Lithia Motors (NYSE:LAD) Upgraded by Wall Street Zen to Hold Rating

Wall Street Zen upgraded shares of Lithia Motors (NYSE:LAD) from a sell rating to a hold rating in a report released on Saturday morning.

LAD has been the topic of several other reports. Citigroup increased their price objective on Lithia Motors from $326.00 to $365.00 and gave the company a “buy” rating in a research report on Friday, May 1st. Benchmark boosted their target price on Lithia Motors from $400.00 to $475.00 and gave the stock a “buy” rating in a research report on Thursday. Wells Fargo & Company upped their target price on Lithia Motors from $306.00 to $395.00 and gave the stock an “equal weight” rating in a research note on Thursday. UBS Group cut shares of Lithia Motors from a “buy” rating to a “neutral” rating and increased their price target for the company from $370.00 to $440.00 in a research report on Thursday. Finally, Zacks Research raised shares of Lithia Motors from a “strong sell” rating to a “hold” rating in a research note on Thursday, April 23rd. Seven equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $414.70.

Lithia Motors Stock Down 4.5%

Shares of NYSE:LAD opened at $386.74 on Friday. The firm 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 company has a debt-to-equity ratio of 1.46, a quick ratio of 0.24 and a current ratio of 1.00. Lithia Motors has a 52-week low of $239.78 and a 52-week high of $439.49. The firm has a fifty day moving average of $313.76 and a 200 day moving average of $296.03.

Lithia Motors (NYSE:LAD) last released its quarterly earnings results on Wednesday, July 29th. The company reported $10.03 earnings per share for the quarter, beating analysts’ consensus estimates of $8.73 by $1.30. Lithia Motors had a return on equity of 12.16% and a net margin of 1.88%.The business had revenue of $9.79 billion for the quarter, compared to the consensus estimate of $9.64 billion. During the same quarter last year, the business posted $10.24 earnings per share. The company’s revenue for the quarter was up 2.2% on a year-over-year basis. As a group, research analysts anticipate that Lithia Motors will post 34.9 EPS for the current fiscal year.

Lithia Motors announced that its board 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 shares through open market purchases. Shares buyback plans are usually an indication that the company’s board believes its stock is undervalued.

Lithia Motors Increases Dividend

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

Insider Activity at Lithia Motors

In other Lithia Motors news, Director Richard J. Bailey, Jr. sold 297 shares of the stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $280.57, for a total transaction of $83,329.29. Following the completion of the sale, the director owned 760 shares of the company’s stock, valued at $213,233.20. This represents a 28.10% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Shauna Mcintyre sold 245 shares of the firm’s stock in a transaction on Monday, May 11th. The stock was sold at an average price of $294.64, for a total transaction of $72,186.80. Following the completion of the sale, the director directly owned 1,846 shares in the company, valued at approximately $543,905.44. This trade represents a 11.72% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 782 shares of company stock worth $229,572 in the last 90 days. Company insiders own 1.08% of the company’s stock.

Hedge Funds Weigh In On Lithia Motors

Several hedge funds and other institutional investors have recently modified their holdings of LAD. Norges Bank purchased a new stake in shares of Lithia Motors in the 4th quarter worth about $125,214,000. River Road Asset Management LLC increased its position in shares of Lithia Motors by 33.6% during the fourth quarter. River Road Asset Management LLC now owns 742,677 shares of the company’s stock valued at $246,814,000 after buying an additional 186,628 shares during the period. Life Cycle Investment Partners Ltd purchased a new position in shares of Lithia Motors during the fourth quarter valued at about $58,409,000. Corient Private Wealth LLC raised its stake in Lithia Motors by 8,474.0% in the fourth quarter. Corient Private Wealth LLC now owns 107,690 shares of the company’s stock worth $35,789,000 after buying an additional 106,434 shares in the last quarter. Finally, Marshall Wace LLP raised its stake in Lithia Motors by 183.6% in the fourth quarter. Marshall Wace LLP now owns 162,937 shares of the company’s stock worth $54,149,000 after buying an additional 105,478 shares in the last quarter.

Lithia Motors News Roundup

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

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.