider's Guide to Important Transaction Codes

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Lithia Motors's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.