Morgan Stanley Issues Pessimistic Forecast for Lithia Motors (NYSE:LAD) Stock Price

Lithia Motors (NYSE:LAD) had its price objective cut by research analysts at Morgan Stanley from $358.00 to $310.00 in a research note issued on Monday, Benzinga reports. The firm currently has an “equal weight” rating on the stock. Morgan Stanley’s price target would indicate a potential upside of 6.03% from the stock’s current price.

A number of other research analysts also recently commented on LAD. UBS Group downgraded Lithia Motors from a “buy” rating to a “neutral” rating and upped their price objective for the stock from $370.00 to $440.00 in a research note on Thursday, July 30th. Bank of America raised their target price on Lithia Motors from $350.00 to $417.00 and gave the company a “buy” rating in a research note on Thursday, July 9th. JPMorgan Chase & Co. boosted their price target on shares of Lithia Motors from $325.00 to $340.00 and gave the company a “neutral” rating in a report on Tuesday, August 4th. Citigroup lowered their price target on shares of Lithia Motors from $455.00 to $409.00 and set a “buy” rating for the company in a research report on Tuesday, September 22nd. Finally, Wall Street Zen raised shares of Lithia Motors from a “sell” rating to a “hold” rating in a report on Saturday, August 1st. Seven analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $413.10.

Lithia Motors Stock Performance

Shares of NYSE LAD opened at $292.38 on Monday. The company has a quick ratio of 0.21, a current ratio of 1.00 and a debt-to-equity ratio of 1.46. The firm’s 50-day moving average price is $354.59 and its two-hundred day moving average price is $312.17. Lithia Motors has a 52-week low of $239.78 and a 52-week high of $439.49. The stock has a market capitalization of $6.43 billion, a P/E ratio of 9.70, a P/E/G ratio of 0.64 and a beta of 1.27.

Lithia Motors (NYSE:LAD) last posted its earnings results on Wednesday, July 29th. The company reported $10.03 EPS for the quarter, beating the consensus estimate of $8.73 by $1.30. The company had revenue of $9.79 billion during the quarter, compared to analyst estimates of $9.64 billion. Lithia Motors had a return on equity of 12.16% and a net margin of 1.88%.The business’s revenue was up 2.2% compared to the same quarter last year. During the same period in the prior year, the company earned $10.24 earnings per share. As a group, sell-side analysts forecast that Lithia Motors will post 36 earnings per share for the current year.

Insider Transactions at Lithia Motors

In other news, Director Stacy Congdon sold 75 shares of the stock in a transaction on Friday, September 11th. The stock was sold at an average price of $370.73, for a total value of $27,804.75. Following the completion of the transaction, the director owned 2,300 shares of the company’s stock, valued at approximately $852,679. This represents a 3.16% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 1.08% of the company’s stock.

Institutional Investors Weigh In On Lithia Motors

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Versant Capital Management Inc grew its position in Lithia Motors by 46.5% in the 3rd quarter. Versant Capital Management Inc now owns 186 shares of the company’s stock valued at $54,000 after buying an additional 59 shares in the last quarter. QRG Capital Management Inc. raised its position in shares of Lithia Motors by 5.3% during the 2nd quarter. QRG Capital Management Inc. now owns 2,165 shares of the company’s stock worth $629,000 after buying an additional 109 shares in the last quarter. Sequoia Financial Advisors LLC bought a new stake in shares of Lithia Motors during the 2nd quarter worth about $241,000. Tidal Investments LLC lifted its stake in shares of Lithia Motors by 10.9% in the 2nd quarter. Tidal Investments LLC now owns 3,694 shares of the company’s stock worth $1,073,000 after acquiring an additional 363 shares during the period. Finally, WINTON GROUP Ltd acquired a new stake in shares of Lithia Motors in the 2nd quarter worth approximately $4,811,000.

Key Lithia Motors News

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

• Positive Sentiment: Lithia & Driveway announced the acquisition of Rockwall Hyundai, expanding its dealership portfolio and potentially supporting revenue and earnings growth. Lithia & Driveway announces Rockwall Hyundai deal
• Positive Sentiment: Barclays lowered its price target from $415 to $375 but maintained an overweight rating, implying substantial upside from the current trading level. Barclays Cuts Lithia Motors Price Target
• Neutral Sentiment: Lithia & Driveway promoted Katie Macaddino to chief people officer. The leadership change may support organizational execution, though it is unlikely to materially affect near-term financial results. Lithia & Driveway Names Katie Macaddino Chief People Officer
• Neutral Sentiment: A Zacks analysis is examining whether LAD is undervalued using earnings estimates, estimate revisions, and value, growth, and momentum measures; the item does not provide a definitive rating change. Is Lithia Motors Stock Undervalued Right Now?
• Negative Sentiment: JPMorgan cut its price target from $340 to $320 and kept a neutral rating, reflecting limited conviction in near-term upside.
• Negative Sentiment: Morgan Stanley reduced its target from $358 to $310 and maintained an equal-weight rating, adding to the series of downward revisions. Morgan Stanley Issues Forecast for Lithia Motors

Lithia Motors Company Profile

Lithia Motors, Inc, doing business as Lithia & Driveway (NYSE:LAD), is an automotive retailer that operates a network of franchised dealerships and other vehicle-sales businesses. The company sells new and used vehicles from a broad range of automobile manufacturers, including domestic, import and luxury brands.

In addition to vehicle sales, Lithia & Driveway provides automotive financing and insurance products, maintenance and repair services, replacement parts, collision services and other related offerings.