Lithia Motors, Inc. (NYSE:LAD) Receives Average Recommendation of “Moderate Buy” from Brokerages

Lithia Motors, Inc. (NYSE:LAD) has been assigned a consensus rating of “Moderate Buy” from the eleven analysts that are currently covering the company, Marketbeat reports. Three equities research analysts have rated the stock with a hold rating and eight have issued a buy rating on the company. The average 12 month target price among brokerages that have issued ratings on the stock in the last year is $390.40.

A number of research analysts recently weighed in on LAD shares. Benchmark reaffirmed a “buy” rating on shares of Lithia Motors in a report on Thursday, October 23rd. Citigroup lifted their price target on Lithia Motors from $385.00 to $399.00 and gave the stock a “buy” rating in a research note on Tuesday, October 28th. Barclays decreased their price objective on shares of Lithia Motors from $410.00 to $390.00 and set an “overweight” rating on the stock in a research report on Wednesday, January 21st. Wells Fargo & Company cut their target price on shares of Lithia Motors from $358.00 to $355.00 and set an “equal weight” rating for the company in a research report on Thursday. Finally, Evercore increased their price target on shares of Lithia Motors from $440.00 to $500.00 and gave the company an “outperform” rating in a research report on Monday, November 24th.

Lithia Motors Trading Down 5.9%

NYSE:LAD traded down $18.92 on Thursday, reaching $301.49. 152,037 shares of the company’s stock were exchanged, compared to its average volume of 268,677. The business has a fifty day moving average of $334.42 and a 200-day moving average of $320.94. 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 has a 52-week low of $262.10 and a 52-week high of $389.61. The firm has a market capitalization of $7.31 billion, a price-to-earnings ratio of 8.75 and a beta of 1.20.

Lithia Motors (NYSE:LAD) last announced its quarterly earnings data on Wednesday, February 11th. The company reported $6.74 earnings per share for the quarter, missing analysts’ consensus estimates of $8.17 by ($1.43). Lithia Motors had a net margin of 2.39% and a return on equity of 13.42%. The firm had revenue of $9.20 billion during the quarter, compared to analyst estimates of $9.19 billion. During the same quarter in the previous year, the business posted $7.79 earnings per share. Lithia Motors’s revenue for the quarter was up .3% compared to the same quarter last year. As a group, analysts expect that Lithia Motors will post 34.45 earnings per share for the current year.

Lithia Motors Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, March 20th. Shareholders of record on Friday, March 6th will be paid a dividend of $0.55 per share. The ex-dividend date is Friday, March 6th. This represents a $2.20 annualized dividend and a yield of 0.7%. Lithia Motors’s dividend payout ratio is presently 6.37%.

Insider Buying and Selling

In related news, Director Congdon Stacy Loretz sold 75 shares of the stock in a transaction that occurred on Friday, December 12th. The shares were sold at an average price of $360.00, for a total transaction of $27,000.00. Following the completion of the sale, the director directly owned 1,810 shares of the company’s stock, valued at $651,600. This represents a 3.98% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 0.87% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Abrams Capital Management L.P. raised its position in shares of Lithia Motors by 1.9% in the 3rd quarter. Abrams Capital Management L.P. now owns 2,490,534 shares of the company’s stock valued at $787,009,000 after buying an additional 45,856 shares in the last quarter. Dimensional Fund Advisors LP lifted its holdings in shares of Lithia Motors by 1.1% in the 3rd quarter. Dimensional Fund Advisors LP now owns 1,340,670 shares of the company’s stock worth $423,662,000 after purchasing an additional 14,015 shares in the last quarter. Canada Pension Plan Investment Board lifted its stake in Lithia Motors by 5.9% during the 2nd quarter. Canada Pension Plan Investment Board now owns 612,377 shares of the company’s stock valued at $206,873,000 after acquiring an additional 33,966 shares in the last quarter. Geode Capital Management LLC raised its stake in shares of Lithia Motors by 2.5% during the 2nd quarter. Geode Capital Management LLC now owns 479,537 shares of the company’s stock worth $162,022,000 after purchasing an additional 11,859 shares during the period. Finally, Norges Bank bought a new stake in shares of Lithia Motors in the second quarter valued at $148,540,000.

Key Headlines Impacting Lithia Motors

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

• Positive Sentiment: Record full-year revenue, large buybacks and acquisitions support long-term scale and capital return: Lithia reported record FY revenue of $37.63B, repurchased about $947M of shares in 2025 (?11.4% of shares outstanding) and completed strategic acquisitions totaling ~$2.4B of annual revenue. PR Newswire: Q4 & FY Press Release
• Positive Sentiment: Used-car and aftersales momentum — better margins in high-margin areas: Same-store used revenue +6.1%, used retail units +4.7%, and aftersales revenue +10.9% with gross profit up 9.8% on a same-store basis, which helps offset weakness in new-vehicle sales. PR Newswire: Q4 & FY Press Release
• Positive Sentiment: Dividend announcement: Lithia declared a $0.55 quarterly dividend (ex-div March 6), adding a modest income component to total shareholder return (annualized yield ~0.7%).
• Neutral Sentiment: Investor materials & transcripts available for deeper read — earnings call transcript, slide deck and multiple write-ups provide detail for modelling and guidance checks. Slide Deck / Press Release
• Neutral Sentiment: Partnerships: TraXtion was named a preferred partner for Lithia & Driveway service lanes — incremental OEM/vendor relationships may modestly improve service efficiency over time. BusinessWire: TraXtion Partner
• Negative Sentiment: Quarterly EPS materially missed expectations: Lithia reported Q4 EPS of $6.74 vs. consensus near $8.10–$8.17; revenue was essentially flat y/y at $9.20B (roughly in line with estimates) but EPS declined versus the prior year ($7.79). The EPS miss is the key driver of today’s downward stock move. Zacks: Q4 Earnings Miss
• Negative Sentiment: Analyst stance turned cautious: Wells Fargo trimmed its price target slightly to $355 and moved to an “equal weight” rating, signaling less near-term upside from current levels and adding pressure on sentiment. Benzinga: Wells Fargo PT Change

Lithia Motors Company Profile

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.