Lithia Motors (NYSE:LAD) Price Target Raised to $395.00

Key Points

• Wells Fargo raised Lithia Motors’ price target to $395 from $306 while maintaining an “equal weight” rating, implying about 2.25% downside from the prior close. Analysts overall hold a “Moderate Buy” consensus with an average target of $408.
• Lithia exceeded quarterly expectations, reporting $10.03 in adjusted EPS versus $8.73 expected and revenue of $9.79 billion versus $9.64 billion forecast; revenue increased 2.2% year over year.
• The company is returning capital through a $500 million share-repurchase authorization covering up to 7.9% of shares, while insiders have recently sold stock and the shares have traded near their 52-week high.

Lithia Motors (NYSE:LAD - Get Free Report) had its target price boosted by equities research analysts at Wells Fargo & Company from $306.00 to $395.00 in a report issued on Thursday,Benzinga reports. The brokerage currently has an "equal weight" rating on the stock. Wells Fargo & Company's target price would suggest a potential downside of 2.25% from the stock's previous close.

LAD has been the topic of a number of other reports. Zacks Research raised shares of Lithia Motors from a "strong sell" rating to a "hold" rating in a research report on Thursday, April 23rd. Bank of America raised their target price on shares of Lithia Motors from $350.00 to $417.00 and gave the company a "buy" rating in a research note on Thursday, July 9th. Barclays cut their price target on Lithia Motors from $370.00 to $360.00 and set an "overweight" rating on the stock in a research note on Wednesday, July 15th. UBS Group cut Lithia Motors from a "buy" rating to a "neutral" rating and increased their target price for the stock from $370.00 to $440.00 in a research note on Thursday. Finally, Wall Street Zen lowered Lithia Motors from a "hold" rating to a "sell" rating in a research report on Monday, July 20th. Seven investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $408.00.

Lithia Motors Trading Down 5.5%

LAD opened at $404.11 on Thursday. The company has a quick ratio of 0.24, a current ratio of 0.99 and a debt-to-equity ratio of 1.41. Lithia Motors has a 52 week low of $239.78 and a 52 week high of $439.49. The stock has a market cap of $9.22 billion, a PE ratio of 14.65, a PEG ratio of 0.84 and a beta of 1.26. The business has a 50 day moving average of $308.92 and a 200-day moving average of $294.90.

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

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

Insiders Place Their Bets

In other news, Director Shauna Mcintyre sold 245 shares of the company's stock in a transaction on Monday, May 11th. The stock was sold at an average price of $294.64, for a total transaction of $72,186.80. Following the transaction, the director directly owned 1,846 shares of the company's stock, valued at $543,905.44. This represents a 11.72% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Richard J. Bailey, Jr. sold 297 shares of Lithia Motors stock in a transaction dated 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. The trade was a 28.10% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 782 shares of company stock worth $229,572. Corporate insiders own 1.08% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in LAD. Norges Bank bought a new stake in Lithia Motors in the 4th quarter worth approximately $125,214,000. River Road Asset Management LLC lifted its holdings in shares of Lithia Motors by 33.6% during the 4th quarter. River Road Asset Management LLC now owns 742,677 shares of the company's stock valued at $246,814,000 after buying an additional 186,628 shares during the period. Life Cycle Investment Partners Ltd purchased a new position in shares of Lithia Motors in the 4th quarter worth $58,409,000. Corient Private Wealth LLC grew its holdings in shares of Lithia Motors by 8,474.0% in the fourth quarter. Corient Private Wealth LLC now owns 107,690 shares of the company's stock worth $35,789,000 after acquiring an additional 106,434 shares during the period. Finally, Marshall Wace LLP grew its holdings in shares of Lithia Motors by 183.6% in the fourth quarter. Marshall Wace LLP now owns 162,937 shares of the company's stock worth $54,149,000 after acquiring an additional 105,478 shares during the period.

Key Lithia Motors News

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

• Positive Sentiment: Quarterly results exceeded expectations. Lithia reported $9.79 billion in revenue, up 2.2% year over year and above the $9.64 billion consensus estimate. Adjusted EPS was $10.03 versus an estimated $8.73, while reported diluted EPS rose 17% to $11.54. Lithia & Driveway Second-Quarter Results
• Positive Sentiment: Operating metrics improved. Used-vehicle retail gross profit per unit increased 20% sequentially, aftersales gross margin reached 59.2%, and adjusted selling, general and administrative expenses improved as a percentage of gross profit. Financing operations also delivered record income of $37 million and record originations of $884 million. Q2 2026 Earnings Call Highlights
• Positive Sentiment: Capital returns were increased. Lithia raised its quarterly dividend 22.8% to $0.70 per share, payable August 21 to shareholders of record August 7, and repurchased $242 million of stock during the quarter. Lithia Dividend and Analyst Coverage
• Positive Sentiment: Analyst sentiment remains favorable. Brokerages’ consensus recommendation is “Moderate Buy,” and the earnings report pushed LAD to a record or 52-week high. Lithia Motors Stock Reaches Record High
• Neutral Sentiment: Valuation is a potential constraint. One analysis argues LAD could be approximately 15% above fair value following the earnings rally, suggesting investors may already be pricing in much of the improvement. Lithia Motors Fair-Value Analysis
• Negative Sentiment: Broader market conditions remain unfavorable. A sharp oil-price rise tied to U.S.-Iran tensions pressured major equity indexes ahead of the Federal Reserve’s decision, creating a potential headwind for economically sensitive auto-retailing stocks. Market Sell-Off and Oil Surge

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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