Lithia Motors Inc. , also known as Lithia & Driveway, said Tuesday it was increasing its stock repurchase program by $750 million. The lifts the total funds available for repurchases to $885 million, which represents about 10.3% of the auto retailer’s market capitalization of $8.59 billion as of Monday’s close. The stock was still inactive in the premarket. “As discussed in our last earnings call, strong earnings have generated greater than expected free cash flows, which allows us to return capital to our shareholders through share repurchases, while preserving the liquidity necessary to achieve our 2025 Plan,” said Chief Executive Bryan DeBoer. “Our capital allocation remains focused on acquisitions and internal investments, such as Driveway and Driveway Finance, to generate the highest long-term return for shareholders.” The stock has slumped 13.4% over the past three months while the S&P 500 has gained 2.8%.
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