Lithia Motors FY2025 EPS Estimate Lifted by Zacks Research

Key Points

• Analysts at Zacks Research have raised their FY2025 earnings per share estimate for Lithia Motors to $35.23, exceeding the previous forecast of $35.13.
• The company has been rated as a "buy" by several firms, with Jefferies Financial Group initiating coverage and setting a target price of $400.00.
• Lithia Motors recently authorized a $750 million share buyback program, indicating that its board believes the stock is undervalued.

Lithia Motors, Inc. (NYSE:LAD - Free Report) - Analysts at Zacks Research increased their FY2025 earnings per share (EPS) estimates for Lithia Motors in a research note issued on Monday, September 22nd. Zacks Research analyst Team now forecasts that the company will earn $35.23 per share for the year, up from their previous forecast of $35.13. The consensus estimate for Lithia Motors' current full-year earnings is $34.45 per share. Zacks Research also issued estimates for Lithia Motors' Q4 2025 earnings at $8.45 EPS and Q2 2026 earnings at $9.36 EPS.

Several other analysts have also issued reports on the company. Jefferies Financial Group started coverage on Lithia Motors in a research note on Thursday, September 4th. They issued a "buy" rating and a $400.00 target price on the stock. Bank of America reduced their price target 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. Guggenheim lowered their price target on Lithia Motors from $383.00 to $380.00 and set a "buy" rating on the stock in a report on Monday, August 11th. The Goldman Sachs Group began coverage on shares of Lithia Motors in a research report on Tuesday, June 3rd. They set a "neutral" rating and a $340.00 target price for the company. Finally, Citigroup upped their price objective on Lithia Motors from $378.00 to $383.00 and gave the stock a "buy" rating in a report on Tuesday, August 5th. Eight investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $370.45.

Lithia Motors Stock Performance

Shares of LAD stock opened at $333.89 on Tuesday. The company has a debt-to-equity ratio of 1.24, a quick ratio of 0.29 and a current ratio of 1.22. The firm has a market cap of $8.56 billion, a price-to-earnings ratio of 9.90, a P/E/G ratio of 0.67 and a beta of 1.31. The firm's 50-day simple moving average is $317.90 and its two-hundred day simple moving average is $313.87. Lithia Motors has a 52 week low of $262.10 and a 52 week high of $405.67.

Lithia Motors (NYSE:LAD - Get Free Report) last posted 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. The business had revenue of $9.58 billion for the quarter, compared to analysts' expectations of $9.56 billion. Lithia Motors had a return on equity of 13.21% and a net margin of 2.39%.

Hedge Funds Weigh In On Lithia Motors

Hedge funds and other institutional investors have recently modified their holdings of the stock. Bessemer Group Inc. raised its stake in Lithia Motors by 114.6% in the second quarter. Bessemer Group Inc. now owns 88 shares of the company's stock worth $29,000 after buying an additional 47 shares in the last quarter. Hantz Financial Services Inc. grew its holdings in shares of Lithia Motors by 1,383.3% during the 2nd quarter. Hantz Financial Services Inc. now owns 89 shares of the company's stock worth $30,000 after acquiring an additional 83 shares during the period. Parallel Advisors LLC raised its position in shares of Lithia Motors by 106.2% in the 2nd quarter. Parallel Advisors LLC now owns 134 shares of the company's stock worth $45,000 after acquiring an additional 69 shares in the last quarter. eCIO Inc. purchased a new position in shares of Lithia Motors in the 1st quarter valued at approximately $55,000. Finally, State of Wyoming bought a new stake in shares of Lithia Motors during the second quarter valued at approximately $67,000.

Insiders Place Their Bets

In other Lithia Motors news, Director Shauna Mcintyre sold 256 shares of the business's stock in a transaction on Thursday, July 31st. The shares were sold at an average price of $293.05, for a total transaction of $75,020.80. Following the transaction, the director directly owned 1,376 shares of the company's stock, 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 can be accessed through the SEC website. 0.87% of the stock is currently owned by company insiders.

Lithia Motors Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, August 22nd. Investors of record on Friday, August 8th were issued a $0.55 dividend. The ex-dividend date was Friday, August 8th. This represents a $2.20 annualized dividend and a yield of 0.7%. Lithia Motors's payout ratio is 6.52%.

Lithia Motors announced that its board has authorized a share buyback program on Tuesday, August 26th that allows the company to repurchase $750.00 million in outstanding shares. This repurchase authorization allows the company to repurchase up to 9% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company's board of directors believes its shares are undervalued.

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.

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