Lithia Motors Q3 EPS Forecast Increased by Zacks Research

Key Points

• Zacks Research raised its Q3 2025 earnings estimate for Lithia Motors to $8.88 per share, up from the previous estimate of $8.79.
• The company's Board of Directors has initiated a $750 million stock buyback plan, indicating confidence in the underappreciated value of its shares.
• Lithia Motors' recent quarterly earnings report showed a net margin of 2.39% and revenue of $9.58 billion, exceeding consensus estimates.

Lithia Motors, Inc. (NYSE:LAD - Free Report) - Investment analysts at Zacks Research upped their Q3 2025 earnings estimates for shares of Lithia Motors in a research note issued on Monday, September 22nd. Zacks Research analyst Team now anticipates that the company will post earnings of $8.88 per share for the quarter, up from their prior estimate of $8.79. The consensus estimate for Lithia Motors' current full-year earnings is $34.45 per share. Zacks Research also issued estimates for Lithia Motors' Q1 2026 earnings at $7.88 EPS, Q3 2026 earnings at $10.07 EPS and Q1 2027 earnings at $9.53 EPS.

Several other analysts have also issued reports on LAD. The Goldman Sachs Group began coverage on shares of Lithia Motors in a research report on Tuesday, June 3rd. They set a "neutral" rating and a $340.00 price target for the company. Wells Fargo & Company cut their price target on shares of Lithia Motors from $364.00 to $317.00 and set an "equal weight" rating for the company in a research report on Wednesday, July 30th. Jefferies Financial Group began coverage on shares of Lithia Motors in a research report on Thursday, September 4th. They set a "buy" rating and a $400.00 price target for the company. JPMorgan Chase & Co. cut their price target on shares of Lithia Motors from $335.00 to $315.00 and set an "overweight" rating for the company in a research report on Tuesday, August 5th. Finally, Bank of America cut their price target on shares of Lithia Motors from $500.00 to $385.00 and set a "buy" rating for the company in a research report on Wednesday, September 10th. Eight investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $370.45.

Lithia Motors Stock Performance

NYSE LAD opened at $334.73 on Wednesday. The company has a 50-day simple moving average of $317.94 and a two-hundred day simple moving average of $314.01. The company has a quick ratio of 0.29, a current ratio of 1.22 and a debt-to-equity ratio of 1.24. Lithia Motors has a 12-month low of $262.10 and a 12-month high of $405.67. The firm has a market cap of $8.58 billion, a price-to-earnings ratio of 9.92, a PEG ratio of 0.67 and a beta of 1.31.

Lithia Motors (NYSE:LAD - Get Free Report) last posted its quarterly earnings results on Tuesday, July 29th. The company reported $10.24 earnings per share for the quarter, topping the consensus estimate of $9.78 by $0.46. Lithia Motors had a net margin of 2.39% and a return on equity of 13.21%. The business had revenue of $9.58 billion during the quarter, compared to the consensus estimate of $9.56 billion.

Hedge Funds Weigh In On Lithia Motors

Several hedge funds and other institutional investors have recently modified their holdings of LAD. Coppell Advisory Solutions LLC increased its position in shares of Lithia Motors by 10,136,710.0% during the first quarter. Coppell Advisory Solutions LLC now owns 2,027,362 shares of the company's stock valued at $595,112,000 after buying an additional 2,027,342 shares during the period. Norges Bank purchased a new position in shares of Lithia Motors during the second quarter valued at about $148,540,000. Park West Asset Management LLC purchased a new position in shares of Lithia Motors during the first quarter valued at about $58,825,000. Millennium Management LLC increased its position in shares of Lithia Motors by 1,840.6% during the first quarter. Millennium Management LLC now owns 181,777 shares of the company's stock valued at $53,359,000 after buying an additional 172,410 shares during the period. Finally, Assenagon Asset Management S.A. purchased a new position in shares of Lithia Motors during the first quarter valued at about $36,762,000.

Insider Activity at Lithia Motors

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

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

Lithia Motors Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 22nd. Stockholders of record on Friday, August 8th were paid a dividend of $0.55 per share. This represents a $2.20 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend was Friday, August 8th. Lithia Motors's dividend payout ratio is 6.52%.

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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