Lithia Motors, Inc. (NYSE:LAD) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Analysts maintain a “Moderate Buy” consensus on Lithia Motors, with eight buy ratings and four holds. The average 12-month price target is $380.33.
• Second-quarter results exceeded expectations: revenue rose 2.2% year over year to approximately $9.8 billion, while adjusted EPS came in at $10.03 versus the $8.73 consensus estimate.
• Lithia strengthened shareholder returns by repurchasing $242 million of stock during the quarter and raising its quarterly dividend 22.8% to $0.70 per share, though the stock’s sharp rally and broader economic pressures could increase downside risk.

Lithia Motors, Inc. (NYSE:LAD - Get Free Report) has been given a consensus recommendation of "Moderate Buy" by the twelve brokerages that are presently covering the stock, Marketbeat reports. Four investment analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company. The average twelve-month target price among analysts that have issued a report on the stock in the last year is $380.3333.

A number of equities research analysts have issued reports on the stock. UBS Group raised their price target on shares of Lithia Motors from $348.00 to $370.00 and gave the stock a "buy" rating in a report on Friday, July 10th. Wells Fargo & Company upped their price objective on shares of Lithia Motors from $305.00 to $306.00 and gave the company an "equal weight" rating in a research note on Monday, July 6th. JPMorgan Chase & Co. increased their target price on shares of Lithia Motors from $320.00 to $325.00 and gave the stock a "neutral" rating in a report on Thursday, May 7th. Weiss Ratings raised Lithia Motors from a "hold (c-)" rating to a "hold (c)" rating in a research note on Tuesday, July 21st. Finally, Bank of America boosted their price target on Lithia Motors from $350.00 to $417.00 and gave the company a "buy" rating in a report on Thursday, July 9th.

More Lithia Motors News

Here are the key news stories impacting Lithia Motors this week:

• Positive Sentiment: Second-quarter earnings and revenue exceeded expectations. Lithia reported record revenue of approximately $9.8 billion, up 2.2% year over year. Adjusted diluted EPS was $10.03, ahead of the roughly $8.67–$8.73 consensus, while reported diluted EPS was $11.54, a 17% increase. Lithia & Driveway second-quarter results
• Positive Sentiment: Profitability indicators improved despite challenging market conditions. Used-vehicle retail gross profit per unit increased $339, or 20%, sequentially. Aftersales gross margin reached 59.2%, up 120 basis points on a same-store basis, while adjusted SG&A as a percentage of gross profit improved by 290 basis points.
• Positive Sentiment: Shareholder returns were strengthened. Lithia repurchased $242 million of stock during the quarter—equivalent to 3.7% of shares outstanding—and has repurchased 7.6% of shares in the first half of 2026. The company also raised its quarterly dividend 22.8%, from $0.57 to $0.70 per share. Investors of record on August 7 will receive the dividend on August 21. Lithia Motors reaches record high
• Positive Sentiment: Financing operations delivered record results. The unit generated $37 million in income and $884 million in originations, with a 17.5% penetration rate, adding support to earnings diversification.
• Neutral Sentiment: The stock’s rally has pushed it close to its 52-week high, with elevated trading volume. Its valuation remains moderate at roughly 15 times earnings, but the sharp move may increase sensitivity to any earnings disappointment.
• Negative Sentiment: Broader-market conditions were unfavorable as oil prices surged amid rising U.S.-Iran tensions and major indexes sold off ahead of the Federal Reserve’s interest-rate decision. Higher fuel costs, interest rates, or renewed economic concerns could pressure vehicle demand and financing activity. Market sell-off and oil spike

Lithia Motors Stock Performance

NYSE:LAD opened at $425.35 on Thursday. The company has a debt-to-equity ratio of 1.41, a quick ratio of 0.24 and a current ratio of 0.99. Lithia Motors has a fifty-two week low of $239.78 and a fifty-two week high of $439.49. The firm has a market cap of $9.70 billion, a PE ratio of 14.94, a price-to-earnings-growth ratio of 0.84 and a beta of 1.26. The business has a 50 day moving average price of $308.92 and a 200-day moving average price of $294.90.

Lithia Motors (NYSE:LAD - Get Free Report) last issued its earnings results on Wednesday, July 29th. The company reported $10.03 EPS for the quarter, topping the consensus estimate of $8.73 by $1.30. Lithia Motors had a net margin of 1.88% and a return on equity of 12.49%. The company had revenue of $9.79 billion for the quarter, compared to the consensus estimate of $9.64 billion. During the same period in the previous year, the firm earned $10.24 earnings per share. The firm's revenue for the quarter was up 2.2% on a year-over-year basis. Equities research analysts predict that Lithia Motors will post 34.19 earnings per share for the current year.

Lithia Motors announced that its Board of Directors has authorized a share buyback program on Tuesday, May 26th that allows the company to repurchase $500.00 million in outstanding shares. This repurchase authorization allows the company to repurchase up to 7.9% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company's board believes its shares are undervalued.

Lithia Motors Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 21st. Stockholders of record on Friday, August 7th will be given a $0.70 dividend. The ex-dividend date is Friday, August 7th. This represents a $2.80 dividend on an annualized basis and a dividend yield of 0.7%. This is an increase from Lithia Motors's previous quarterly dividend of $0.57. Lithia Motors's dividend payout ratio is 8.01%.

Insider Activity at Lithia Motors

In related news, Director Richard J. Bailey, Jr. sold 297 shares of the firm's stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $280.57, for a total value of $83,329.29. Following the completion of the sale, the director owned 760 shares of the company's stock, valued at $213,233.20. This trade represents a 28.10% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Shauna Mcintyre sold 245 shares of Lithia Motors stock in a transaction on Monday, May 11th. The shares were sold at an average price of $294.64, for a total transaction of $72,186.80. Following the completion of the sale, the director owned 1,846 shares in the company, valued at approximately $543,905.44. This trade represents a 11.72% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 782 shares of company stock worth $229,572 over the last three months. Insiders own 1.08% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the stock. Clearstead Advisors LLC lifted 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 purchasing an additional 49 shares during the period. V Square Quantitative Management LLC purchased a new position in shares of Lithia Motors during the fourth quarter valued at about $34,000. Quarry LP raised its stake in Lithia Motors by 101.9% in the fourth quarter. Quarry LP now owns 109 shares of the company's stock worth $36,000 after buying an additional 55 shares in the last quarter. Versant Capital Management Inc raised its stake in Lithia Motors by 1,311.1% in the second quarter. Versant Capital Management Inc now owns 127 shares of the company's stock worth $37,000 after buying an additional 118 shares in the last quarter. Finally, Los Angeles Capital Management LLC purchased a new stake in Lithia Motors in the fourth quarter worth about $38,000.

About Lithia Motors

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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