Zacks Research Boosts Earnings Estimates for Lithia Motors

Lithia Motors, Inc. (NYSE:LAD) – Stock analysts at Zacks Research upped their Q3 2025 earnings per share estimates for shares of Lithia Motors in a research report issued to clients and investors on Monday, September 22nd. Zacks Research analyst Team now anticipates that the company will earn $8.88 per share for the quarter, up from their prior estimate of $8.79. The consensus estimate for Lithia Motors’ current full-year earnings is $34.45 per share. Zacks Research also issued estimates for Lithia Motors’ Q1 2026 earnings at $7.88 EPS, Q3 2026 earnings at $10.07 EPS and Q1 2027 earnings at $9.53 EPS.

Lithia Motors (NYSE:LAD) last issued its quarterly earnings results on Tuesday, July 29th. The company reported $10.24 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $9.78 by $0.46. The company had revenue of $9.58 billion during the quarter, compared to the consensus estimate of $9.56 billion. Lithia Motors had a return on equity of 13.21% and a net margin of 2.39%.

A number of other brokerages also recently issued reports on LAD. The Goldman Sachs Group started coverage on Lithia Motors in a research report on Tuesday, June 3rd. They issued a “neutral” rating and a $340.00 price target for the company. Wells Fargo & Company decreased their target price on Lithia Motors from $364.00 to $317.00 and set an “equal weight” rating for the company in a research report on Wednesday, July 30th. JPMorgan Chase & Co. decreased their target price on Lithia Motors from $335.00 to $315.00 and set an “overweight” rating for the company in a research report on Tuesday, August 5th. Jefferies Financial Group started coverage on Lithia Motors in a research report on Thursday, September 4th. They set a “buy” rating and a $400.00 target price for the company. Finally, Citigroup lifted their target price on Lithia Motors from $378.00 to $383.00 and gave the stock a “buy” rating in a research report on Tuesday, August 5th. Eight equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $376.50.

Lithia Motors Stock Up 0.5%

Shares of LAD opened at $335.78 on Wednesday. The company has a market cap of $8.61 billion, a PE ratio of 9.95, a P/E/G ratio of 0.67 and a beta of 1.31. The business has a fifty day moving average of $318.03 and a 200 day moving average of $314.16. Lithia Motors has a 52-week low of $262.10 and a 52-week high of $405.67. The company has a quick ratio of 0.29, a current ratio of 1.22 and a debt-to-equity ratio of 1.24.

Institutional Investors Weigh In On Lithia Motors

Large investors have recently bought and sold shares of the company. Abrams Capital Management L.P. lifted its holdings in Lithia Motors by 2.2% in the first quarter. Abrams Capital Management L.P. now owns 2,444,678 shares of the company’s stock valued at $717,611,000 after acquiring an additional 53,490 shares during the period. Coppell Advisory Solutions LLC raised its stake in Lithia Motors by 10,136,710.0% in the 1st quarter. Coppell Advisory Solutions LLC now owns 2,027,362 shares of the company’s stock valued at $595,112,000 after purchasing an additional 2,027,342 shares during the last quarter. Dimensional Fund Advisors LP grew its holdings in Lithia Motors by 6.1% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,267,519 shares of the company’s stock valued at $372,053,000 after buying an additional 72,980 shares in the last quarter. Canada Pension Plan Investment Board grew its holdings in Lithia Motors by 5.9% in the 2nd quarter. Canada Pension Plan Investment Board now owns 612,377 shares of the company’s stock valued at $206,873,000 after buying an additional 33,966 shares in the last quarter. Finally, Geode Capital Management LLC grew its holdings in Lithia Motors by 2.5% in the 2nd quarter. Geode Capital Management LLC now owns 479,537 shares of the company’s stock valued at $162,022,000 after buying an additional 11,859 shares in the last quarter.

Insider Buying and Selling at Lithia Motors

In other news, Director Shauna Mcintyre sold 256 shares of the business’s stock in a transaction dated Thursday, July 31st. The stock was sold at an average price of $293.05, for a total transaction of $75,020.80. Following the sale, the director owned 1,376 shares in the company, valued at approximately $403,236.80. The trade was a 15.69% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 0.87% of the company’s stock.

Lithia Motors Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, August 22nd. Stockholders of record on Friday, August 8th were paid a dividend of $0.55 per share. The ex-dividend date was Friday, August 8th. This represents a $2.20 dividend on an annualized basis and a dividend yield of 0.7%. Lithia Motors’s payout ratio is presently 6.52%.

Lithia Motors announced that its Board of Directors has initiated a stock buyback plan on Tuesday, August 26th that authorizes the company to repurchase $750.00 million in shares. This repurchase authorization authorizes the company to repurchase up to 9% of its stock through open market purchases. Stock repurchase plans are often an indication that the company’s leadership believes its shares are undervalued.

About Lithia Motors

Lithia Motors, Inc operates as an automotive retailer worldwide. It operates in two segments, Vehicle Operations and Financing Operations. The company’s Vehicle Operations segment sells new and used vehicles; provides parts, repair, and maintenance services; vehicle finance; and insurance products. Its Financing Operations segment provides financing to customers buying and leasing retail vehicles.