Lithia Motors (NYSE:LAD) Lowered to “Sell” Rating by Wall Street Zen

Wall Street Zen downgraded shares of Lithia Motors (NYSE:LAD) from a hold rating to a sell rating in a report published on Saturday.

LAD has been the subject of a number of other research reports. Evercore raised their target price on shares of Lithia Motors from $440.00 to $500.00 and gave the company an “outperform” rating in a research note on Monday, November 24th. Wells Fargo & Company dropped their target price on Lithia Motors from $358.00 to $355.00 and set an “equal weight” rating on the stock in a report on Thursday, February 12th. Weiss Ratings reissued a “hold (c+)” rating on shares of Lithia Motors in a research note on Thursday, January 22nd. Barclays lowered their price target on Lithia Motors from $390.00 to $380.00 and set an “overweight” rating for the company in a research report on Tuesday, February 17th. Finally, JPMorgan Chase & Co. downgraded shares of Lithia Motors from an “overweight” rating to a “neutral” rating and set a $335.00 price objective on the stock. in a research report on Friday, February 20th. Seven research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat, Lithia Motors presently has an average rating of “Moderate Buy” and a consensus price target of $386.00.

Lithia Motors Stock Performance

Shares of Lithia Motors stock opened at $279.72 on Friday. Lithia Motors has a 12 month low of $262.10 and a 12 month high of $360.55. The firm has a market capitalization of $6.78 billion, a P/E ratio of 8.70 and a beta of 1.20. The company has a current ratio of 1.17, a quick ratio of 0.26 and a debt-to-equity ratio of 1.46. The business has a fifty day simple moving average of $323.09 and a two-hundred day simple moving average of $320.91.

Lithia Motors (NYSE:LAD) last issued its quarterly earnings results on Wednesday, February 11th. The company reported $6.74 earnings per share (EPS) for the quarter, missing the consensus estimate of $8.09 by ($1.35). Lithia Motors had a return on equity of 12.76% and a net margin of 2.18%.During the same quarter in the prior year, the business earned $7.79 earnings per share. The company’s revenue for the quarter was up .3% compared to the same quarter last year. On average, equities analysts forecast that Lithia Motors will post 34.45 earnings per share for the current fiscal year.

Lithia Motors Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, March 20th. Investors of record on Friday, March 6th will be given a dividend of $0.55 per share. The ex-dividend date of this dividend is Friday, March 6th. This represents a $2.20 annualized dividend and a dividend yield of 0.8%. Lithia Motors’s dividend payout ratio (DPR) is 6.85%.

Insiders Place Their Bets

In other Lithia Motors news, Director Congdon Stacy Loretz sold 75 shares of the company’s stock in a transaction dated Friday, December 12th. The shares were sold at an average price of $360.00, for a total transaction of $27,000.00. Following the transaction, the director owned 1,810 shares in the company, valued at approximately $651,600. This represents a 3.98% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 0.87% of the company’s stock.

Institutional Investors Weigh In On Lithia Motors

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Abrams Capital Management L.P. raised its stake in Lithia Motors by 1.9% during the 3rd quarter. Abrams Capital Management L.P. now owns 2,490,534 shares of the company’s stock valued at $787,009,000 after buying an additional 45,856 shares during the last quarter. Dimensional Fund Advisors LP increased its position in Lithia Motors by 0.5% during the fourth quarter. Dimensional Fund Advisors LP now owns 1,346,783 shares of the company’s stock valued at $447,583,000 after acquiring an additional 6,113 shares during the last quarter. River Road Asset Management LLC increased its position 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 last quarter. Canada Pension Plan Investment Board lifted its holdings in Lithia Motors by 5.9% in the second quarter. Canada Pension Plan Investment Board now owns 612,377 shares of the company’s stock valued at $206,873,000 after acquiring an additional 33,966 shares during the period. Finally, Geode Capital Management LLC boosted its position in Lithia Motors by 2.5% in the second quarter. Geode Capital Management LLC now owns 479,537 shares of the company’s stock worth $162,022,000 after purchasing an additional 11,859 shares during the last quarter.

Key Headlines Impacting Lithia Motors

Here are the key news stories impacting Lithia Motors this week:

• Positive Sentiment: Zacks Research raised certain near-term estimates (notably boosting a Q1/Q4 2027 quarterly projection), suggesting pockets of stronger expected profitability for specific periods. Article Title
• Neutral Sentiment: Lithia’s board expansion is getting attention as investors parse whether it signals an operational or strategic shift (could be neutral to positive if it improves execution, but unclear near-term impact). Does Lithia Motors’ (LAD) Board Expansion Hint At Deeper Shifts In Its Execution Strategy?
• Negative Sentiment: Zacks issued multiple downward revisions across several quarters and fiscal-year forecasts — cuts to FY2026 (to $37.25 from $38.19) and a modest trim to FY2027 (to $42.55 from $43.72), plus several quarterly downgrades — which weigh on near-term earnings expectations and valuation.
• Negative Sentiment: An independent outlet (Wall Street Zen) lowered its rating on LAD, which can amplify selling pressure following the mixed estimate changes. Article Title

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.