Lithia Motors (NYSE:LAD) Coverage Initiated at Barclays

Equities researchers at Barclays assumed coverage on shares of Lithia Motors (NYSE:LAD) in a report released on Wednesday, Marketbeat Ratings reports. The firm set an “overweight” rating and a $410.00 price target on the stock. Barclays‘s price objective would indicate a potential upside of 36.99% from the stock’s previous close.

A number of other brokerages have also weighed in on LAD. Jefferies Financial Group started coverage on Lithia Motors in a research report on Thursday, September 4th. They issued a “buy” rating and a $400.00 price objective on the stock. Wells Fargo & Company upped their target price on Lithia Motors from $317.00 to $327.00 and gave the company an “equal weight” rating in a report on Wednesday, October 15th. Bank of America cut their price target on shares of Lithia Motors from $500.00 to $385.00 and set a “buy” rating on the stock in a report on Wednesday, September 10th. Citigroup boosted their price objective on shares of Lithia Motors from $385.00 to $399.00 and gave the company a “buy” rating in a research report on Tuesday, October 28th. Finally, Benchmark restated a “buy” rating on shares of Lithia Motors in a report on Thursday, October 23rd. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, Lithia Motors currently has an average rating of “Moderate Buy” and an average target price of $383.10.

Lithia Motors Price Performance

Shares of Lithia Motors stock opened at $299.29 on Wednesday. The company’s fifty day simple moving average is $317.25 and its two-hundred day simple moving average is $318.26. Lithia Motors has a 12-month low of $262.10 and a 12-month high of $405.67. The firm has a market cap of $7.26 billion, a PE ratio of 8.67, a price-to-earnings-growth ratio of 0.67 and a beta of 1.29. The company has a quick ratio of 0.30, a current ratio of 1.21 and a debt-to-equity ratio of 1.35.

Lithia Motors (NYSE:LAD) last posted its earnings results on Wednesday, October 22nd. The company reported $9.50 earnings per share for the quarter, topping analysts’ consensus estimates of $8.53 by $0.97. The company had revenue of $9.68 billion during the quarter, compared to analyst estimates of $9.38 billion. Lithia Motors had a net margin of 2.39% and a return on equity of 13.42%. Lithia Motors’s revenue for the quarter was up 4.9% on a year-over-year basis. During the same period in the prior year, the business posted $8.21 earnings per share. As a group, equities analysts expect that Lithia Motors will post 34.45 EPS for the current year.

Lithia Motors declared that its Board of Directors has approved a stock repurchase plan on Tuesday, August 26th that permits the company to buyback $750.00 million in shares. This buyback authorization permits the company to reacquire up to 9% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s management believes its stock is undervalued.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of LAD. Stephens Inc. AR grew its holdings in Lithia Motors by 127.4% in the first quarter. Stephens Inc. AR now owns 1,567 shares of the company’s stock worth $460,000 after purchasing an additional 878 shares during the period. CWM LLC grew its stake in shares of Lithia Motors by 30.1% in the 1st quarter. CWM LLC now owns 212 shares of the company’s stock worth $62,000 after buying an additional 49 shares during the last quarter. Securian Asset Management Inc. grew its stake in shares of Lithia Motors by 5.1% in the 1st quarter. Securian Asset Management Inc. now owns 2,079 shares of the company’s stock worth $610,000 after buying an additional 100 shares during the last quarter. Edgestream Partners L.P. bought a new position in Lithia Motors during the 1st quarter valued at approximately $381,000. Finally, Tectonic Advisors LLC raised its stake in Lithia Motors by 11.3% during the first quarter. Tectonic Advisors LLC now owns 1,096 shares of the company’s stock valued at $322,000 after buying an additional 111 shares during the last quarter.

About Lithia Motors

Lithia Motors, Inc operates as an automotive retailer worldwide. It operates in two segments, Vehicle Operations and Financing Operations. The company’s Vehicle Operations segment sells new and used vehicles; provides parts, repair, and maintenance services; vehicle finance; and insurance products. Its Financing Operations segment provides financing to customers buying and leasing retail vehicles.