Lithia Motors Shares Receive Hold Rating, But Analysts Predict Steady Growth for the Company
As of May 12, 2023, Lithia Motors, Inc. (NYSE:LAD) has received a “Hold” rating from eleven ratings firms and an average 12-month target price of $300.56 among analysts who have covered the stock in the last year. The company has been met with mixed reviews since their April 19th earnings report showed revenue of $6.97 billion for the quarter, down from analyst estimates of $7.28 billion, and missed consensus estimates by ($0.35) per share.
Despite this news, Lithia Motors remains a reliable investment opportunity, with an estimated EPS of 34.16 for the current fiscal year. Additionally, hedge funds and institutional investors have recently modified their holdings in LAD, indicating confidence in the long-term potential of the company.
Northwestern Mutual Wealth Management Co., Mercer Global Advisors Inc., Inspire Investing LLC, Signaturefd LLC, and CWM LLC all increased their positions in LAD during Q1 of 2023. Northwestern Mutual saw a 3.3% increase while Mercer Global Advisors Inc., Inspire Investing LLC and Signaturefd LLC received increments that ranged between 3.9% to 24.2%. Meanwhile, CWM LLC experienced an impressive uptick by purchasing an additional 58 shares which accounted for a significant increase of about 34%.
Lithia Motors generates great wealth for its shareholders through multiple channels such as; retail automotive sales (new cars), used vehicle sales service operations (mechanical repairs and maintenance), and dealership acquisitions across North America.
While some may be hesitant to invest in Lithia Motors due to recent lackluster performance on Wall Street reports, it’s important to note that this company is expected to maintain growth throughout the years — meaning it could be a valuable asset for any investment portfolio in 2023 and beyond.
Insider Trading and Shifting Ratings: An Analysis of Lithia Motors’ Stock Performance
Lithia Motors, Inc. (NYSE: LAD) has been the subject of much attention from research firms in recent months, with a range of ratings and price targets being issued. On February 1st, TheStreet raised Lithia’s shares from a “c+” rating to a “b-” rating, while Morgan Stanley subsequently decreased their target price from $200.00 to $198.00 and assigned an “underweight” rating to the company on January 17th. On February 16th, Wells Fargo & Company lifted their price target on the stock to $262.00 and gave it an “equal weight” rating in their research report. Meanwhile, Guggenheim set a “buy” rating for Lithia Motors with a price objective of $320.00 on April 20th following their reduction from $332.00.
Shares of NYSE LAD opened at $214.86 on May 12th with a market capitalization of $5.91 billion, as well as a debt-to-equity ratio of 1:07 and fast liquidity ratios of 1:30 and 0:33 depending on its quick ratio vs current ratio on hand respectively among others noteworthy financial indicators.
Various hedge funds and institutional investors have been seen modifying their holdings of LAD shares lately. As per insider trading disclosures made to SEC filings on Monday, May 8th – Insider George N Hines who has over time shown track records of solid intellect after consistently making sound stock decisions; sold some shares at an average selling price amounting to approximately $219.55 for each share he divested while remaining unaware that in finalizing this transaction it would bring forth a total sale amounting to almost around $327,129 worth (or more).
The company also recently declared an increase in their quarterly dividend payment amounting to fifty cents ($0.50) per share payable as counterbalance to shareholders on May 26th with a record date of Friday, May 12th representing the company’s current annualized dividend payout ratio of 4.9%.
Furthermore, recent SEC filings also revealed that LAD Director Shauna McIntyre sold some shares priced at an average value of $260.00, amounting to approximately $43,420 ($43.4K) worth which was made public earlier in February while George N Hines reportedly offloaded his own stake (again) by unloading another batch for around $327 thousand dollars or so (give or take a few bucks).
Despite the continual insider sales and changing ratings from research firms, Lithia Motors has managed to maintain its position in the market and is still seen as a viable investment opportunity by most analysts. The mystery surrounding its future prospects has not yet been resolved but investors are confident that this stock will continue to trend upwards despite any uncertain economic climates that may arise.
