JPMorgan Chase & Co. Cuts Lithia Motors (NYSE:LAD) Price Target to $315.00

Key Points

• JPMorgan Chase & Co. has lowered its price target for Lithia Motors (NYSE:LAD) from $335.00 to $315.00, while maintaining an "overweight" rating on the stock.
• Despite the downgrade by JPMorgan, other analysts like Bank of America have increased their target to $500.00, highlighting a mixed outlook within the investment community.
• Lithia Motors reported $10.24 EPS for the last quarter, which exceeded analysts' estimates, with total revenue hitting $9.58 billion.

Lithia Motors (NYSE:LAD - Free Report) had its target price cut by JPMorgan Chase & Co. from $335.00 to $315.00 in a research note published on Tuesday morning,Benzinga reports. They currently have an overweight rating on the stock.

Other equities research analysts also recently issued research reports about the company. Bank of America upped their price target on Lithia Motors from $430.00 to $500.00 and gave the stock a "buy" rating in a report on Monday, June 16th. Wells Fargo & Company decreased their price target on Lithia Motors from $364.00 to $317.00 and set an "equal weight" rating for the company in a report on Wednesday, July 30th. Guggenheim cut their price objective on Lithia Motors from $417.00 to $356.00 and set a "buy" rating on the stock in a research report on Tuesday, April 22nd. Citigroup raised Lithia Motors from a "neutral" rating to a "buy" rating and cut their price objective for the stock from $415.00 to $375.00 in a research report on Wednesday, April 23rd. Finally, The Goldman Sachs Group assumed coverage on Lithia Motors in a research report on Tuesday, June 3rd. They issued a "neutral" rating and a $340.00 price objective on the stock. Four equities research analysts have rated the stock with a hold rating and seven have given a buy rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $376.60.

Lithia Motors Stock Down 0.2%

Shares of NYSE LAD traded down $0.61 during midday trading on Tuesday, hitting $292.21. 253,263 shares of the stock traded hands, compared to its average volume of 390,020. The company has a market cap of $7.61 billion, a PE ratio of 8.66, a P/E/G ratio of 0.45 and a beta of 1.30. Lithia Motors has a one year low of $255.32 and a one year high of $405.67. The business has a 50 day moving average price of $323.31 and a two-hundred day moving average price of $321.01. The company has a debt-to-equity ratio of 1.24, a quick ratio of 0.29 and a current ratio of 1.22.

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

Lithia Motors Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, August 22nd. Stockholders of record on Friday, August 8th will be given a dividend of $0.55 per share. This represents a $2.20 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend is Friday, August 8th. Lithia Motors's dividend payout ratio is currently 6.52%.

Insider Activity at Lithia Motors

In related news, Director Shauna Mcintyre sold 256 shares of the stock in a transaction dated Thursday, July 31st. The stock was sold at an average price of $293.05, for a total transaction of $75,020.80. Following the sale, the director owned 1,376 shares of the company's stock, valued at approximately $403,236.80. This represents a 15.69% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 0.87% of the stock is owned by corporate insiders.

Institutional Trading of Lithia Motors

A number of institutional investors have recently added to or reduced their stakes in the stock. Coppell Advisory Solutions LLC raised its holdings in shares of Lithia Motors by 10,136,710.0% in the 1st quarter. Coppell Advisory Solutions LLC now owns 2,027,362 shares of the company's stock valued at $595,112,000 after acquiring an additional 2,027,342 shares in the last quarter. Steadfast Capital Management LP raised its holdings in shares of Lithia Motors by 137.8% in the 4th quarter. Steadfast Capital Management LP now owns 460,298 shares of the company's stock valued at $164,524,000 after acquiring an additional 266,715 shares in the last quarter. Park West Asset Management LLC purchased a new stake in shares of Lithia Motors in the 1st quarter valued at about $58,825,000. Millennium Management LLC raised its holdings in shares of Lithia Motors by 1,840.6% in the 1st quarter. Millennium Management LLC now owns 181,777 shares of the company's stock valued at $53,359,000 after acquiring an additional 172,410 shares in the last quarter. Finally, Assenagon Asset Management S.A. bought a new position in shares of Lithia Motors during the 1st quarter valued at about $36,762,000.

About Lithia Motors

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.