Lithia Motors (NYSE:LAD) Cut to Strong Sell at Zacks Research

Zacks Research cut shares of Lithia Motors (NYSE:LAD) from a hold rating to a strong sell rating in a report issued on Wednesday,Zacks.com reports. Zacks Research also issued estimates for Lithia Motors’ Q2 2027 earnings at $9.17 EPS, Q3 2027 earnings at $8.92 EPS and FY2027 earnings at $41.77 EPS.

A number of other equities analysts have also recently issued reports on LAD. Bank of America initiated coverage on shares of Lithia Motors in a research note on Wednesday, March 4th. They issued a “neutral” rating on the stock. JPMorgan Chase & Co. cut shares of Lithia Motors from an “overweight” rating to a “neutral” rating and set a $335.00 target price for the company. in a report on Friday, February 20th. Citigroup dropped their target price on shares of Lithia Motors from $399.00 to $366.00 and set a “buy” rating on the stock in a research note on Thursday, March 5th. Weiss Ratings reissued a “hold (c+)” rating on shares of Lithia Motors in a research report on Thursday, January 22nd. Finally, Wells Fargo & Company decreased their price objective on shares of Lithia Motors from $358.00 to $355.00 and set an “equal weight” rating for the company in a report on Thursday, February 12th. Six research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $382.33.

Lithia Motors Stock Down 2.6%

Shares of NYSE:LAD opened at $250.04 on Wednesday. Lithia Motors has a 52-week low of $239.78 and a 52-week high of $360.55. The firm has a market capitalization of $5.85 billion, a P/E ratio of 7.78, a P/E/G ratio of 0.61 and a beta of 1.20. The stock has a 50 day moving average price of $292.08 and a 200-day moving average price of $311.65. The company has a debt-to-equity ratio of 1.46, a quick ratio of 0.26 and a current ratio of 1.17.

Lithia Motors (NYSE:LAD) last released its quarterly earnings results on Wednesday, February 11th. The company reported $6.74 earnings per share for the quarter, missing the consensus estimate of $8.09 by ($1.35). The firm had revenue of $9.20 billion for the quarter, compared to the consensus estimate of $9.19 billion. Lithia Motors had a net margin of 2.18% and a return on equity of 12.76%. The company’s revenue for the quarter was up .3% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $7.79 earnings per share. As a group, equities research analysts anticipate that Lithia Motors will post 34.45 EPS for the current fiscal year.

Lithia Motors Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, March 20th. Shareholders of record on Friday, March 6th were paid a dividend of $0.55 per share. The ex-dividend date was Friday, March 6th. This represents a $2.20 annualized dividend and a yield of 0.9%. Lithia Motors’s dividend payout ratio is currently 6.85%.

Institutional Trading of Lithia Motors

Large investors have recently made changes to their positions in the stock. Rockefeller Capital Management L.P. raised its holdings in shares of Lithia Motors by 106.7% during the fourth quarter. Rockefeller Capital Management L.P. now owns 337 shares of the company’s stock valued at $112,000 after purchasing an additional 174 shares during the last quarter. Advisortrust Partners LLC purchased a new stake in Lithia Motors in the fourth quarter worth approximately $265,000. Corient Private Wealth LLC boosted its holdings in Lithia Motors by 87.2% in the fourth quarter. Corient Private Wealth LLC now owns 2,351 shares of the company’s stock worth $781,000 after purchasing an additional 1,095 shares during the last quarter. Caitong International Asset Management Co. Ltd grew its position in Lithia Motors by 225.5% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 166 shares of the company’s stock worth $55,000 after purchasing an additional 115 shares during the period. Finally, Arwa LLC purchased a new stake in Lithia Motors during the 4th quarter valued at $467,000.

Key Stories Impacting Lithia Motors

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

• Positive Sentiment: Some analyst coverage remains constructive — the consensus analyst view cited by an aggregation site still shows an average recommendation of “Moderate Buy,” which could provide support if other brokers stick to buy/hold views. Analyst average recommendation
• Neutral Sentiment: Market commentary and buy/sell screen articles (e.g., Yahoo Finance piece) are discussing whether LAD is a good buy now — such coverage can drive short-term interest but is unlikely to change fundamentals immediately. Is LAD a Good Stock To Buy Now?
• Negative Sentiment: Zacks Research lowered Q2/Q3 and FY2027 EPS estimates and moved its rating to “Strong Sell” (Q2 from $9.40→$9.17, Q3 from $9.53→$8.92, FY to $41.77). That combination of a formal downgrade plus lower near‑term earnings expectations is the main immediate negative catalyst pressuring the stock. Zacks research downgrade
• Negative Sentiment: Recent reported results (Feb 11 quarter) showed an EPS miss versus consensus and very slim year‑over‑year revenue growth; lingering concerns about margin pressure and inventory/used-car dynamics remain relevant for near‑term earnings visibility. Quarterly results and background

Lithia Motors Company Profile

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.