Lithia Motors (NYSE:LAD) Stock Rating Lowered by Weiss Ratings

Key Points

• Lithia Motors has been downgraded by Weiss Ratings from a "buy (b-)" to a "hold (c+)" rating, reflecting changing analyst sentiment towards the stock.
• Bank of America and Wells Fargo both reduced their price targets for Lithia Motors, with Bank of America lowering it from $500 to $385, while Wells Fargo cut it from $364 to $317.
• The company recently approved a share buyback plan allowing it to repurchase up to $750 million of its stock, which typically indicates a belief that shares are undervalued.

Lithia Motors (NYSE:LAD - Get Free Report) was downgraded by stock analysts at Weiss Ratings from a "buy (b-)" rating to a "hold (c+)" rating in a report released on Wednesday,Weiss Ratings reports.

Several other equities analysts have also recently commented on the company. Bank of America cut their price target on Lithia Motors from $500.00 to $385.00 and set a "buy" rating for the company in a report on Wednesday, September 10th. Wells Fargo & Company cut their price target on Lithia Motors from $364.00 to $317.00 and set an "equal weight" rating for the company in a report on Wednesday, July 30th. Citigroup upped their price target on Lithia Motors from $378.00 to $383.00 and gave the company a "buy" rating in a report on Tuesday, August 5th. Jefferies Financial Group assumed coverage on Lithia Motors in a report on Thursday, September 4th. They issued a "buy" rating and a $400.00 price target for the company. Finally, JPMorgan Chase & Co. cut their price target on Lithia Motors from $335.00 to $315.00 and set an "overweight" rating for the company in a report on Tuesday, August 5th. Eight equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Lithia Motors currently has a consensus rating of "Moderate Buy" and a consensus price target of $376.50.

Lithia Motors Stock Performance

LAD opened at $301.41 on Wednesday. The stock has a 50-day moving average of $319.85 and a 200-day moving average of $315.35. Lithia Motors has a 52-week low of $262.10 and a 52-week high of $405.67. The company has a market cap of $7.73 billion, a PE ratio of 8.94, a price-to-earnings-growth ratio of 0.61 and a beta of 1.28. The company has a debt-to-equity ratio of 1.24, a quick ratio of 0.29 and a current ratio of 1.22.

Lithia Motors (NYSE:LAD - Get Free Report) last announced its earnings results on Tuesday, July 29th. The company reported $10.24 earnings per share for the quarter, beating the consensus estimate of $9.78 by $0.46. Lithia Motors had a return on equity of 13.21% and a net margin of 2.39%.The firm had revenue of $9.58 billion during the quarter, compared to the consensus estimate of $9.56 billion. As a group, equities research analysts forecast that Lithia Motors will post 34.45 earnings per share for the current fiscal year.

Lithia Motors declared that its Board of Directors has approved a share buyback plan on Tuesday, August 26th that permits the company to repurchase $750.00 million in outstanding shares. This repurchase authorization permits the company to purchase up to 9% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's board believes its shares are undervalued.

Insider Buying and Selling

In other Lithia Motors 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 value of $75,020.80. Following the transaction, the director directly owned 1,376 shares in the company, valued at approximately $403,236.80. This trade represents a 15.69% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 0.87% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of LAD. Bessemer Group Inc. boosted its position in Lithia Motors by 114.6% in the 2nd quarter. Bessemer Group Inc. now owns 88 shares of the company's stock valued at $29,000 after buying an additional 47 shares during the last quarter. Hantz Financial Services Inc. boosted its position in Lithia Motors by 1,383.3% in the 2nd quarter. Hantz Financial Services Inc. now owns 89 shares of the company's stock valued at $30,000 after buying an additional 83 shares during the last quarter. Parallel Advisors LLC boosted its position in Lithia Motors by 106.2% in the 2nd quarter. Parallel Advisors LLC now owns 134 shares of the company's stock valued at $45,000 after buying an additional 69 shares during the last quarter. eCIO Inc. bought a new position in shares of Lithia Motors in the 1st quarter worth $55,000. Finally, NBC Securities Inc. bought a new position in shares of Lithia Motors in the 1st quarter worth $59,000.

About Lithia Motors

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.

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