Lithia Motors (NYSE:LAD) Price Target Raised to $455.00

Lithia Motors (NYSE:LAD) had its price objective increased by equities researchers at Citigroup from $365.00 to $455.00 in a note issued to investors on Monday,Benzinga reports. The brokerage currently has a “buy” rating on the stock. Citigroup’s price target would suggest a potential upside of 19.40% from the company’s current price.

A number of other analysts also recently issued reports on LAD. Benchmark lifted their price target on Lithia Motors from $400.00 to $475.00 and gave the company a “buy” rating in a research report on Thursday. JPMorgan Chase & Co. raised their target price on shares of Lithia Motors from $320.00 to $325.00 and gave the company a “neutral” rating in a research note on Thursday, May 7th. UBS Group lowered shares of Lithia Motors from a “buy” rating to a “neutral” rating and lifted their target price for the company from $370.00 to $440.00 in a research report on Thursday. Barclays decreased their price target on shares of Lithia Motors from $370.00 to $360.00 and set an “overweight” rating on the stock in a report on Wednesday, July 15th. Finally, Bank of America upped their price objective on shares of Lithia Motors from $350.00 to $417.00 and gave the company a “buy” rating in a research note on Thursday, July 9th. Seven investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $423.70.

Lithia Motors Price Performance

LAD traded down $4.34 during trading on Monday, reaching $381.08. 220,389 shares of the company were exchanged, compared to its average volume of 322,727. Lithia Motors has a 12-month low of $239.78 and a 12-month high of $439.49. The company has a market cap of $8.69 billion, a price-to-earnings ratio of 12.65, a P/E/G ratio of 0.84 and a beta of 1.26. The company has a quick ratio of 0.21, a current ratio of 1.00 and a debt-to-equity ratio of 1.46. The company’s 50-day moving average is $313.76 and its two-hundred day moving average is $295.79.

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, topping the consensus estimate of $8.73 by $1.30. The firm had revenue of $9.79 billion for the quarter, compared to analysts’ expectations of $9.64 billion. Lithia Motors had a net margin of 1.88% and a return on equity of 12.16%. The business’s quarterly revenue was up 2.2% on a year-over-year basis. During the same quarter in the prior year, the firm posted $10.24 earnings per share. Research analysts forecast that Lithia Motors will post 34.9 earnings per share for the current fiscal year.

Lithia Motors declared that its Board of Directors has authorized a share buyback plan on Tuesday, May 26th that authorizes the company to buyback $500.00 million in outstanding shares. This buyback authorization authorizes the company to buy up to 7.9% of its stock through open market purchases. Stock buyback plans are usually an indication that the company’s leadership believes its shares are undervalued.

Insider Buying and Selling

In related news, Director Shauna Mcintyre sold 165 shares of the company’s stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $305.64, for a total transaction of $50,430.60. Following the completion of the sale, the director owned 1,681 shares in the company, valued at approximately $513,780.84. This represents a 8.94% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Richard J. Bailey, Jr. sold 297 shares of the stock in a transaction dated 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 transaction, the director directly owned 760 shares in the company, valued at approximately $213,233.20. This represents a 28.10% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 782 shares of company stock valued at $229,572. 1.08% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Lithia Motors

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

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.