Lithia Motors (NYSE:LAD) Stock Price Expected to Rise, JPMorgan Chase & Co. Analyst Says

Key Points

• JPMorgan raised Lithia Motors’ price target to $340 from $325 but maintained a “neutral” rating, implying roughly 8.3% downside from the prior close.
• Analyst sentiment remains broadly positive, with seven Buy and five Hold ratings and a consensus price target of $425.20. Lithia also reported quarterly EPS of $10.03, beating estimates of $8.73, while revenue rose 2.2% year over year to $9.79 billion.
• The company authorized a $500 million share-repurchase program, allowing buybacks of up to 7.9% of outstanding shares; LAD shares nevertheless fell 1.9% in Tuesday trading to $370.89.

Lithia Motors (NYSE:LAD - Get Free Report) had its price objective upped by investment analysts at JPMorgan Chase & Co. from $325.00 to $340.00 in a note issued to investors on Tuesday,Benzinga reports. The brokerage presently has a "neutral" rating on the stock. JPMorgan Chase & Co.'s price target would indicate a potential downside of 8.33% from the stock's previous close.

Other equities research analysts have also issued research reports about the stock. Weiss Ratings upgraded shares of Lithia Motors from a "hold (c-)" rating to a "hold (c)" rating in a report on Tuesday, July 21st. Jefferies Financial Group reaffirmed a "buy" rating and set a $490.00 target price on shares of Lithia Motors in a research report on Thursday, July 30th. Zacks Research raised shares of Lithia Motors from a "strong sell" rating to a "hold" rating in a research note on Thursday, April 23rd. UBS Group lowered Lithia Motors from a "buy" rating to a "neutral" rating and boosted their price target for the company from $370.00 to $440.00 in a report on Thursday, July 30th. Finally, Wall Street Zen raised Lithia Motors from a "sell" rating to a "hold" rating in a research note on Saturday. Seven investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $425.20.

Lithia Motors Trading Down 1.9%

Shares of NYSE:LAD traded down $7.02 during trading hours on Tuesday, hitting $370.89. 182,057 shares of the company's stock traded hands, compared to its average volume of 323,209. The firm has a market capitalization of $8.46 billion, a P/E ratio of 12.32, a price-to-earnings-growth ratio of 0.84 and a beta of 1.22. The business has a fifty day moving average price of $315.79 and a 200-day moving average price of $296.06. Lithia Motors has a 1 year low of $239.78 and a 1 year high of $439.49. The company has a debt-to-equity ratio of 1.46, a current ratio of 1.00 and a quick ratio of 0.21.

Lithia Motors (NYSE:LAD - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The company reported $10.03 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $8.73 by $1.30. Lithia Motors had a return on equity of 12.16% and a net margin of 1.88%.The company had revenue of $9.79 billion during the quarter, compared to analysts' expectations of $9.64 billion. During the same quarter in the previous year, the business earned $10.24 EPS. Lithia Motors's revenue was up 2.2% compared to the same quarter last year. Equities analysts expect that Lithia Motors will post 34.9 earnings per share for the current year.

Lithia Motors declared that its board has approved a share repurchase plan on Tuesday, May 26th that allows the company to buyback $500.00 million in outstanding shares. This buyback authorization allows the company to buy up to 7.9% of its shares through open market purchases. Shares buyback plans are often a sign that the company's board believes its stock is undervalued.

Insider Activity

In other news, Director Shauna Mcintyre sold 165 shares of the company's stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $305.64, for a total value of $50,430.60. Following the completion of the sale, the director owned 1,681 shares of the company's stock, valued at approximately $513,780.84. This represents a 8.94% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Richard J. Bailey, Jr. sold 297 shares of the stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $280.57, for a total transaction of $83,329.29. Following the transaction, the director owned 760 shares in the company, valued at approximately $213,233.20. This represents a 28.10% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 782 shares of company stock valued at $229,572. Company insiders own 1.08% of the company's stock.

Institutional Trading of Lithia Motors

Several hedge funds and other institutional investors have recently bought and sold shares of LAD. Hennion & Walsh Asset Management Inc. increased its holdings in shares of Lithia Motors by 18.6% in the 2nd quarter. Hennion & Walsh Asset Management Inc. now owns 2,075 shares of the company's stock valued at $603,000 after acquiring an additional 325 shares during the period. Crumly & Associates Inc. lifted its stake in shares of Lithia Motors by 3.6% during the 2nd quarter. Crumly & Associates Inc. now owns 1,246 shares of the company's stock worth $362,000 after purchasing an additional 43 shares during the last quarter. Red Spruce Capital LLC boosted its position in Lithia Motors by 3.2% during the second quarter. Red Spruce Capital LLC now owns 9,348 shares of the company's stock valued at $2,716,000 after purchasing an additional 288 shares in the last quarter. 180 Wealth Advisors LLC grew its stake in Lithia Motors by 3.7% in the second quarter. 180 Wealth Advisors LLC now owns 9,116 shares of the company's stock valued at $2,648,000 after purchasing an additional 328 shares during the last quarter. Finally, GAMMA Investing LLC grew its stake in Lithia Motors by 32.1% in the second quarter. GAMMA Investing LLC now owns 173 shares of the company's stock valued at $50,000 after purchasing an additional 42 shares during the last quarter.

Lithia Motors Company Profile

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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