Lithia Motors Inc

Lithia Motors Inc (LAD) Stock Analysis

$370.360

-0.667 (-0.18%)At close

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High
378.930
Open
375.000
VWAP
373.05
Vol
146.15K
Mkt Cap
6.89B
Low
369.870
Amount
54.52M
EV/EBITDA, TTM
10.75

Lithia Motors, Inc. is a global automotive retailer providing a range of products and services throughout the vehicle ownership lifecycle. The Company's products and services are offered through its comprehensive network of physical locations, e-commerce platforms, captive finance solutions, fleet management offerings, and other synergistic adjacencies. The Company’s segments include Vehicle Operations and Financing Operations. Its Vehicle Operations segment consists of all aspects of its auto merchandising and aftersales operations, excluding financing provided by its Financing Operations. The Company's Financing Operations segment provides financing to customers buying and leasing retail vehicles from its Vehicle Operations, as well as leasing vehicles from its fleet management services provider. Its Driveway and GreenCars brands and online customer portal complement its in-store experiences in the United States and provide platforms that serve as its e-commerce home solutions.

AI analysis of Lithia Motors Inc (LAD)

buy

Lithia Motors Inc is a good buy right now due to its recent strong earnings report showing an adjusted EPS of $10.03, which exceeded estimates by 15.69%. Additionally, the company raised its quarterly dividend by 23% to $0.70 per share, reflecting strong cash flow and commitment to shareholder returns. However, a risk to consider is the insider selling activity, which has increased by 271.14% over the last month, indicating potential concerns among insiders.

Analyst Ratings (12)

+4.76% upside
Buy
8 Buy
3 Hold
1 Sell
Current: 370.36
Low
310.00
Average
388.00
High
500.00

Barclays

2026-08-19

Price Target

$415

Overweight

Morgan Stanley

2026-08-06

Price Target

$358

Equal Weight

JPMorgan

2026-08-04

Price Target

$340

Neutral

Citi

2026-08-03

Price Target

$455

Buy

BofA

2026-07-30

Price Target

$500

Buy

Valuation Metrics

The current forward P/E ratio for Lithia Motors Inc (LAD) is 10.29, compared to its 5-year average forward P/E of 8.23.

Forward P/E

Overvalued
5Y Average P/E
8.23
Current P/E
10.29
Overvalued
9.82
Undervalued
6.64

Forward EV/EBITDA

Fair
5Y Average EV/EBITDA
9.85
Current EV/EBITDA
10.75
Overvalued
12.16
Undervalued
7.54

Forward P/S

Fair
5Y Average P/S
0.23
Current P/S
0.21
Overvalued
0.29
Undervalued
0.18

Alphio AI Price Scenarios for LAD

Scenario prices are the last monthly forecast band of the current year. Probabilities are fixed model weights (25 / 50 / 25), not guarantees.

B

Bull

Bull · 25%LAD

$383.92

Scenario price

B

Base

Base · 50%LAD

$335.78

Scenario price

B

Bear

Bear · 25%LAD

$285.76

Scenario price

Whales holding LAD

A

Abrams Capital Management, L.P.

+ HoldingLADMETA

+9.05%

3M Return

M

Madison Investment Holdings, Inc

+ HoldingLAD

+5.28%

3M Return

T

Thompson, Siegel & Walmsley LLC

+ HoldingLAD

+3.94%

3M Return

C

Chicago Capital, LLC

+ HoldingLAD

+3.31%

3M Return

B

Bridges Investment Management Inc

+ HoldingLAD

+2.04%

3M Return

L

Long Focus Capital Management LLC

+ HoldingLAD

+1.37%

3M Return

LAD FAQ — answered by Alphio AI

Lithia Motors, Inc. is a global automotive retailer providing a range of products and services throughout the vehicle ownership lifecycle. The Company's products and services are offered through its comprehensive network of physical locations, e-commerce platforms, captive finance solutions, fleet management offerings, and other synergistic adjacencies. The Company’s segments include Vehicle Operations and Financing Operations. Its Vehicle Operations segment consists of all aspects of its auto merchandising and aftersales operations, excluding financing provided by its Financing Operations. The Company's Financing Operations segment provides financing to customers buying and leasing retail vehicles from its Vehicle Operations, as well as leasing vehicles from its fleet management services provider. Its Driveway and GreenCars brands and online customer portal complement its in-store experiences in the United States and provide platforms that serve as its e-commerce home solutions. It operates in the Consumer Cyclicals sector (RETAIL-AUTO DEALERS & GASOLINE STATIONS industry).

Lithia Motors Inc is a good buy right now due to its recent strong earnings report showing an adjusted EPS of $10.03, which exceeded estimates by 15.69%. Additionally, the company raised its quarterly dividend by 23% to $0.70 per share, reflecting strong cash flow and commitment to shareholder returns. However, a risk to consider is the insider selling activity, which has increased by 271.14% over the last month, indicating potential concerns among insiders.

12 analysts cover LAD: 8 rate it Buy, 3 Hold and 1 Sell. The average price target is 388.00.

This page is for research only and is not investment advice. Models can be wrong. Past performance does not guarantee future results.

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