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

Lithia Motors (NYSE:LAD) had its price target trimmed by Barclays from $375.00 to $345.00 in a research report released on Friday,Benzinga reports. The brokerage currently has an overweight rating on the stock.

A number of other research firms have also weighed in on LAD. Morgan Stanley lowered their price objective on Lithia Motors from $358.00 to $310.00 and set an “equal weight” rating on the stock in a research note on Monday, October 5th. JPMorgan Chase & Co. cut their target price on Lithia Motors from $320.00 to $315.00 and set a “neutral” rating for the company in a research note on Thursday. Benchmark lifted their price target on Lithia Motors from $400.00 to $475.00 and gave the stock a “buy” rating in a report on Thursday, July 30th. UBS Group reduced their price target on Lithia Motors from $335.00 to $305.00 and set a “neutral” rating on the stock in a 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 company a “buy” rating in a research report on Thursday, July 9th. Six analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat, Lithia Motors has an average rating of “Moderate Buy” and a consensus target price of $393.80.

Lithia Motors Trading Down 0.3%

LAD opened at $294.55 on Friday. The company has a debt-to-equity ratio of 1.44, a current ratio of 1.00 and a quick ratio of 0.21. The company’s 50 day simple moving average is $330.21 and its two-hundred day simple moving average is $315.66. Lithia Motors has a 1-year low of $239.78 and a 1-year high of $439.49. The firm has a market capitalization of $6.47 billion, a price-to-earnings ratio of 8.47, a price-to-earnings-growth ratio of 0.68 and a beta of 1.27.

Lithia Motors (NYSE:LAD) last issued its earnings results on Wednesday, October 21st. The company reported $10.34 earnings per share for the quarter, topping the consensus estimate of $9.70 by $0.64. The business had revenue of $9.95 billion for the quarter, compared to analysts’ expectations of $9.75 billion. Lithia Motors had a return on equity of 12.05% and a net margin of 2.06%. The business’s revenue for the quarter was up 2.8% compared to the same quarter last year. During the same period in the previous year, the firm posted $9.50 EPS. Analysts expect that Lithia Motors will post 35.78 EPS for the current fiscal year.

Lithia Motors Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, November 20th. Stockholders of record on Friday, November 6th will be issued a dividend of $0.75 per share. The ex-dividend date is Friday, November 6th. This represents a $3.00 dividend on an annualized basis and a dividend yield of 1.0%. This is a boost from Lithia Motors’s previous quarterly dividend of $0.70. Lithia Motors’s dividend payout ratio (DPR) is currently 8.06%.

Insider Buying and Selling at Lithia Motors

In related news, Director Stacy Congdon sold 75 shares of the firm’s stock in a transaction dated Friday, September 11th. The stock was sold at an average price of $370.73, for a total transaction of $27,804.75. Following the completion of the sale, the director directly owned 2,300 shares of the company’s stock, valued at approximately $852,679. This trade represents a 3.16% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 1.08% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the stock. Addison Advisors LLC acquired a new stake in shares of Lithia Motors during the second quarter valued at about $30,000. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in shares of Lithia Motors in the 2nd quarter valued at approximately $30,000. Versant Capital Management Inc raised its stake in shares of Lithia Motors by 1,311.1% in the 2nd quarter. Versant Capital Management Inc now owns 127 shares of the company’s stock valued at $37,000 after acquiring an additional 118 shares during the period. Bessemer Group Inc. lifted its holdings in shares of Lithia Motors by 68.0% in the 1st quarter. Bessemer Group Inc. now owns 173 shares of the company’s stock worth $43,000 after acquiring an additional 70 shares during the last quarter. Finally, GAMMA Investing LLC lifted its holdings in shares of Lithia Motors by 32.1% in the 2nd quarter. GAMMA Investing LLC now owns 173 shares of the company’s stock worth $50,000 after acquiring an additional 42 shares during the last quarter.

More Lithia Motors News

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.