Lithia Motors Inc (LAD): Hedge Funds Are Bullish and Insiders Are Bearish, What Should You Do?

Page 1 of 2

Lithia Motors Inc (NYSE:LAD) was in 18 hedge funds’ portfolio at the end of the first quarter of 2013. LAD investors should pay attention to an increase in enthusiasm from smart money lately. There were 16 hedge funds in our database with LAD positions at the end of the previous quarter.

In today’s marketplace, there are many metrics market participants can use to watch publicly traded companies. Some of the most under-the-radar are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite investment managers can outperform the S&P 500 by a healthy margin (see just how much).

VINIK ASSET MANAGEMENTJust as important, optimistic insider trading activity is another way to break down the marketplace. Just as you’d expect, there are lots of reasons for an insider to get rid of shares of his or her company, but only one, very clear reason why they would buy. Various academic studies have demonstrated the valuable potential of this strategy if shareholders know what to do (learn more here).

With all of this in mind, it’s important to take a glance at the latest action regarding Lithia Motors Inc (NYSE:LAD).

What have hedge funds been doing with Lithia Motors Inc (NYSE:LAD)?

At Q1′s end, a total of 18 of the hedge funds we track were long in this stock, a change of 13% from the first quarter. With the smart money’s sentiment swirling, there exists a select group of noteworthy hedge fund managers who were increasing their stakes considerably.

According to our comprehensive database, Jeffrey Vinik’s Vinik Asset Management had the most valuable position in Lithia Motors Inc (NYSE:LAD), worth close to $21.3 million, accounting for 0.6% of its total 13F portfolio. The second largest stake is held by Phill Gross and Robert Atchinson of Adage Capital Management, with a $16.6 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Other hedgies that hold long positions include John Murphy’s Alydar Capital, Chuck Royce’s Royce & Associates and Andrew Sandler’s Sandler Capital Management.

As industrywide interest jumped, key money managers were leading the bulls’ herd. Alydar Capital, managed by John Murphy, created the largest position in Lithia Motors Inc (NYSE:LAD). Alydar Capital had 12.2 million invested in the company at the end of the quarter. Van Schreiber’s Bennett Lawrence Management also initiated a $1.3 million position during the quarter. The other funds with new positions in the stock are D. E. Shaw’s D E Shaw, David Costen Haley’s HBK Investments, and Matthew Hulsizer’s PEAK6 Capital Management.

Insider trading activity in Lithia Motors Inc (NYSE:LAD)

Insider buying is at its handiest when the company in question has experienced transactions within the past six months. Over the latest half-year time period, Lithia Motors Inc (NYSE:LAD) has seen zero unique insiders buying, and 7 insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to Lithia Motors Inc (NYSE:LAD). These stocks are Rush Enterprises, Inc. (NASDAQ:RUSHB), KAR Auction Services Inc (NYSE:KAR), Sonic Automotive Inc (NYSE:SAH), Group 1 Automotive, Inc. (NYSE:GPI), and Asbury Automotive Group, Inc. (NYSE:ABG). All of these stocks are in the auto dealerships industry and their market caps resemble LAD’s market cap.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 44 percentage points in 21 months Learn how!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!