Lithia Motors (NYSE:LAD) has seen its target price increased from $327.00 to $358.00 by Wells Fargo & Company, according to a report released on Monday morning. The brokerage maintains an equal weight rating on the stock, reflecting a cautious yet optimistic outlook amidst recent shifts in analyst ratings.
Analysts from other firms have also recently adjusted their outlooks for Lithia Motors. On October 14, JPMorgan Chase & Co. upgraded their target price from $320.00 to $350.00, assigning an “overweight” rating. Following this, on November 12, Barclays initiated coverage with an “overweight” rating and set a price target of $410.00. Conversely, on October 8, Weiss Ratings downgraded the stock from a “buy (b-)” to a “hold (c+).” In a separate note on October 23, Benchmark reaffirmed a “buy” rating for Lithia Motors, while Citigroup raised their price target from $385.00 to $399.00 on October 28.
Overall, one analyst has issued a Strong Buy rating, seven have rated it as Buy, and three have assigned a Hold rating. According to data from MarketBeat.com, Lithia Motors currently holds an average rating of “Moderate Buy” with an average target price of $392.20.
Financial Performance and Market Position
On October 22, Lithia Motors reported impressive quarterly earnings, revealing $9.50 earnings per share (EPS) for the quarter, surpassing analysts’ expectations of $8.53 by $0.97. The company also reported revenue of $9.68 billion, exceeding the consensus estimate of $9.38 billion. This marks a 4.9% increase in quarterly revenue compared to the same period last year.
Lithia Motors has a market capitalization of $8.02 billion, with a price-to-earnings ratio of 9.58. The stock opened at $330.89 on Monday, with a one-year low of $262.10 and a one-year high of $405.14. The company’s 50-day and 200-day moving averages stand at $322.44 and $321.47, respectively.
The company also declared a quarterly dividend of $0.55 per share, which was paid on November 21. Shareholders of record as of November 7 received this dividend, translating to an annualized dividend of $2.20 and a yield of 0.7%. The company’s dividend payout ratio is currently 6.37%.
Insider Activity and Institutional Investments
In related news, Lithia Motors’ Director, Congdon Stacy Loretz, sold 75 shares on December 12 for an average price of $360.00, totaling $27,000.00. Following the sale, Loretz holds 1,810 shares valued at approximately $651,600, a decrease of 3.98% in their holdings. This transaction was disclosed through a filing with the Securities and Exchange Commission.
Institutional investors have also shown interest in Lithia Motors. AGP Franklin LLC raised its stake by 0.3% during the third quarter, now owning 10,459 shares valued at $3.3 million. Similarly, Arizona State Retirement System increased its holdings by 0.4%, now holding 7,702 shares worth $2.43 million. Other firms, like GAMMA Investing LLC and M&T Bank Corp, have also adjusted their positions.
Lithia Motors, headquartered in Medford, Oregon, has grown since its founding in 1946 into one of North America’s largest automotive retail networks. The company operates dealerships across the United States and Canada, offering a wide range of new and pre-owned vehicles from over 40 manufacturers.
