Wells Fargo & Company Lowers Lithia Motors (NYSE:LAD) Price Target to $293.00

Key Points

• Wells Fargo cut Lithia Motors' price target from $355 to $293 and maintained an "equal weight" rating, implying roughly an 8.8% upside from the prior close.
• Analyst views are mixed — six Buys, five Holds and one Sell — giving a MarketBeat consensus rating of "Hold" with a consensus price target of $369.89.
• Lithia reported a quarterly EPS miss ($6.74 vs. $8.09) with revenue essentially flat year-over-year; shares opened at $269.34 (down ~1.4%) and trade within a one‑year range of $239.78–$360.55.

Lithia Motors (NYSE:LAD - Get Free Report) had its price target reduced by analysts at Wells Fargo & Company from $355.00 to $293.00 in a research report issued on Monday,Benzinga reports. The firm currently has an "equal weight" rating on the stock. Wells Fargo & Company's price objective would suggest a potential upside of 8.78% from the stock's previous close.

LAD has been the topic of several other reports. JPMorgan Chase & Co. cut Lithia Motors from an "overweight" rating to a "neutral" rating and set a $335.00 price target on the stock. in a research report on Friday, February 20th. Zacks Research cut Lithia Motors from a "hold" rating to a "strong sell" rating in a research report on Wednesday, March 25th. Bank of America began coverage on Lithia Motors in a research report on Wednesday, March 4th. They issued a "neutral" rating for the company. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Lithia Motors in a research report on Thursday, January 22nd. Finally, Citigroup reduced their price target on Lithia Motors from $366.00 to $326.00 and set a "buy" rating for the company in a research report on Wednesday, April 8th. Six analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $369.89.

Lithia Motors Trading Down 1.4%

Shares of LAD opened at $269.34 on Monday. The company has a market capitalization of $6.30 billion, a P/E ratio of 8.40, a P/E/G ratio of 0.65 and a beta of 1.22. Lithia Motors has a one year low of $239.78 and a one year high of $360.55. The company has a debt-to-equity ratio of 1.46, a quick ratio of 0.26 and a current ratio of 1.17. The stock has a 50-day moving average price of $277.88 and a 200 day moving average price of $305.76.

Lithia Motors (NYSE:LAD - Get Free Report) last issued its quarterly earnings results on Wednesday, February 11th. The company reported $6.74 EPS for the quarter, missing analysts' consensus estimates of $8.09 by ($1.35). The business had revenue of $9.20 billion during the quarter, compared to analysts' expectations of $9.19 billion. Lithia Motors had a net margin of 2.18% and a return on equity of 12.76%. The company's revenue for the quarter was up .3% on a year-over-year basis. During the same period in the prior year, the company posted $7.79 EPS. Sell-side analysts forecast that Lithia Motors will post 34.45 EPS for the current fiscal year.

Hedge Funds Weigh In On Lithia Motors

Several large investors have recently made changes to their positions in LAD. Norges Bank acquired a new position in shares of Lithia Motors during the 4th quarter worth about $125,214,000. River Road Asset Management LLC increased its stake in Lithia Motors by 33.6% during the fourth quarter. River Road Asset Management LLC now owns 742,677 shares of the company's stock valued at $246,814,000 after acquiring an additional 186,628 shares during the period. Life Cycle Investment Partners Ltd acquired a new position in Lithia Motors in the 4th quarter valued at approximately $58,409,000. Hennessy Advisors Inc. acquired a new position in Lithia Motors in the 3rd quarter valued at approximately $39,342,000. Finally, Corient Private Wealth LLC raised its holdings in Lithia Motors by 8,474.0% in the 4th quarter. Corient Private Wealth LLC now owns 107,690 shares of the company's stock valued at $35,789,000 after acquiring an additional 106,434 shares in the last quarter.

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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