JPMorgan Chase & Co. Issues Positive Forecast for Lithia Motors (NYSE:LAD) Stock Price

Key Points

• JPMorgan Chase & Co. has increased its price target for Lithia Motors from $320.00 to $350.00, suggesting a potential upside of 15.38% from the current stock price.
• Several analysts have varying ratings for Lithia Motors, with eight rating it as a "Buy" and three as "Hold," resulting in a consensus rating of "Moderate Buy" and an average price target of $380.00.
• Lithia Motors has initiated a $750 million share buyback program, allowing the repurchase of up to 9% of its outstanding shares, indicating confidence in its stock value.

Lithia Motors (NYSE:LAD - Get Free Report) had its price objective upped by research analysts at JPMorgan Chase & Co. from $320.00 to $350.00 in a note issued to investors on Tuesday,Benzinga reports. The firm currently has an "overweight" rating on the stock. JPMorgan Chase & Co.'s price objective points to a potential upside of 15.38% from the stock's current price.

Several other analysts have also recently weighed in on LAD. Jefferies Financial Group assumed coverage on shares of Lithia Motors in a research note on Thursday, September 4th. They issued a "buy" rating and a $400.00 price objective for the company. Wells Fargo & Company dropped their target price on shares of Lithia Motors from $364.00 to $317.00 and set an "equal weight" rating for the company in a research report on Wednesday, July 30th. Guggenheim dropped their target price on shares of Lithia Motors from $383.00 to $380.00 and set a "buy" rating for the company in a research report on Monday, August 11th. Bank of America dropped their target price on shares of Lithia Motors from $500.00 to $385.00 and set a "buy" rating for the company in a research report on Wednesday, September 10th. Finally, Weiss Ratings cut shares of Lithia Motors from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday, October 8th. Eight equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $380.00.

Lithia Motors Stock Performance

Shares of LAD opened at $303.35 on Tuesday. The firm has a 50-day moving average of $320.75 and a 200-day moving average of $315.38. Lithia Motors has a one year low of $262.10 and a one year high of $405.67. The company has a market cap of $7.78 billion, a PE ratio of 8.99, a price-to-earnings-growth ratio of 0.60 and a beta of 1.28. The company has a debt-to-equity ratio of 1.24, a current ratio of 1.22 and a quick ratio of 0.29.

Lithia Motors (NYSE:LAD - Get Free Report) last issued its quarterly earnings data on Tuesday, July 29th. The company reported $10.24 earnings per share for the quarter, topping the consensus estimate of $9.78 by $0.46. Lithia Motors had a net margin of 2.39% and a return on equity of 13.21%. The business had revenue of $9.58 billion during the quarter, compared to analysts' expectations of $9.56 billion. As a group, equities analysts forecast that Lithia Motors will post 34.45 earnings per share for the current year.

Lithia Motors declared that its Board of Directors has initiated a share buyback program on Tuesday, August 26th that permits the company to repurchase $750.00 million in outstanding shares. This repurchase authorization permits the company to reacquire up to 9% of its stock through open market purchases. Stock repurchase programs are often a sign that the company's board believes its shares are undervalued.

Insider Activity

In other news, Director Shauna Mcintyre sold 256 shares of the business's stock in a transaction that occurred on Thursday, July 31st. The shares were sold at an average price of $293.05, for a total value of $75,020.80. Following the transaction, the director owned 1,376 shares in the company, valued at approximately $403,236.80. The trade was a 15.69% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 0.87% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. GAMMA Investing LLC raised its holdings in Lithia Motors by 50.9% during the first quarter. GAMMA Investing LLC now owns 252 shares of the company's stock worth $74,000 after buying an additional 85 shares during the last quarter. Wealth Enhancement Advisory Services LLC lifted its holdings in Lithia Motors by 118.1% during the first quarter. Wealth Enhancement Advisory Services LLC now owns 1,841 shares of the company's stock valued at $541,000 after purchasing an additional 997 shares during the last quarter. Exchange Traded Concepts LLC lifted its holdings in Lithia Motors by 2.6% during the first quarter. Exchange Traded Concepts LLC now owns 3,144 shares of the company's stock valued at $923,000 after purchasing an additional 79 shares during the last quarter. Janney Montgomery Scott LLC lifted its holdings in shares of Lithia Motors by 1,865.4% in the first quarter. Janney Montgomery Scott LLC now owns 92,293 shares of the company's stock worth $27,092,000 after buying an additional 87,597 shares in the last quarter. Finally, QRG Capital Management Inc. lifted its holdings in shares of Lithia Motors by 6.4% in the first quarter. QRG Capital Management Inc. now owns 2,042 shares of the company's stock worth $599,000 after buying an additional 123 shares in the last quarter.

Lithia Motors Company Profile

Lithia Motors, Inc operates as an automotive retailer worldwide. It operates in two segments, Vehicle Operations and Financing Operations. The company's Vehicle Operations segment sells new and used vehicles; provides parts, repair, and maintenance services; vehicle finance; and insurance products. Its Financing Operations segment provides financing to customers buying and leasing retail vehicles.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.