Lithia Motors (NYSE:LAD – Free Report) had its price objective trimmed by JPMorgan Chase & Co. from $320.00 to $315.00 in a research report report published on Thursday morning,Benzinga reports. The firm currently has a neutral rating on the stock.
Other analysts also recently issued reports about the stock. Morgan Stanley dropped their price objective on shares of Lithia Motors from $358.00 to $310.00 and set an “equal weight” rating for the company in a report on Monday, October 5th. Benchmark increased their target price on Lithia Motors from $400.00 to $475.00 and gave the company a “buy” rating in a research note on Thursday, July 30th. Weiss Ratings cut Lithia Motors from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, October 14th. Citigroup dropped their price target on Lithia Motors from $455.00 to $409.00 and set a “buy” rating for the company in a research note on Tuesday, September 22nd. Finally, Wall Street Zen raised Lithia Motors from a “sell” rating to a “hold” rating in a research note on Saturday, August 1st. Six analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $393.80.
View Our Latest Stock Report on LAD
Lithia Motors Stock Performance
NYSE:LAD opened at $294.55 on Thursday. The stock has a market cap of $6.47 billion, a P/E ratio of 8.47, a PEG ratio of 0.68 and a beta of 1.27. The company has a quick ratio of 0.21, a current ratio of 1.00 and a debt-to-equity ratio of 1.44. The business’s 50-day moving average price is $330.21 and its two-hundred day moving average price is $315.25. Lithia Motors has a twelve month low of $239.78 and a twelve month high of $439.49.
Lithia Motors (NYSE:LAD – Get Free Report) last issued its quarterly earnings data on Wednesday, October 21st. The company reported $10.34 EPS for the quarter, topping the consensus estimate of $9.70 by $0.64. The company had revenue of $9.95 billion during the quarter, compared to analyst estimates of $9.75 billion. Lithia Motors had a return on equity of 12.05% and a net margin of 2.06%. Lithia Motors’s revenue was up 2.8% on a year-over-year basis. During the same quarter in the previous year, the firm earned $9.50 earnings per share. As a group, equities analysts predict that Lithia Motors will post 35.78 EPS for the current fiscal year.
Lithia Motors Increases Dividend
The firm also recently declared a quarterly dividend, which will be paid on Friday, November 20th. Shareholders of record on Friday, November 6th will be paid a $0.75 dividend. This is a boost from Lithia Motors’s previous quarterly dividend of $0.70. This represents a $3.00 annualized dividend and a yield of 1.0%. The ex-dividend date of this dividend is Friday, November 6th. Lithia Motors’s payout ratio is presently 8.06%.
Insider Transactions at Lithia Motors
In other news, Director Stacy Congdon sold 75 shares of the firm’s stock in a transaction dated Friday, September 11th. The stock was sold at an average price of $370.73, for a total transaction of $27,804.75. Following the transaction, the director directly owned 2,300 shares of the company’s stock, valued at approximately $852,679. This trade represents a 3.16% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.08% of the stock is currently owned by insiders.
Institutional Investors Weigh In On Lithia Motors
A number of hedge funds and other institutional investors have recently modified their holdings of the stock. BlackRock Inc. purchased a new stake in Lithia Motors during the 2nd quarter valued at about $696,482,000. Dimensional Fund Advisors LP increased its stake in Lithia Motors by 3.2% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,389,870 shares of the company’s stock worth $347,074,000 after purchasing an additional 43,087 shares during the period. Madison Asset Management LLC purchased a new position in Lithia Motors in the 2nd quarter worth approximately $66,988,000. Bank of New York Mellon Corp bought a new stake in Lithia Motors in the second quarter valued at approximately $63,015,000. Finally, The Manufacturers Life Insurance Company purchased a new stake in shares of Lithia Motors during the second quarter valued at approximately $42,718,000.
More Lithia Motors News
Here are the key news stories impacting Lithia Motors this week:
- Positive Sentiment: Lithia Motors reported quarterly earnings of $10.34 per share, exceeding the $9.70 consensus estimate, while revenue of $9.95 billion also surpassed expectations. Revenue increased 2.8% year over year, supporting the initial positive reaction to the results. Lithia Motors Shares Gap Up on Strong Earnings
- Positive Sentiment: Citigroup reduced its price target to $386 from $409 but retained a “buy” rating, implying substantial potential upside from recent trading levels. Citigroup Lithia Motors recommendations
- Positive Sentiment: Barclays lowered its target to $345 from $375 but maintained an “overweight” rating, indicating that the firm still views the valuation as attractive despite more cautious assumptions. Barclays Lithia Motors recommendations
- Positive Sentiment: The company raised its quarterly dividend 7.1% to $0.75 per share, or $3.00 annualized, signaling continued confidence in cash returns to shareholders.
- Neutral Sentiment: The consensus price target was cut approximately 11% to $413.53, suggesting analysts remain bullish overall but are moderating expectations following the earnings release. Lithia Motors consensus price target cut
- Negative Sentiment: Several firms lowered their targets: UBS to $305 and JPMorgan to $315, both with “neutral” ratings. These revisions reflect concern that earnings quality and forward growth may not justify previous valuations. UBS Lithia Motors recommendations
- Negative Sentiment: A recent analysis downgraded LAD to “hold,” citing rising economic risks, elevated auto-loan delinquencies, pressure on new-vehicle profitability, and approximately $15.77 billion in net debt. Rising interest costs were also highlighted as a drag on results. Despite a Strong Showing, a Downgrade Is in Store for Lithia Motors
About Lithia Motors
Lithia Motors, Inc is an automotive retailer headquartered in Medford, Oregon. Operating under the Lithia & Driveway name, the company sells new and used vehicles through a network of franchised dealerships and digital retail channels. Its dealerships represent a broad range of domestic, Asian and European automotive brands.
In addition to vehicle sales, Lithia provides related services including vehicle financing and insurance products, parts and maintenance, collision repair, and other after-sales support.
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