Lithia Motors, Inc. (NYSE:LAD) Stock Has Average Price Target of $402.60 According to Brokerages

Key Points

• Analyst sentiment is moderately bullish: Twelve brokerages give Lithia Motors an average “Moderate Buy” rating, with a consensus 12-month price target of $402.60. Recent targets range from $320 at JPMorgan to $490 at Jefferies.
• Shares opened at $286.48, down 1.3%: The stock remains below its 52-week high of $439.49, while the company carries a $6.30 billion market capitalization and a 9.50 price-to-earnings ratio.
• Quarterly results beat expectations and the dividend increased: Lithia reported $10.03 in quarterly EPS versus an $8.73 consensus estimate, with revenue of $9.79 billion. Its quarterly dividend rose to $0.70, equivalent to an annualized $2.80 payout and a 1.0% yield.

Lithia Motors, Inc. (NYSE:LAD - Get Free Report) has received an average rating of "Moderate Buy" from the twelve research firms that are covering the stock, MarketBeat reports. Five equities research analysts have rated the stock with a hold recommendation and seven have given a buy recommendation to the company. The average 1-year target price among brokerages that have covered the stock in the last year is $402.60.

A number of brokerages recently weighed in on LAD. Barclays reduced their price objective on Lithia Motors from $415.00 to $375.00 and set an "overweight" rating on the stock in a research report on Tuesday, October 6th. 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 report on Thursday, July 30th. Jefferies Financial Group reissued a "buy" rating and set a $490.00 price target on shares of Lithia Motors in a research note on Thursday, July 30th. JPMorgan Chase & Co. cut their price target on Lithia Motors from $340.00 to $320.00 and set a "neutral" rating on the stock in a research note on Tuesday, October 6th. Finally, Weiss Ratings upgraded Lithia Motors from a "hold (c+)" rating to a "buy (b-)" rating in a report on Thursday, September 24th.

Lithia Motors Stock Down 1.3%

Shares of NYSE:LAD opened at $286.48 on Tuesday. The company has a fifty day moving average of $345.70 and a 200-day moving average of $313.28. The company has a market capitalization of $6.30 billion, a PE ratio of 9.50, a price-to-earnings-growth ratio of 0.62 and a beta of 1.27. The company has a debt-to-equity ratio of 1.46, a quick ratio of 0.21 and a current ratio of 1.00. Lithia Motors has a 52-week low of $239.78 and a 52-week high of $439.49.

Lithia Motors (NYSE:LAD - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The company reported $10.03 EPS for the quarter, beating analysts' consensus estimates of $8.73 by $1.30. Lithia Motors had a return on equity of 12.16% and a net margin of 1.88%. The company had revenue of $9.79 billion during the quarter, compared to analysts' expectations of $9.64 billion. During the same period in the prior year, the company earned $10.24 EPS. Lithia Motors's revenue was up 2.2% compared to the same quarter last year. On average, equities analysts predict that Lithia Motors will post 35.70 EPS for the current fiscal year.

Lithia Motors Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 21st. Investors of record on Friday, August 7th were issued a $0.70 dividend. This is a boost from Lithia Motors's previous quarterly dividend of $0.57. The ex-dividend date was Friday, August 7th. This represents a $2.80 dividend on an annualized basis and a yield of 1.0%. Lithia Motors's dividend payout ratio (DPR) is 9.29%.

Insider Transactions at Lithia Motors

In related 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 transaction of $27,804.75. Following 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.08% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Lithia Motors

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. GAMMA Investing LLC raised its stake in shares of Lithia Motors by 145.1% during the third quarter. GAMMA Investing LLC now owns 424 shares of the company's stock valued at $124,000 after acquiring an additional 251 shares during the last quarter. Farther Finance Advisors LLC grew its stake in shares of Lithia Motors by 76.7% in the third quarter. Farther Finance Advisors LLC now owns 182 shares of the company's stock worth $53,000 after purchasing an additional 79 shares during the last quarter. Versant Capital Management Inc grew its stake in shares of Lithia Motors by 46.5% in the third quarter. Versant Capital Management Inc now owns 186 shares of the company's stock worth $54,000 after purchasing an additional 59 shares during the last quarter. QRG Capital Management Inc. increased its holdings in Lithia Motors by 5.3% in the second quarter. QRG Capital Management Inc. now owns 2,165 shares of the company's stock valued at $629,000 after purchasing an additional 109 shares during the period. Finally, Sequoia Financial Advisors LLC acquired a new stake in Lithia Motors in the second quarter valued at $241,000.

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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