Lithia Motors, Inc. (NYSE:LAD) Receives Consensus Rating of "Hold" from Brokerages

Key Points

• Consensus "Hold": Twelve analysts rate Lithia Motors a consensus "Hold" (1 sell, 5 hold, 6 buy) with an average 12‑month target of $361.00.
• Recent analyst actions are mixed and tilted lower — JPMorgan cut its target to $320 (neutral), Wells Fargo to $293 (equal weight) and Zacks downgraded to "strong sell," while Barclays remains overweight at $370.
• Earnings and valuation: Lithia missed quarterly EPS ($6.74 vs. $8.09 est.) while revenue was roughly in line at $9.20B; shares trade around $289 with a P/E of about 9 and a $0.55 quarterly dividend (0.8% yield).

Shares of Lithia Motors, Inc. (NYSE:LAD - Get Free Report) have been assigned a consensus rating of "Hold" from the twelve analysts that are currently covering the company, MarketBeat.com reports. One research analyst has rated the stock with a sell recommendation, five have issued a hold recommendation and six have issued a buy recommendation on the company. The average 12-month target price among brokers that have updated their coverage on the stock in the last year is $361.00.

Several equities analysts have recently weighed in on LAD shares. Weiss Ratings reiterated a "hold (c+)" rating on shares of Lithia Motors in a report on Thursday, January 22nd. JPMorgan Chase & Co. lowered their target price on shares of Lithia Motors from $335.00 to $320.00 and set a "neutral" rating on the stock in a report on Friday. Barclays lowered their target price on shares of Lithia Motors from $380.00 to $370.00 and set an "overweight" rating on the stock in a report on Tuesday, April 7th. Zacks Research lowered shares of Lithia Motors from a "hold" rating to a "strong sell" rating in a report on Wednesday, March 25th. Finally, Wells Fargo & Company lowered their target price on shares of Lithia Motors from $355.00 to $293.00 and set an "equal weight" rating on the stock in a report on Monday, April 13th.

Institutional Investors Weigh In On Lithia Motors

Institutional investors and hedge funds have recently made changes to their positions in the business. Mitsubishi UFJ Trust & Banking Corp bought a new stake in Lithia Motors in the 3rd quarter worth about $1,601,000. Bridges Investment Management Inc. grew its position in Lithia Motors by 3.0% in the 3rd quarter. Bridges Investment Management Inc. now owns 263,157 shares of the company's stock worth $83,158,000 after purchasing an additional 7,558 shares in the last quarter. Abrams Capital Management L.P. grew its position in Lithia Motors by 1.9% in the 3rd quarter. Abrams Capital Management L.P. now owns 2,490,534 shares of the company's stock worth $787,009,000 after purchasing an additional 45,856 shares in the last quarter. Arkadios Wealth Advisors bought a new stake in Lithia Motors in the 3rd quarter worth about $557,000. Finally, Jupiter Asset Management Ltd. bought a new stake in Lithia Motors in the 3rd quarter worth about $548,000.

Lithia Motors Price Performance

Shares of NYSE LAD opened at $289.00 on Tuesday. The firm's 50-day moving average price is $271.46 and its 200-day moving average price is $304.11. Lithia Motors has a 1-year low of $239.78 and a 1-year high of $360.55. The firm has a market capitalization of $6.76 billion, a P/E ratio of 8.99, a P/E/G ratio of 0.67 and a beta of 1.22. The company has a current ratio of 1.17, a quick ratio of 0.26 and a debt-to-equity ratio of 1.46.

Lithia Motors (NYSE:LAD - Get Free Report) last announced its quarterly earnings data on Wednesday, February 11th. The company reported $6.74 earnings per share for the quarter, missing the consensus estimate of $8.09 by ($1.35). Lithia Motors had a net margin of 2.18% and a return on equity of 12.76%. The company had revenue of $9.20 billion for the quarter, compared to analyst estimates of $9.19 billion. During the same quarter in the prior year, the company posted $7.79 EPS. Lithia Motors's revenue for the quarter was up .3% on a year-over-year basis. Equities research analysts anticipate that Lithia Motors will post 35.25 earnings per share for the current fiscal year.

Lithia Motors Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, March 20th. Investors of record on Friday, March 6th were issued a $0.55 dividend. This represents a $2.20 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date was Friday, March 6th. Lithia Motors's dividend payout ratio is currently 6.85%.

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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