Lithia Motors (NYSE:LAD) Stock Gets Price Target Trim from Citigroup

Lithia Motors (NYSE:LAD) had its target price lowered by Citigroup from $409.00 to $386.00 in a report released on Friday,Benzinga reports. Citigroup currently has a buy rating on the stock.

Several other equities research analysts also recently issued reports on LAD. Jefferies Financial Group reiterated a “buy” rating and issued a $490.00 price objective on shares of Lithia Motors in a report on Thursday, July 30th. Wells Fargo & Company raised their target price on Lithia Motors from $306.00 to $395.00 and gave the company an “equal weight” rating in a report on Thursday, July 30th. Benchmark lifted their target price on Lithia Motors from $400.00 to $475.00 and gave the company a “buy” rating in a research report on Thursday, July 30th. UBS Group dropped their target price on Lithia Motors from $335.00 to $305.00 and set a “neutral” rating for the company in a research report on Thursday. Finally, Bank of America boosted their price target on shares of Lithia Motors from $350.00 to $417.00 and gave the stock a “buy” rating in a research note on Thursday, July 9th. Six research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $393.80.

Lithia Motors Stock Down 0.3%

Shares of NYSE LAD opened at $294.55 on Friday. The company has a quick ratio of 0.21, a current ratio of 1.00 and a debt-to-equity ratio of 1.44. The business’s 50 day moving average is $330.21 and its two-hundred day moving average is $315.66. Lithia Motors has a 52-week low of $239.78 and a 52-week high of $439.49. The firm has a market cap of $6.47 billion, a price-to-earnings ratio of 8.47, a PEG ratio of 0.68 and a beta of 1.27.

Lithia Motors (NYSE:LAD) last released its quarterly earnings results on Wednesday, October 21st. The company reported $10.34 EPS for the quarter, topping the consensus estimate of $9.70 by $0.64. Lithia Motors had a return on equity of 12.05% and a net margin of 2.06%. The business had revenue of $9.95 billion during the quarter, compared to analyst estimates of $9.75 billion. During the same period last year, the business posted $9.50 earnings per share. The company’s quarterly revenue was up 2.8% on a year-over-year basis. Research analysts predict that Lithia Motors will post 35.78 EPS for the current year.

Lithia Motors Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, November 20th. Shareholders of record on Friday, November 6th will be given a $0.75 dividend. The ex-dividend date of this dividend is Friday, November 6th. This represents a $3.00 annualized dividend and a yield of 1.0%. This is a boost from Lithia Motors’s previous quarterly dividend of $0.70. Lithia Motors’s dividend payout ratio is 8.06%.

Insider Activity at Lithia Motors

In other Lithia Motors news, Director Stacy Congdon sold 75 shares of the business’s stock in a transaction on Friday, September 11th. The shares were 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 in the company, valued at $852,679. The trade was a 3.16% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.08% of the stock is currently owned by company insiders.

Institutional Trading of Lithia Motors

Several hedge funds have recently modified their holdings of the stock. Addison Advisors LLC acquired a new position in Lithia Motors during the 2nd quarter worth $30,000. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in Lithia Motors during the 2nd quarter worth about $30,000. Versant Capital Management Inc increased its holdings in Lithia Motors by 1,311.1% during the 2nd quarter. Versant Capital Management Inc now owns 127 shares of the company’s stock worth $37,000 after purchasing an additional 118 shares during the period. Bessemer Group Inc. raised its position in Lithia Motors by 68.0% in the 1st quarter. Bessemer Group Inc. now owns 173 shares of the company’s stock valued at $43,000 after purchasing an additional 70 shares in the last quarter. Finally, GAMMA Investing LLC raised its position in Lithia Motors by 32.1% in the 2nd quarter. GAMMA Investing LLC now owns 173 shares of the company’s stock valued at $50,000 after purchasing an additional 42 shares in the last quarter.

Lithia Motors News Roundup

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

• Positive Sentiment: Lithia Motors reported quarterly earnings of $10.34 per share, exceeding the $9.70 consensus estimate, while revenue of $9.95 billion also surpassed expectations. Revenue increased 2.8% year over year, supporting the initial positive reaction to the results. Lithia Motors Shares Gap Up on Strong Earnings
• Positive Sentiment: Citigroup reduced its price target to $386 from $409 but retained a “buy” rating, implying substantial potential upside from recent trading levels. Citigroup Lithia Motors recommendations
• Positive Sentiment: Barclays lowered its target to $345 from $375 but maintained an “overweight” rating, indicating that the firm still views the valuation as attractive despite more cautious assumptions. Barclays Lithia Motors recommendations
• Positive Sentiment: The company raised its quarterly dividend 7.1% to $0.75 per share, or $3.00 annualized, signaling continued confidence in cash returns to shareholders.
• Neutral Sentiment: The consensus price target was cut approximately 11% to $413.53, suggesting analysts remain bullish overall but are moderating expectations following the earnings release. Lithia Motors consensus price target cut
• Negative Sentiment: Several firms lowered their targets: UBS to $305 and JPMorgan to $315, both with “neutral” ratings. These revisions reflect concern that earnings quality and forward growth may not justify previous valuations. UBS Lithia Motors recommendations
• Negative Sentiment: A recent analysis downgraded LAD to “hold,” citing rising economic risks, elevated auto-loan delinquencies, pressure on new-vehicle profitability, and approximately $15.77 billion in net debt. Rising interest costs were also highlighted as a drag on results. Despite a Strong Showing, a Downgrade Is in Store for Lithia Motors

Lithia Motors Company Profile

Lithia Motors, Inc is an automotive retailer headquartered in Medford, Oregon. Operating under the Lithia & Driveway name, the company sells new and used vehicles through a network of franchised dealerships and digital retail channels. Its dealerships represent a broad range of domestic, Asian and European automotive brands.

In addition to vehicle sales, Lithia provides related services including vehicle financing and insurance products, parts and maintenance, collision repair, and other after-sales support.