Lithia Motors FY2027 EPS Forecast Raised by Zacks Research

Lithia Motors, Inc. (NYSE:LAD) – Zacks Research boosted their FY2027 earnings estimates for shares of Lithia Motors in a report issued on Friday, May 29th. Zacks Research analyst Team now expects that the company will post earnings per share of $39.54 for the year, up from their previous estimate of $37.69. Zacks Research has a “Hold” rating on the stock. The consensus estimate for Lithia Motors’ current full-year earnings is $34.26 per share. Zacks Research also issued estimates for Lithia Motors’ Q4 2027 earnings at $9.63 EPS, Q1 2028 earnings at $12.06 EPS and FY2028 earnings at $49.98 EPS.

Lithia Motors (NYSE:LAD) last announced its quarterly earnings data on Wednesday, April 29th. The company reported $7.34 earnings per share (EPS) for the quarter, topping the consensus estimate of $7.06 by $0.28. The company had revenue of $9.27 billion for the quarter, compared to analysts’ expectations of $9.22 billion. Lithia Motors had a net margin of 1.88% and a return on equity of 12.49%. The business’s revenue was up 1.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $7.66 EPS.

Other equities analysts have also recently issued research reports about the stock. Wall Street Zen raised shares of Lithia Motors from a “sell” rating to a “hold” rating in a research note on Saturday. Bank of America lowered their price objective on shares of Lithia Motors from $335.00 to $320.00 in a research note on Monday, April 13th. UBS Group assumed coverage on shares of Lithia Motors in a research note on Wednesday, May 27th. They issued a “buy” rating and a $348.00 price objective on the stock. Citigroup lifted their price objective on shares of Lithia Motors from $326.00 to $365.00 and gave the stock a “buy” rating in a research note on Friday, May 1st. Finally, Wells Fargo & Company lifted their price objective on shares of Lithia Motors from $293.00 to $305.00 and gave the stock an “equal weight” rating in a research note on Thursday, April 30th. Seven investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat, Lithia Motors has an average rating of “Moderate Buy” and a consensus target price of $365.30.

Lithia Motors Stock Performance

Shares of LAD opened at $293.54 on Tuesday. The firm’s 50 day moving average is $272.31 and its 200-day moving average is $298.60. The stock has a market capitalization of $6.69 billion, a P/E ratio of 10.31, a P/E/G ratio of 0.64 and a beta of 1.26. The company has a debt-to-equity ratio of 1.41, a current ratio of 0.99 and a quick ratio of 0.24. Lithia Motors has a 12-month low of $239.78 and a 12-month high of $360.55.

Institutional Trading of Lithia Motors

Institutional investors and hedge funds have recently modified their holdings of the company. Abrams Capital Management L.P. increased its position in Lithia Motors by 1.9% during the third quarter. Abrams Capital Management L.P. now owns 2,490,534 shares of the company’s stock worth $787,009,000 after acquiring an additional 45,856 shares during the period. Dimensional Fund Advisors LP increased its position in Lithia Motors by 3.2% during the first quarter. Dimensional Fund Advisors LP now owns 1,389,870 shares of the company’s stock worth $347,074,000 after acquiring an additional 43,087 shares during the period. 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 worth $246,814,000 after acquiring an additional 186,628 shares during the period. Canada Pension Plan Investment Board increased its position in Lithia Motors by 5.9% during the second quarter. Canada Pension Plan Investment Board now owns 612,377 shares of the company’s stock worth $206,873,000 after acquiring an additional 33,966 shares during the period. Finally, Hotchkis & Wiley Capital Management LLC increased its position in Lithia Motors by 3.6% during the third quarter. Hotchkis & Wiley Capital Management LLC now owns 426,120 shares of the company’s stock worth $134,654,000 after acquiring an additional 14,781 shares during the period.

Insider Buying and Selling

In other Lithia Motors news, Director Shauna Mcintyre sold 245 shares of Lithia Motors stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $294.64, for a total value of $72,186.80. Following the completion of the sale, the director directly owned 1,846 shares in the company, valued at $543,905.44. The trade was a 11.72% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Richard J. Bailey, Jr. sold 297 shares of Lithia Motors stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $280.57, for a total transaction of $83,329.29. Following the completion of the sale, the director owned 760 shares of the company’s stock, valued at $213,233.20. This trade represents a 28.10% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 617 shares of company stock valued at $174,966 over the last quarter. Corporate insiders own 1.08% of the company’s stock.

Lithia Motors Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, May 22nd. Shareholders of record on Friday, May 8th were paid a $0.57 dividend. This represents a $2.28 dividend on an annualized basis and a yield of 0.8%. This is a boost from Lithia Motors’s previous quarterly dividend of $0.55. The ex-dividend date was Friday, May 8th. Lithia Motors’s dividend payout ratio is presently 8.01%.

Lithia Motors announced that its Board of Directors has initiated a stock buyback plan on Tuesday, May 26th that allows the company to repurchase $500.00 million in outstanding shares. This repurchase authorization allows the company to reacquire up to 7.9% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s board of directors believes its stock is undervalued.

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.