Wells Fargo & Company Issues Pessimistic Forecast for Lithia Motors (NYSE:LAD) Stock Price

Key Points

• Wells Fargo & Company has lowered its price target for Lithia Motors from $364.00 to $317.00, maintaining an "equal weight" rating, which indicates a potential upside of 8.33% from the current stock price.
• Other firms, including JPMorgan Chase & Co. and Guggenheim, have also adjusted their price targets for Lithia Motors, with ratings ranging from "buy" to "neutral."
• Lithia Motors reported an EPS of $10.24 for the last quarter, surpassing analyst estimates of $8.53, with total revenue reaching $9.58 billion.

Lithia Motors (NYSE:LAD - Free Report) had its price objective cut by Wells Fargo & Company from $364.00 to $317.00 in a report released on Wednesday morning,Benzinga reports. They currently have an equal weight rating on the stock.

LAD has been the subject of several other reports. Bank of America boosted their price objective on Lithia Motors from $430.00 to $500.00 and gave the stock a "buy" rating in a research report on Monday, June 16th. Citigroup upgraded Lithia Motors from a "neutral" rating to a "buy" rating and cut their target price for the stock from $415.00 to $375.00 in a research report on Wednesday, April 23rd. JPMorgan Chase & Co. cut their target price on Lithia Motors from $345.00 to $335.00 and set an "overweight" rating for the company in a research report on Wednesday, July 16th. The Goldman Sachs Group started coverage on Lithia Motors in a research report on Tuesday, June 3rd. They issued a "neutral" rating and a $340.00 target price for the company. Finally, Guggenheim cut their target price on Lithia Motors from $417.00 to $356.00 and set a "buy" rating for the company in a research report on Tuesday, April 22nd. Four analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $377.80.

Lithia Motors Stock Performance

Shares of NYSE LAD traded down $0.49 during midday trading on Wednesday, hitting $287.52. 79,376 shares of the company's stock were exchanged, compared to its average volume of 338,805. The company has a debt-to-equity ratio of 1.24, a current ratio of 1.22 and a quick ratio of 0.31. The stock's 50 day moving average price is $325.91 and its 200-day moving average price is $323.62. The firm has a market cap of $7.48 billion, a P/E ratio of 8.52, a PEG ratio of 0.44 and a beta of 1.46. Lithia Motors has a twelve month low of $255.32 and a twelve month high of $405.67.

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 (EPS) for the quarter, topping the consensus estimate of $9.78 by $0.46. The business had revenue of $9.58 billion during the quarter, compared to the consensus estimate of $9.56 billion. Lithia Motors had a return on equity of 13.21% and a net margin of 2.39%. Equities research analysts anticipate that Lithia Motors will post 34.45 EPS for the current year.

Lithia Motors Dividend Announcement

The business also recently disclosed 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 is Friday, August 8th. Lithia Motors's dividend payout ratio is 6.52%.

Insider Activity at Lithia Motors

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

Institutional Investors Weigh In On Lithia Motors

A number of institutional investors and hedge funds have recently modified their holdings of the stock. LPL Financial LLC raised its stake in Lithia Motors by 14.2% during the 4th quarter. LPL Financial LLC now owns 4,049 shares of the company's stock valued at $1,447,000 after purchasing an additional 503 shares during the period. Pictet Asset Management Holding SA raised its stake in Lithia Motors by 8.1% during the 4th quarter. Pictet Asset Management Holding SA now owns 3,917 shares of the company's stock valued at $1,400,000 after purchasing an additional 293 shares during the period. Brandywine Global Investment Management LLC raised its stake in Lithia Motors by 96.1% during the 4th quarter. Brandywine Global Investment Management LLC now owns 16,408 shares of the company's stock valued at $5,865,000 after purchasing an additional 8,041 shares during the period. O Shaughnessy Asset Management LLC raised its stake in Lithia Motors by 30.5% during the 4th quarter. O Shaughnessy Asset Management LLC now owns 1,580 shares of the company's stock valued at $565,000 after purchasing an additional 369 shares during the period. Finally, Wellington Management Group LLP raised its stake in Lithia Motors by 9.7% during the 4th quarter. Wellington Management Group LLP now owns 10,528 shares of the company's stock valued at $3,763,000 after purchasing an additional 930 shares during the period.

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.