Lithia Motors (NYSE:LAD) Stock Price Target Lowered at Citigroup

Lithia Motors (NYSE:LAD) had its price objective cut by investment analysts at Citigroup from $409.00 to $386.00 in a note issued to investors on Friday, Benzinga reports. The brokerage currently has a “buy” rating on the stock. Citigroup‘s target price would indicate a potential upside of 30.87% from the stock’s current price.

Several other research analysts also recently commented on LAD. Benchmark lifted their target price on shares of Lithia Motors from $400.00 to $475.00 and gave the stock a “buy” rating in a research note on Thursday, July 30th. JPMorgan Chase & Co. dropped their price target on shares of Lithia Motors from $320.00 to $315.00 and set a “neutral” rating for the company in a research report on Thursday. Jefferies Financial Group reissued a “buy” rating and issued a $490.00 price target on shares of Lithia Motors in a report on Thursday, July 30th. Weiss Ratings cut shares of Lithia Motors from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Wednesday, October 14th. Finally, Barclays lowered their price objective on shares of Lithia Motors from $375.00 to $345.00 and set an “overweight” rating for the company in a research note on Friday. Six equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $393.80.

Lithia Motors Trading Up 1.3%

Lithia Motors stock traded up $3.87 during trading hours on Friday, reaching $294.94. The company had a trading volume of 265,561 shares, compared to its average volume of 317,109. 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 has a 50-day moving average price of $331.86 and a 200 day moving average price of $315.40. The firm has a market cap of $6.48 billion, a price-to-earnings ratio of 9.77, a P/E/G ratio of 0.62 and a beta of 1.27. Lithia Motors has a 12-month low of $239.78 and a 12-month high of $439.49.

Lithia Motors (NYSE:LAD) last released its quarterly earnings data on Wednesday, October 21st. The company reported $10.34 earnings per share for the quarter, beating analysts’ consensus estimates of $9.70 by $0.64. The firm had revenue of $9.95 billion during the quarter, compared to analyst estimates of $9.75 billion. Lithia Motors had a return on equity of 12.05% and a net margin of 2.06%. The business’s quarterly revenue was up 2.8% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $9.50 earnings per share. Equities analysts forecast that Lithia Motors will post 35.60 earnings per share for the current year.

Insider Activity

In other news, Director Stacy Congdon sold 75 shares of the business’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 transaction of $27,804.75. Following the transaction, the director directly owned 2,300 shares of the company’s stock, valued at approximately $852,679. The trade was a 3.16% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 1.08% of the company’s stock.

Institutional Trading of Lithia Motors

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. BlackRock Inc. bought a new stake in Lithia Motors in the second quarter valued at $696,482,000. Madison Asset Management LLC bought a new position in Lithia Motors in the 2nd quarter worth $66,988,000. Bank of New York Mellon Corp bought a new position in Lithia Motors in the 2nd quarter worth $63,015,000. The Manufacturers Life Insurance Company purchased a new stake in shares of Lithia Motors in the 2nd quarter worth about $42,718,000. Finally, Bank of America Corp DE purchased a new stake in shares of Lithia Motors in the 2nd quarter worth about $21,371,000.

Lithia Motors News Roundup

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

• Positive Sentiment: Strong quarterly results: Lithia reported third-quarter earnings of $10.34 per share, above the $9.70 consensus estimate, while revenue reached $9.95 billion versus expectations of $9.75 billion. Revenue increased 2.8% year over year, helping support the initial positive reaction in LAD shares. Lithia Motors Shares Gap Up on Strong Earnings
• Positive Sentiment: Finance and used-vehicle performance improved: Driveway Finance Corporation’s income rose nearly 70% to $32 million, and used-vehicle gross profit per unit increased 13% year over year. These gains provide support for earnings even as other parts of the dealership business face pressure. Lithia: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: Dividend increased: Lithia declared a quarterly dividend of $0.75 per share, up 7.1% from $0.70, for an annualized payout of $3.00 and a yield of approximately 1.1%. The dividend adds shareholder support but is unlikely to offset broader concerns about the company’s financial risks.
• Negative Sentiment: Multiple price-target reductions: UBS cut its target from $335 to $305 and maintained a neutral rating, while JPMorgan lowered its target from $320 to $315 and also remained neutral. Barclays reduced its target from $375 to $345 but retained an overweight rating. The cuts suggest analysts see less upside despite LAD’s earnings beat.
• Negative Sentiment: Rising interest costs and leverage are weighing on sentiment: Coverage highlighted net debt of approximately $15.77 billion, rising interest costs and elevated auto-loan delinquencies. Revenue growth has been supported by acquisitions, but profitability per vehicle—particularly in new vehicles—is under pressure. A downgrade from buy to hold reflects concerns that economic risks may outweigh LAD’s low cash-flow valuation multiples. 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.