Wells Fargo & Company Increases Lithia Motors (NYSE:LAD) Price Target to $327.00

Key Points

• Wells Fargo & Company has increased Lithia Motors' price target from $317.00 to $327.00, indicating a potential upside of 5.48% from its previous close.
• Despite the price target increase, Weiss Ratings downgraded Lithia Motors from a "buy" to a "hold" rating, while other analysts have varied opinions, with targets ranging from $350.00 to $400.00.
• Lithia Motors recently announced a stock repurchase plan authorizing the company to buy back up to $750 million of its outstanding shares, reflecting management's belief in the undervaluation of the stock.

Lithia Motors (NYSE:LAD - Get Free Report) had its price objective boosted by stock analysts at Wells Fargo & Company from $317.00 to $327.00 in a report issued on Wednesday,Benzinga reports. The brokerage presently has an "equal weight" rating on the stock. Wells Fargo & Company's price objective indicates a potential upside of 5.48% from the company's previous close.

A number of other research analysts also recently issued reports on LAD. Weiss Ratings downgraded Lithia Motors from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday, October 8th. JPMorgan Chase & Co. upped their price objective on Lithia Motors from $320.00 to $350.00 and gave the company an "overweight" rating in a research note on Tuesday. Jefferies Financial Group assumed coverage on Lithia Motors in a research note on Thursday, September 4th. They issued a "buy" rating and a $400.00 price objective for 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 research note on Wednesday, September 10th. Finally, Guggenheim cut their price target on Lithia Motors from $383.00 to $380.00 and set a "buy" rating for the company in a research note on Monday, August 11th. Eight analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $381.00.

Lithia Motors Stock Down 0.5%

Lithia Motors stock traded down $1.66 during trading on Wednesday, hitting $310.01. 49,584 shares of the company were exchanged, compared to its average volume of 326,696. The business's 50 day moving average is $321.02 and its 200 day moving average is $315.36. Lithia Motors has a 52 week low of $262.10 and a 52 week high of $405.67. The company has a market capitalization of $7.95 billion, a P/E ratio of 9.20, a PEG ratio of 0.61 and a beta of 1.28. The company has a current ratio of 1.22, a quick ratio of 0.29 and a debt-to-equity ratio of 1.24.

Lithia Motors (NYSE:LAD - Get Free Report) last announced its quarterly earnings results 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. Lithia Motors had a return on equity of 13.21% and a net margin of 2.39%.The business had revenue of $9.58 billion during the quarter, compared to the consensus estimate of $9.56 billion. Analysts predict that Lithia Motors will post 34.45 earnings per share for the current year.

Lithia Motors announced that its board has authorized a stock repurchase plan on Tuesday, August 26th that allows the company to repurchase $750.00 million in outstanding shares. This repurchase authorization allows the company to reacquire up to 9% of its shares through open market purchases. Shares repurchase plans are often an indication that the company's leadership believes its stock is undervalued.

Insider Buying and Selling at Lithia Motors

In other Lithia Motors news, Director Shauna Mcintyre sold 256 shares of the firm's stock in a transaction dated Thursday, July 31st. The stock was sold at an average price of $293.05, for a total value of $75,020.80. Following the sale, the director owned 1,376 shares of the company's stock, valued at $403,236.80. This trade represents a 15.69% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 0.87% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Lithia Motors

Several institutional investors have recently modified their holdings of LAD. Bessemer Group Inc. increased its position in shares of Lithia Motors by 114.6% during the 2nd quarter. Bessemer Group Inc. now owns 88 shares of the company's stock valued at $29,000 after purchasing an additional 47 shares during the last quarter. Hantz Financial Services Inc. grew its position in Lithia Motors by 1,383.3% during the 2nd quarter. Hantz Financial Services Inc. now owns 89 shares of the company's stock worth $30,000 after acquiring an additional 83 shares during the last quarter. Parallel Advisors LLC grew its position in Lithia Motors by 106.2% during the 2nd quarter. Parallel Advisors LLC now owns 134 shares of the company's stock worth $45,000 after acquiring an additional 69 shares during the last quarter. eCIO Inc. bought a new position in Lithia Motors during the 1st quarter worth approximately $55,000. Finally, CWM LLC grew its position in Lithia Motors by 30.1% during the 1st quarter. CWM LLC now owns 212 shares of the company's stock worth $62,000 after acquiring an additional 49 shares during the last quarter.

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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