Zacks Research Lowers Earnings Estimates for Lithia Motors

Key Points

• Zacks Research has lowered its forecast for Lithia Motors' FY2026 earnings per share (EPS) from $35.50 to $35.41, which is still above the consensus estimate of $34.45.
• Multiple analysts have varying ratings for Lithia Motors, with Citigroup raising its price target to $383.00 and JPMorgan Chase lowering its target to $315.00, while the overall consensus rating remains a "Moderate Buy."
• Lithia Motors declared a quarterly dividend of $0.55 per share, with an annualized yield of 0.7%, to be paid on August 22nd to shareholders of record.

Lithia Motors, Inc. (NYSE:LAD - Free Report) - Research analysts at Zacks Research dropped their FY2026 EPS estimates for Lithia Motors in a research report issued on Tuesday, August 12th. Zacks Research analyst R. Department now forecasts that the company will post earnings per share of $35.41 for the year, down from their prior forecast of $35.50. The consensus estimate for Lithia Motors' current full-year earnings is $34.45 per share.

A number of other equities analysts also recently weighed in on the stock. The Goldman Sachs Group started coverage on shares of Lithia Motors in a report on Tuesday, June 3rd. They set a "neutral" rating and a $340.00 target price on the stock. Citigroup lifted their price objective on shares of Lithia Motors from $378.00 to $383.00 and gave the stock a "buy" rating in a research report on Tuesday, August 5th. Guggenheim dropped 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. JPMorgan Chase & Co. dropped their price target on Lithia Motors from $335.00 to $315.00 and set an "overweight" rating for the company in a research note on Tuesday, August 5th. Finally, Bank of America boosted their price target on Lithia Motors from $430.00 to $500.00 and gave the company a "buy" rating in a research note on Monday, June 16th. Four equities research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $379.00.

Lithia Motors Price Performance

Shares of LAD opened at $302.20 on Wednesday. The company has a market cap of $7.75 billion, a price-to-earnings ratio of 8.97, a PEG ratio of 0.45 and a beta of 1.30. Lithia Motors has a 1-year low of $255.32 and a 1-year high of $405.67. The company's fifty day simple moving average is $322.51 and its 200 day simple moving average is $320.16. 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 issued its earnings results on Tuesday, July 29th. The company reported $10.24 earnings per share for the quarter, topping analysts' consensus estimates of $9.78 by $0.46. The business had revenue of $9.58 billion for the quarter, compared to the consensus estimate of $9.56 billion. Lithia Motors had a net margin of 2.39% and a return on equity of 13.21%.

Hedge Funds Weigh In On Lithia Motors

Several large investors have recently bought and sold shares of the stock. Vident Advisory LLC lifted its stake in Lithia Motors by 4.3% during the 4th quarter. Vident Advisory LLC now owns 780 shares of the company's stock valued at $279,000 after acquiring an additional 32 shares in the last quarter. Cambridge Investment Research Advisors Inc. increased its position in shares of Lithia Motors by 1.5% during the 1st quarter. Cambridge Investment Research Advisors Inc. now owns 2,421 shares of the company's stock valued at $711,000 after purchasing an additional 35 shares during the last quarter. Benjamin Edwards Inc. increased its position in shares of Lithia Motors by 5.6% during the 4th quarter. Benjamin Edwards Inc. now owns 700 shares of the company's stock valued at $250,000 after purchasing an additional 37 shares during the last quarter. Nisa Investment Advisors LLC increased its position in shares of Lithia Motors by 16.9% during the 2nd quarter. Nisa Investment Advisors LLC now owns 276 shares of the company's stock valued at $93,000 after purchasing an additional 40 shares during the last quarter. Finally, Mariner LLC increased its position in shares of Lithia Motors by 2.9% during the 4th quarter. Mariner LLC now owns 1,475 shares of the company's stock valued at $527,000 after purchasing an additional 42 shares during the last quarter.

Insider Activity

In related 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 $403,236.80. This trade represents a 15.69% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Insiders own 0.87% of the company's stock.

Lithia Motors Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, August 22nd. Shareholders of record on Friday, August 8th will be issued a dividend of $0.55 per share. This represents a $2.20 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date is Friday, August 8th. Lithia Motors's dividend payout ratio is presently 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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