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

Key Points

• Citigroup cut its target on Lithia Motors from $399 to $366 but kept a "buy" rating, implying roughly a 37.5% upside from the stock's current level.
• Lithia missed quarterly EPS expectations ($6.74 vs. $8.09) while revenue was roughly in line at $9.20 billion, and shares recently traded down to $266.22 (one‑year range $262.10–$360.55) with a market cap of about $6.46 billion.
• Analysts are mixed but biased positive: the consensus is a "Moderate Buy" with an average target of $382.33, while individual targets and ratings vary significantly (e.g., Evercore $500/outperform, JPMorgan $335/neutral).

Lithia Motors (NYSE:LAD - Get Free Report) had its target price decreased by equities research analysts at Citigroup from $399.00 to $366.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The brokerage presently has a "buy" rating on the stock. Citigroup's target price indicates a potential upside of 37.48% from the stock's current price.

Several other equities research analysts also recently issued reports on the company. Weiss Ratings restated a "hold (c+)" rating on shares of Lithia Motors in a research report on Thursday, January 22nd. Evercore boosted their price objective on Lithia Motors from $440.00 to $500.00 and gave the company an "outperform" rating in a research note on Monday, November 24th. Barclays cut their target price on Lithia Motors from $390.00 to $380.00 and set an "overweight" rating for the company in a research note on Tuesday, February 17th. JPMorgan Chase & Co. lowered Lithia Motors from an "overweight" rating to a "neutral" rating and set a $335.00 target price for the company. in a report on Friday, February 20th. Finally, Wells Fargo & Company lowered their price target on shares of Lithia Motors from $358.00 to $355.00 and set an "equal weight" rating on the stock in a report on Thursday, February 12th. Six equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $382.33.

Lithia Motors Stock Performance

Shares of LAD stock traded down $7.09 on Thursday, hitting $266.22. 116,901 shares of the stock were exchanged, compared to its average volume of 294,453. The firm's 50 day moving average is $318.85 and its two-hundred day moving average is $320.16. Lithia Motors has a one year low of $262.10 and a one year high of $360.55. The firm has a market capitalization of $6.46 billion, a PE ratio of 8.28 and a beta of 1.20. The company has a current ratio of 1.17, a quick ratio of 0.26 and a debt-to-equity ratio of 1.46.

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

Insider Activity at Lithia Motors

In other news, Director Congdon Stacy Loretz sold 75 shares of the firm's stock in a transaction on Friday, December 12th. The shares were sold at an average price of $360.00, for a total transaction of $27,000.00. Following the sale, the director owned 1,810 shares in the company, valued at approximately $651,600. This trade represents a 3.98% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. 0.87% of the stock is owned by insiders.

Institutional Investors Weigh In On Lithia Motors

A number of institutional investors have recently made changes to their positions in LAD. CoreCap Advisors LLC bought a new stake in shares of Lithia Motors in the third quarter worth about $26,000. Bessemer Group Inc. lifted its holdings in Lithia Motors by 114.6% in the 2nd quarter. Bessemer Group Inc. now owns 88 shares of the company's stock worth $29,000 after buying an additional 47 shares during the period. Hantz Financial Services Inc. grew its position in shares of Lithia Motors by 1,383.3% in the 2nd quarter. Hantz Financial Services Inc. now owns 89 shares of the company's stock worth $30,000 after buying an additional 83 shares during the last quarter. Clearstead Advisors LLC grew its position in shares of Lithia Motors by 111.4% in the 4th quarter. Clearstead Advisors LLC now owns 93 shares of the company's stock worth $31,000 after buying an additional 49 shares during the last quarter. Finally, Eastern Bank purchased a new position in shares of Lithia Motors during the third quarter valued at approximately $31,000.

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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