Lithia & Driveway Increases Share Repurchase Authorization

Rhea-AI Summary

Lithia & Driveway (NYSE: LAD) announced a $350 million increase to its share repurchase authorization, bringing the total available funds for future repurchases to approximately $660 million.

CEO Bryan DeBoer highlighted this move as a reflection of confidence in the company's long-term growth and profitability.

So far in 2024, LAD has spent over $156 million to repurchase nearly 609,500 shares, representing 2.2% of outstanding shares at an average price of $257 per share.

Positive

• Increased share repurchase authorization by $350 million, totalling $660 million available for repurchases.
• Repurchased nearly 609,500 shares, 2.2% of outstanding shares, indicating strong financial position.
• Weighted average repurchase price of $257 per share suggests strategic buybacks.

Negative

• Significant capital allocated to share repurchases may limit funds for other investments.
• Repurchasing shares at $257 each could be seen as expensive if market conditions change unfavorably.

MEDFORD, Ore., June 4, 2024 /PRNewswire/ -- Lithia & Driveway (NYSE: LAD) announced today a $350 million increase to its share repurchase authorization by its Board of Directors, bringing total funds available for future repurchases to approximately $660 million. 

"Increasing our share repurchase authorization reflects confidence in our long-term growth and profitability," said Bryan DeBoer, Lithia & Driveway President and CEO. "With all of the foundational pieces of our unique strategy in place, we are turning all efforts to delivering operational excellence and deploying of capital to drive the greatest shareholder return."

To date this year, LAD has invested over $156 million to repurchase nearly 609,500 shares, 2.2% of outstanding shares, at a weighted average price of $257 per share.

About Lithia & Driveway (LAD)
Lithia & Driveway (NYSE: LAD) is one of the largest global automotive retailers providing a wide array of products and services throughout the vehicle ownership lifecycle. Simple, convenient, and transparent experiences are offered through our comprehensive network of physical locations, e-commerce platforms, captive finance solutions and other synergistic adjacencies. We deliver consistent, profitable growth in a massive and unconsolidated industry. Our highly diversified and competitively differentiated design provides us the flexibility and scale to pursue our vision to modernize personal transportation solutions wherever, whenever and however consumers desire.

Sites
www.lithia.com
www.investors.lithiadriveway.com
www.lithiacareers.com
www.driveway.com
www.greencars.com
www.drivewayfinancecorp.com

Lithia & Driveway on Facebook
https://www.facebook.com/LithiaMotors
https://www.facebook.com/DrivewayHQ

Lithia & Driveway on Twitter
https://twitter.com/lithiamotors
https://twitter.com/DrivewayHQ
https://twitter.com/GreenCarsHQ

 

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SOURCE Lithia Motors, Inc.

FAQ

What is the total amount authorized for Lithia & Driveway's share repurchases?

The total amount authorized for Lithia & Driveway's share repurchases is approximately $660 million.

How much has Lithia & Driveway spent on share repurchases in 2024?

Lithia & Driveway has spent over $156 million on share repurchases in 2024.

How many shares has Lithia & Driveway repurchased in 2024?

Lithia & Driveway has repurchased nearly 609,500 shares in 2024.

What is the significance of the increased share repurchase authorization for Lithia & Driveway (LAD)?

The increased share repurchase authorization signifies confidence in Lithia & Driveway's long-term growth and profitability.

What was the average price per share for Lithia & Driveway's repurchases in 2024?

The average price per share for Lithia & Driveway's repurchases in 2024 was $257.