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

Lithia Motors (NYSE:LAD) had its price objective decreased by UBS Group from $335.00 to $305.00 in a research report released on Thursday,Benzinga reports. UBS Group currently has a neutral rating on the stock.

A number of other brokerages have also weighed in on LAD. Weiss Ratings lowered shares of Lithia Motors from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, October 14th. Wells Fargo & Company increased their target price on Lithia Motors from $306.00 to $395.00 and gave the company an “equal weight” rating in a research note on Thursday, July 30th. Citigroup reduced their target price on Lithia Motors from $455.00 to $409.00 and set a “buy” rating for the company in a report on Tuesday, September 22nd. Barclays reduced their target price on Lithia Motors from $415.00 to $375.00 and set an “overweight” rating for the company in a report on Tuesday, October 6th. Finally, Morgan Stanley decreased their price target on Lithia Motors from $358.00 to $310.00 and set an “equal weight” rating for the company in a research note on Monday, October 5th. Six analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $393.80.

Lithia Motors Stock Up 1.2%

Shares of Lithia Motors stock opened at $294.55 on Thursday. The company has a debt-to-equity ratio of 1.44, a quick ratio of 0.21 and a current ratio of 1.00. The stock has a market capitalization of $6.47 billion, a PE ratio of 8.47, a price-to-earnings-growth ratio of 0.68 and a beta of 1.27. Lithia Motors has a 52-week low of $239.78 and a 52-week high of $439.49. The company has a 50-day simple moving average of $330.21 and a two-hundred day simple moving average of $315.25.

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

Lithia Motors Increases Dividend

The business 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. This represents a $3.00 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date of this dividend is Friday, November 6th. This is a boost from Lithia Motors’s previous quarterly dividend of $0.70. Lithia Motors’s payout ratio is 8.06%.

Insider Activity at Lithia Motors

In other news, Director Stacy Congdon sold 75 shares of Lithia Motors stock in a transaction that occurred 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 sale, the director directly 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 sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.08% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Addison Advisors LLC purchased a new stake in Lithia Motors in the second quarter worth approximately $30,000. Mitsubishi UFJ Asset Management Co. Ltd. bought a new stake in Lithia Motors in the 2nd quarter worth approximately $30,000. Versant Capital Management Inc grew its position in Lithia Motors by 1,311.1% in 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. Caitong International Asset Management Co. Ltd raised its stake in Lithia Motors by 225.5% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 166 shares of the company’s stock valued at $55,000 after buying an additional 115 shares during the last quarter. Finally, Bessemer Group Inc. raised its stake in Lithia Motors by 68.0% during the 1st quarter. Bessemer Group Inc. now owns 173 shares of the company’s stock valued at $43,000 after buying an additional 70 shares during the last quarter.

Key Stories Impacting Lithia Motors

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

About Lithia Motors

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.