Lithia Motors, Inc. (NYSE:LAD) Receives $380.33 Consensus Target Price from Analysts

Shares of Lithia Motors, Inc. (NYSE:LAD) have been assigned an average recommendation of “Moderate Buy” from the twelve brokerages that are presently covering the firm, MarketBeat.com reports. Five equities research analysts have rated the stock with a hold recommendation and seven have assigned a buy recommendation to the company. The average 1 year target price among brokers that have covered the stock in the last year is $414.70.

Several brokerages have weighed in on LAD. JPMorgan Chase & Co. lifted their price target on shares of Lithia Motors from $320.00 to $325.00 and gave the company a “neutral” rating in a report on Thursday, May 7th. Benchmark increased their price target on Lithia Motors from $400.00 to $475.00 and gave the company a “buy” rating in a research note on Thursday. Barclays lowered their price objective on shares of Lithia Motors from $370.00 to $360.00 and set an “overweight” rating for the company in a research report on Wednesday, July 15th. Wells Fargo & Company lifted their target price on Lithia Motors from $306.00 to $395.00 and gave the stock an “equal weight” rating in a report on Thursday. Finally, Weiss Ratings raised shares of Lithia Motors from a “hold (c-)” rating to a “hold (c)” rating in a research report on Tuesday, July 21st.

More Lithia Motors News

Here are the key news stories impacting Lithia Motors this week:

• Positive Sentiment: Lithia reported quarterly EPS of $10.03, exceeding the $8.73 analyst consensus, while revenue of $9.79 billion also topped estimates. Results benefited from stronger used-vehicle margins, aftersales growth and record financing income despite mixed sales trends. LAD Q2 Earnings Beat on Used Margins and Financing Growth
• Positive Sentiment: Benchmark raised its LAD price target from $400 to $475 and maintained a “buy” rating, implying substantial upside from the recent trading level. Lithia Motors Price Target Raised to $475 at Benchmark
• Positive Sentiment: Wells Fargo increased its price target from $306 to $395, reflecting improved expectations, although it retained an “equal weight” rating. Lithia Motors Given New Price Target at Wells Fargo
• Positive Sentiment: The company raised its quarterly dividend to $0.70 per share from $0.57, a 22.8% increase, with the next ex-dividend date scheduled for August 7. Lithia Motors Dividend Increase
• Neutral Sentiment: Zacks highlighted LAD as a strong momentum stock, while brokerage consensus remains “Moderate Buy,” indicating generally favorable—but not unanimous—analyst sentiment. Why Lithia Motors Is a Strong Momentum Stock
• Negative Sentiment: One post-earnings analysis suggested LAD could be roughly 15% above fair value, raising concerns that the earnings-driven rally may have outpaced the company’s underlying valuation. Lithia Motors Could Be Above Fair Value After Earnings Beat

Lithia Motors Price Performance

Shares of NYSE:LAD opened at $386.74 on Thursday. The company has a quick ratio of 0.24, a current ratio of 1.00 and a debt-to-equity ratio of 1.46. Lithia Motors has a twelve month low of $239.78 and a twelve month high of $439.49. The stock has a market capitalization of $8.82 billion, a PE ratio of 12.83, a price-to-earnings-growth ratio of 0.85 and a beta of 1.26. The firm’s 50 day moving average price is $313.76 and its 200-day moving average price is $296.03.

Lithia Motors (NYSE:LAD) last issued its quarterly earnings data on Wednesday, July 29th. The company reported $10.03 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $8.73 by $1.30. The firm had revenue of $9.79 billion during the quarter, compared to the consensus estimate of $9.64 billion. Lithia Motors had a net margin of 1.88% and a return on equity of 12.16%. The company’s revenue for the quarter was up 2.2% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $10.24 EPS. Equities research analysts expect that Lithia Motors will post 34.9 EPS for the current year.

Lithia Motors Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 21st. Investors of record on Friday, August 7th will be issued a dividend of $0.70 per share. This represents a $2.80 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date is Friday, August 7th. This is a positive change from Lithia Motors’s previous quarterly dividend of $0.57. Lithia Motors’s dividend payout ratio (DPR) is 7.56%.

Lithia Motors announced that its Board of Directors has authorized a share repurchase plan on Tuesday, May 26th that authorizes the company to buyback $500.00 million in shares. This buyback authorization authorizes the company to reacquire up to 7.9% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s board of directors believes its stock is undervalued.

Insider Buying and Selling

In related news, Director Shauna Mcintyre sold 165 shares of the company’s stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $305.64, for a total value of $50,430.60. Following the completion of the sale, the director directly owned 1,681 shares of the company’s stock, valued at $513,780.84. This represents a 8.94% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Richard J. Bailey, Jr. sold 297 shares of the company’s stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $280.57, for a total transaction of $83,329.29. Following the completion of the sale, the director directly owned 760 shares of the company’s stock, valued at $213,233.20. The trade was a 28.10% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 782 shares of company stock valued at $229,572 in the last quarter. 1.08% of the stock is owned by company insiders.

Institutional Investors Weigh In On Lithia Motors

A number of institutional investors have recently added to or reduced their stakes in the stock. Clearstead Advisors LLC boosted its holdings in shares of Lithia Motors by 111.4% in the 4th quarter. Clearstead Advisors LLC now owns 93 shares of the company’s stock valued at $31,000 after buying an additional 49 shares in the last quarter. V Square Quantitative Management LLC purchased a new stake in shares of Lithia Motors during the fourth quarter valued at $34,000. Quarry LP increased its holdings in shares of Lithia Motors by 101.9% in the fourth quarter. Quarry LP now owns 109 shares of the company’s stock valued at $36,000 after purchasing an additional 55 shares during the period. Versant Capital Management Inc increased its holdings in Lithia Motors by 1,311.1% in the 2nd quarter. Versant Capital Management Inc now owns 127 shares of the company’s stock worth $37,000 after buying an additional 118 shares during the period. Finally, Los Angeles Capital Management LLC acquired a new stake in shares of Lithia Motors in the fourth quarter worth $38,000.

About Lithia Motors

Lithia Motors, Inc is an American automotive retailer headquartered in Medford, Oregon. Founded in 1946 as a small auto body and glass shop, the company has grown through organic expansion and strategic acquisitions to become one of the largest automotive retail networks in North America. Lithia operates dealerships across the United States and Canada, offering a broad portfolio of new and pre-owned vehicles from more than 40 different manufacturers.

The company’s core business activities include vehicle sales, financing, insurance, parts and service.