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

Lithia Motors (NYSE:LAD) had its target price cut by equities researchers at UBS Group from $335.00 to $305.00 in a research report issued on Thursday, Benzinga reports. The brokerage presently has a “neutral” rating on the stock. UBS Group‘s price target suggests a potential upside of 4.77% from the stock’s current price.

A number of other analysts also recently weighed in on the company. Bank of America lifted their price target on Lithia Motors from $350.00 to $417.00 and gave the company a “buy” rating in a research note on Thursday, July 9th. Weiss Ratings downgraded shares of Lithia Motors from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, October 14th. Morgan Stanley reduced their target price on shares of Lithia Motors from $358.00 to $310.00 and set an “equal weight” rating on the stock in a report on Monday, October 5th. Wall Street Zen raised shares of Lithia Motors from a “sell” rating to a “hold” rating in a research note on Saturday, August 1st. Finally, JPMorgan Chase & Co. lowered their price target on shares of Lithia Motors from $320.00 to $315.00 and set a “neutral” rating for the company in a report on Thursday. Six equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat.com, Lithia Motors has an average rating of “Moderate Buy” and an average price target of $399.10.

Lithia Motors Stock Up 8.2%

Shares of NYSE:LAD traded up $21.99 during trading on Thursday, hitting $291.12. 879,344 shares of the company were exchanged, compared to its average volume of 316,320. The stock has a market capitalization of $6.40 billion, a P/E ratio of 9.66, a PEG ratio of 0.69 and a beta of 1.27. The company has a debt-to-equity ratio of 1.46, a current ratio of 1.00 and a quick ratio of 0.21. Lithia Motors has a 12-month low of $239.78 and a 12-month high of $439.49. The firm’s 50 day moving average price is $333.62 and its 200-day moving average price is $315.12.

Lithia Motors (NYSE:LAD) last released its quarterly earnings results on Wednesday, October 21st. The company reported $10.34 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $9.70 by $0.64. The firm had revenue of $9.95 billion for the quarter, compared to the consensus estimate of $9.75 billion. Lithia Motors had a return on equity of 12.16% and a net margin of 1.88%. The firm’s quarterly revenue was up 2.8% compared to the same quarter last year. During the same quarter last year, the business posted $9.50 EPS. On average, research analysts predict that Lithia Motors will post 35.60 earnings per share for the current fiscal year.

Insider Buying and Selling at Lithia Motors

In other Lithia Motors news, Director Stacy Congdon sold 75 shares of the company’s stock in a transaction that occurred 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 in the company, valued at $852,679. This represents a 3.16% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.08% of the stock is owned by insiders.

Institutional Investors Weigh In On Lithia Motors

Hedge funds have recently bought and sold shares of the business. Root Financial Partners LLC bought a new stake in shares of Lithia Motors in the third quarter worth $76,000. Crossmark Global Holdings Inc. raised its holdings in Lithia Motors by 117.9% in the third quarter. Crossmark Global Holdings Inc. now owns 2,162 shares of the company’s stock valued at $631,000 after acquiring an additional 1,170 shares in the last quarter. Rare Wolf Capital LLC raised its holdings in Lithia Motors by 7.9% in the third quarter. Rare Wolf Capital LLC now owns 7,776 shares of the company’s stock valued at $2,269,000 after acquiring an additional 572 shares in the last quarter. Abel Hall LLC boosted its stake in Lithia Motors by 6.1% during the 3rd quarter. Abel Hall LLC now owns 777 shares of the company’s stock valued at $227,000 after acquiring an additional 45 shares during the last quarter. Finally, IFP Advisors Inc boosted its stake in Lithia Motors by 3.4% during the 3rd quarter. IFP Advisors Inc now owns 2,225 shares of the company’s stock valued at $649,000 after acquiring an additional 74 shares during the last quarter.

Key Headlines Impacting Lithia Motors

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

• Positive Sentiment: Q3 earnings and revenue beat estimates. Adjusted EPS was $10.34 versus the $9.70 consensus, while revenue reached approximately $9.95 billion compared with expectations of $9.75 billion. Revenue increased 2.8% year over year, and adjusted EPS rose 9%. Lithia Motors Tops Q3 Earnings and Revenue Estimates
• Positive Sentiment: Operating metrics showed improved profitability. Used-vehicle gross profit per unit increased 11% year over year, while aftersales gross margin expanded to 59.5%. Driveway Finance income climbed nearly 70% to $32.3 million, supported by record originations. Lithia Three Key Takeaways
• Positive Sentiment: Shareholder returns were strengthened. Lithia repurchased $85 million of stock during the quarter and raised its quarterly dividend 7.1%, from $0.70 to $0.75 per share. The new annualized dividend is $3.00 per share. Lithia and Driveway Third Quarter Results
• Neutral Sentiment: JPMorgan reduced its price target to $315 from $320 and maintained a Neutral rating. The revised target still implies potential upside, but the change signals limited near-term conviction. JPMorgan Analyst Action
• Negative Sentiment: Higher interest costs are raising concerns. Despite the earnings beat, increased borrowing costs are pressuring results and could weigh on future profitability, particularly given Lithia’s debt-heavy balance sheet. Lithia Motors Stock Sinks as Q3 Results Expose Rising Interest Costs

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.