Lithia Motors (NYSE:LAD) Stock Price Target Cut by UBS Group

Key Points

• UBS cut Lithia Motors’ price target from $440 to $335 while maintaining a “neutral” rating, implying roughly 16.5% upside from the prior close.
• Analyst sentiment remains generally positive, with seven Buy ratings and five Holds; the consensus rating is “Moderate Buy” with an average price target of $402.60.
• Lithia’s shares fell to $287.62, despite the company beating quarterly earnings and revenue estimates with $10.03 in EPS and $9.79 billion in revenue.

Lithia Motors (NYSE:LAD - Get Free Report) had its price objective decreased by investment analysts at UBS Group from $440.00 to $335.00 in a note issued to investors on Wednesday, Benzinga reports. The firm currently has a "neutral" rating on the stock. UBS Group's price objective suggests a potential upside of 16.47% from the stock's previous close.

A number of other research analysts have also recently weighed in on LAD. Wells Fargo & Company raised their price target on Lithia Motors from $306.00 to $395.00 and gave the company an "equal weight" rating in a research report on Thursday, July 30th. Barclays decreased their price objective on shares of Lithia Motors from $415.00 to $375.00 and set an "overweight" rating on the stock in a research report on Tuesday. JPMorgan Chase & Co. dropped their target price on shares of Lithia Motors from $340.00 to $320.00 and set a "neutral" rating for the company in a report on Tuesday. Morgan Stanley reduced their price target on shares of Lithia Motors from $358.00 to $310.00 and set an "equal weight" rating on the stock in a report on Monday. Finally, Jefferies Financial Group reiterated a "buy" rating and issued a $490.00 price target on shares of Lithia Motors in a research report on Thursday, July 30th. Seven analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $402.60.

Lithia Motors Price Performance

Shares of LAD traded down $4.89 on Wednesday, reaching $287.62. The stock had a trading volume of 262,763 shares, compared to its average volume of 309,354. The firm has a market capitalization of $6.32 billion, a PE ratio of 9.54, a PEG ratio of 0.64 and a beta of 1.27. 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 50-day moving average of $354.59 and a 200 day moving average of $312.17. Lithia Motors has a twelve month low of $239.78 and a twelve month high of $439.49.

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

Insider Buying and Selling

In related news, Director Stacy Congdon sold 75 shares of the 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 transaction, the director directly owned 2,300 shares in the company, valued at approximately $852,679. This represents a 3.16% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 1.08% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of LAD. Addison Advisors LLC purchased a new stake in Lithia Motors in the second quarter valued at approximately $30,000. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in Lithia Motors during the second quarter worth approximately $30,000. Versant Capital Management Inc raised its stake in Lithia Motors by 1,311.1% during the second 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. Bessemer Group Inc. boosted 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 valued at $43,000 after purchasing an additional 70 shares during the last quarter. Finally, GAMMA Investing LLC grew its stake in shares of Lithia Motors by 32.1% during the 2nd quarter. GAMMA Investing LLC now owns 173 shares of the company's stock valued at $50,000 after buying 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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