Lithia Motors, Inc. (NYSE:LAD) Receives Moderate Buy Rating from Analysts

Shares of Lithia Motors, Inc. (NYSE:LAD) have received an average recommendation of "Moderate Buy" from eleven research firms currently monitoring the company, according to ratings from Marketbeat. Out of these analysts, four have given the stock a hold recommendation, while seven others have a buy recommendation. The average target price for the stock among these brokerages is set at $371.36 for the upcoming year.

The stock of Lithia Motors has been highlighted in multiple analyst reports recently. For instance, StockNews.com upgraded Lithia Motors from a "sell" rating to a "hold" rating in a report dated January 14th. Furthermore, JPMorgan Chase & Co. increased their price target for Lithia Motors shares from $400.00 to $420.00 and rated the stock as "overweight" in a report dated February 19th. Benchmark maintained a "buy" rating with a price target of $400.00 on February 20th. Evercore ISI also raised their price target from $400.00 to $440.00, offering an "outperform" rating on February 18th, while Guggenheim increased their target from $380.00 to $418.00, giving a "buy" recommendation on November 21st.

Lithia Motors Stock Performance

Lithia Motors stock opened at $295.39 on a recent Monday morning. The company has a market capitalization of $7.76 billion, a price-to-earnings ratio standing at 9.95, a PEG ratio of 4.65, and a beta of 1.69. Its 50-day moving average is $349.24, while the 200-day moving average is $341.83. The company reports a quick ratio of 0.28, a current ratio of 1.19, and a debt-to-equity ratio of 1.22. Lithia Motors has experienced a 52-week low of $243.00 and a high of $405.68.

Lithia Motors announced its quarterly earnings results on February 12th. The company reported earnings per share (EPS) of $7.79 for the quarter, exceeding analysts' expectations of $7.33 by $0.46. Lithia Motors recorded a net margin of 2.21% and a return on equity of 12.43%. Analysts expect the company to generate an EPS of 34.45 for the current fiscal year on average.

Lithia Motors Dividend Announcement

The company has also recently declared a quarterly dividend, which is scheduled to be paid on March 21st. Investors on record as of March 7th will receive a dividend of $0.53 per share. The ex-dividend date was also March 7th. This equates to an annualized dividend of $2.12, yielding 0.72%. Currently, Lithia Motors has a dividend payout ratio of 7.14%.

Insider Activity at Lithia Motors

In other news regarding Lithia Motors, Director Shauna Mcintyre sold 248 shares of company stock on March 14th at an average price of $290.84, totaling a transaction value of $72,128.32. Following this sale, she holds 1,297 shares valued at around $377,219.48, marking a 16.05% decrease in her ownership of company stock. The transaction details are available in filings with the Securities and Exchange Commission. Additionally, insider Gary M. Glandon sold 325 shares on February 13th for $387.86 per share, totaling $126,054.50. Post-transaction, Glandon owns 1,665 shares valued at $645,786.90, reflecting a 16.33% reduction in his position. In total, insiders sold 1,246 shares worth $433,724 over the last three months, with insiders owning 1.79% of Lithia Motors stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have adjusted their holdings in Lithia Motors recently. This includes Norges Bank, which bought a new position worth $152,752,000 during the fourth quarter. Egerton Capital UK LLP also acquired a new position valued at $113,250,000 in the same period. Steadfast Capital Management LP notably increased its stake by 137.8% during the fourth quarter and now owns 460,298 shares worth $164,524,000 after adding 266,715 shares. Other investors, like Madison Investment Advisors LLC and Wedge Capital Management, also purchased significant stakes in the company during this period.

About Lithia Motors

Lithia Motors, Inc. operates as an automotive retailer across the globe. The company functions through two main segments: Vehicle Operations and Financing Operations. The Vehicle Operations segment engages in selling both new and used vehicles, provides parts, repair, and maintenance services, and offers vehicle financing and insurance products. On the other hand, the Financing Operations segment supplies financing options for customers looking to buy or lease retail vehicles.

Lithia, Motors, Stock, Recommendation, Investment