Barclays Has Lowered Expectations for Lithia Motors (NYSE:LAD) Stock Price

Key Points

• Barclays trimmed its price target for Lithia Motors from $380 to $370 but maintained an "overweight" rating, with the $370 target implying about a 42.3% upside from the current share price.
• Analyst sentiment is mixed—six Buy ratings, five Hold and one Sell—resulting in a MarketBeat consensus rating of "Hold" and a consensus target of $381.22.
• Lithia recently missed quarterly EPS estimates ($6.74 vs. $8.09) while revenue was roughly in line, and the stock trades near $260 with a relatively low P/E of 8.09, suggesting a cheaper valuation despite the earnings miss.

Lithia Motors (NYSE:LAD - Get Free Report) had its price target cut by research analysts at Barclays from $380.00 to $370.00 in a report issued on Tuesday,Benzinga reports. The firm currently has an "overweight" rating on the stock. Barclays's target price indicates a potential upside of 42.30% from the stock's current price.

LAD has been the topic of several other reports. Bank of America began coverage on shares of Lithia Motors in a report on Wednesday, March 4th. They issued a "neutral" rating on the stock. Zacks Research downgraded Lithia Motors from a "hold" rating to a "strong sell" rating in a report on Wednesday, March 25th. Citigroup cut their price target on Lithia Motors from $399.00 to $366.00 and set a "buy" rating on the stock in a report on Thursday, March 5th. Wall Street Zen downgraded Lithia Motors from a "hold" rating to a "sell" rating in a report on Saturday, February 28th. Finally, Weiss Ratings reiterated a "hold (c+)" rating on shares of Lithia Motors in a report on Thursday, January 22nd. Six investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Lithia Motors currently has a consensus rating of "Hold" and a consensus target price of $381.22.

Lithia Motors Stock Performance

LAD stock traded up $2.45 during trading on Tuesday, hitting $260.02. 115,050 shares of the company traded hands, compared to its average volume of 314,395. The stock's 50-day simple moving average is $282.72 and its 200 day simple moving average is $307.68. The company has a debt-to-equity ratio of 1.46, a current ratio of 1.17 and a quick ratio of 0.26. The company has a market cap of $6.08 billion, a PE ratio of 8.09, a P/E/G ratio of 0.60 and a beta of 1.22. Lithia Motors has a 1 year low of $239.78 and a 1 year high of $360.55.

Lithia Motors (NYSE:LAD - Get Free Report) last announced its quarterly earnings results on Wednesday, February 11th. The company reported $6.74 earnings per share for the quarter, missing the consensus estimate of $8.09 by ($1.35). Lithia Motors had a net margin of 2.18% and a return on equity of 12.76%. The company had revenue of $9.20 billion for the quarter, compared to analysts' expectations of $9.19 billion. During the same quarter in the prior year, the business posted $7.79 earnings per share. The firm's revenue was up .3% compared to the same quarter last year. On average, equities analysts expect that Lithia Motors will post 34.45 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Lithia Motors

Several hedge funds have recently made changes to their positions in LAD. Norges Bank acquired a new stake in shares of Lithia Motors during the fourth quarter worth $125,214,000. River Road Asset Management LLC boosted its holdings in Lithia Motors by 33.6% in the fourth quarter. River Road Asset Management LLC now owns 742,677 shares of the company's stock valued at $246,814,000 after acquiring an additional 186,628 shares during the last quarter. Life Cycle Investment Partners Ltd acquired a new position in Lithia Motors in the fourth quarter valued at $58,409,000. Hennessy Advisors Inc. acquired a new position in Lithia Motors in the third quarter valued at $39,342,000. Finally, Corient Private Wealth LLC boosted its holdings in Lithia Motors by 8,474.0% in the fourth quarter. Corient Private Wealth LLC now owns 107,690 shares of the company's stock valued at $35,789,000 after acquiring an additional 106,434 shares during the last quarter.

Lithia Motors Company Profile

Lithia Motors, Inc is an American automotive retailer headquartered in Medford, Oregon. Founded in 1946 as a small auto body and glass shop, the company has grown through organic expansion and strategic acquisitions to become one of the largest automotive retail networks in North America. Lithia operates dealerships across the United States and Canada, offering a broad portfolio of new and pre-owned vehicles from more than 40 different manufacturers.

The company's core business activities include vehicle sales, financing, insurance, parts and service.

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