Lithia Motors (NYSE:LAD) Stock Price Expected to Rise, Wells Fargo & Company Analyst Says

Lithia Motors (NYSE:LAD) had its price objective upped by analysts at Wells Fargo & Company from $306.00 to $395.00 in a report issued on Thursday,Benzinga reports. The firm currently has an “equal weight” rating on the stock. Wells Fargo & Company‘s price objective would suggest a potential upside of 2.14% from the company’s current price.

Other analysts have also issued reports about the stock. Citigroup boosted their target price on shares of Lithia Motors from $326.00 to $365.00 and gave the company a “buy” rating in a research report on Friday, May 1st. UBS Group downgraded shares of Lithia Motors from a “buy” rating to a “neutral” rating and increased their price target for the stock from $370.00 to $440.00 in a research report on Thursday. Barclays dropped their price target on shares of Lithia Motors from $370.00 to $360.00 and set an “overweight” rating on the stock in a research note on Wednesday, July 15th. Zacks Research raised shares of Lithia Motors from a “strong sell” rating to a “hold” rating in a research report on Thursday, April 23rd. Finally, Weiss Ratings upgraded Lithia Motors from a “hold (c-)” rating to a “hold (c)” rating in a research note on Tuesday, July 21st. Seven research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $414.70.

Lithia Motors Trading Down 4.5%

Shares of NYSE:LAD opened at $386.74 on Thursday. The stock has a market capitalization of $8.82 billion, a price-to-earnings ratio of 12.83, a PEG ratio of 0.89 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. The stock’s 50-day simple moving average is $313.76 and its two-hundred day simple moving average is $296.03. Lithia Motors has a 52-week low of $239.78 and a 52-week high of $439.49.

Lithia Motors (NYSE:LAD) last released its quarterly earnings results 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. 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 during the quarter, compared to the consensus estimate of $9.64 billion. During the same period in the previous year, the company posted $10.24 EPS. The business’s quarterly revenue was up 2.2% compared to the same quarter last year. Analysts expect that Lithia Motors will post 34.48 EPS for the current year.

Lithia Motors announced that its board has initiated a stock buyback program on Tuesday, May 26th that permits the company to repurchase $500.00 million in shares. This repurchase authorization permits the company to purchase up to 7.9% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company’s management believes its stock is undervalued.

Insider Buying and Selling

In other 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 value 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. This represents a 28.10% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Shauna Mcintyre sold 165 shares of the firm’s stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $305.64, for a total transaction of $50,430.60. Following the sale, the director owned 1,681 shares in the company, valued at $513,780.84. The trade was a 8.94% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 782 shares of company stock worth $229,572. 1.08% of the stock is owned by company insiders.

Institutional Investors Weigh In On Lithia Motors

A number of institutional investors have recently bought and sold shares of LAD. Clearstead Advisors LLC lifted its position in shares of Lithia Motors by 111.4% in the fourth quarter. Clearstead Advisors LLC now owns 93 shares of the company’s stock valued at $31,000 after acquiring an additional 49 shares in the last quarter. V Square Quantitative Management LLC bought a new position in shares of Lithia Motors in the fourth quarter worth about $34,000. Quarry LP grew its position in shares of Lithia Motors by 101.9% during the fourth quarter. Quarry LP now owns 109 shares of the company’s stock worth $36,000 after purchasing an additional 55 shares in the last quarter. Los Angeles Capital Management LLC purchased a new stake in shares of Lithia Motors during the fourth quarter worth about $38,000. Finally, eCIO Inc. bought a new stake in Lithia Motors during the 4th quarter valued at approximately $42,000.

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

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.