JPMorgan Chase & Co. Cuts Lithia Motors (NYSE:LAD) Price Target to $320.00

Key Points

• JPMorgan lowered Lithia Motors’ price target from $340 to $320 while maintaining a “neutral” rating, implying approximately 10.2% upside from the stock’s current price.
• Lithia shares fell 4.2% to $290.33, below their 50-day moving average of $355.90 but above their 200-day average of $311.88. The stock’s analyst consensus remains “Moderate Buy,” with an average target of $413.10.
• The company’s latest quarterly results exceeded expectations, reporting $10.03 in earnings per share versus an $8.73 estimate and $9.79 billion in revenue, up 2.2% year over year.

Lithia Motors (NYSE:LAD - Get Free Report) had its price target dropped by analysts at JPMorgan Chase & Co. from $340.00 to $320.00 in a report issued on Tuesday, Benzinga reports. The firm currently has a "neutral" rating on the stock. JPMorgan Chase & Co.'s price objective indicates a potential upside of 10.22% from the company's current price.

Other equities analysts have also recently issued reports about the stock. Wells Fargo & Company raised their target price on shares of Lithia Motors from $306.00 to $395.00 and gave the company an "equal weight" rating in a research note on Thursday, July 30th. Weiss Ratings raised shares of Lithia Motors from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday, September 24th. Jefferies Financial Group reaffirmed a "buy" rating and issued a $490.00 target price on shares of Lithia Motors in a report on Thursday, July 30th. Morgan Stanley cut their target price on shares of Lithia Motors from $358.00 to $310.00 and set an "equal weight" rating for the company in a research note on Monday. Finally, Barclays lowered their price target on Lithia Motors from $415.00 to $375.00 and set an "overweight" rating on the stock in a research report on Tuesday. Seven investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat.com, Lithia Motors has a consensus rating of "Moderate Buy" and a consensus price target of $413.10.

Lithia Motors Stock Down 4.2%

Shares of LAD traded down $12.67 on Tuesday, hitting $290.33. The company's stock had a trading volume of 171,237 shares, compared to its average volume of 308,714. The firm's fifty day moving average price is $355.90 and its 200-day moving average price is $311.88. Lithia Motors has a fifty-two week low of $239.78 and a fifty-two week high of $439.49. 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 firm has a market capitalization of $6.38 billion, a price-to-earnings ratio of 9.61, a P/E/G ratio of 0.65 and a beta of 1.27.

Lithia Motors (NYSE:LAD - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The company reported $10.03 earnings per share (EPS) for the quarter, beating the consensus estimate of $8.73 by $1.30. Lithia Motors had a return on equity of 12.16% and a net margin of 1.88%.The firm had revenue of $9.79 billion for the quarter, compared to the consensus estimate of $9.64 billion. During the same quarter last year, the business posted $10.24 EPS. The company's revenue for the quarter was up 2.2% on a year-over-year basis. On average, equities research analysts expect that Lithia Motors will post 36 EPS for the current year.

Insider Activity

In other 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 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. This trade represents a 3.16% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 1.08% of the company's stock.

Hedge Funds Weigh In On Lithia Motors

Several large investors have recently bought and sold shares of LAD. Addison Advisors LLC purchased a new position in shares of Lithia Motors in the second quarter valued at $30,000. Mitsubishi UFJ Asset Management Co. Ltd. bought a new stake in shares of Lithia Motors in the 2nd quarter valued at about $30,000. Versant Capital Management Inc lifted 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 last quarter. Bessemer Group Inc. boosted its holdings 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 acquiring an additional 70 shares during the period. Finally, GAMMA Investing LLC increased its stake in 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 purchasing an additional 42 shares during the period.

Lithia Motors Company Profile

Lithia Motors, Inc, doing business as Lithia & Driveway NYSE: LAD, is an automotive retailer that operates a network of franchised dealerships and other vehicle-sales businesses. The company sells new and used vehicles from a broad range of automobile manufacturers, including domestic, import and luxury brands.

In addition to vehicle sales, Lithia & Driveway provides automotive financing and insurance products, maintenance and repair services, replacement parts, collision services and other related offerings.

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