Is a Correction Looming Ahead for Lithia Motors Inc. (LAD)

Lithia Motors Inc. (NYSE:LAD) went up by 7.58% from its latest closing price compared to the recent 1-year high of $278.14. The company’s stock price has collected 1.07% of gains in the last five trading sessions. Press Release reported 12 hours ago that Lithia Announces Pricing of Public Offering of Common Stock

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Is It Worth Investing in Lithia Motors Inc. (NYSE :LAD) Right Now?

Lithia Motors Inc. (NYSE:LAD) scored a price-to-earnings ratio above its average ratio, recording 19.23 x from its present earnings ratio. Plus, the 36-month beta value for LAD is at 1.82. Opinions of the stock are interesting as 7 analysts out of 8 who provided ratings for Lithia Motors Inc. declared the stock was a “buy,” while 1 rated the stock as “overweight,” 0 rated it as “hold,” and 0 as “sell.”


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The average price from analysts is $273.57, which is -$15.07 below the current price. LAD currently public float of 22.11M and currently shorts hold a 11.40% ratio of that float. Today, the average trading volume of LAD was 409.93K shares.

LAD’s Market Performance

LAD stocks went up by 1.07% for the week, with a monthly drop of -8.44% and a quarterly performance of 47.11%, while its annual performance rate touched 76.25%. The volatility ratio for the week stands at 4.01% while the volatility levels for the past 30 days are set at 4.37% for Lithia Motors Inc.. The simple moving average for the period of the last 20 days is 4.34% for LAD stocks with a simple moving average of 59.43% for the last 200 days.

Analysts’ Opinion of LAD

Many brokerage firms have already submitted their reports for LAD stocks, with The Benchmark Company repeating the rating for LAD by listing it as a “Buy.” The predicted price for LAD in the upcoming period, according to The Benchmark Company is $285 based on the research report published on August 27th of the current year 2020.

Buckingham Research, on the other hand, stated in their research note that they expect to see LAD reach a price target of $155, previously predicting the price at $144. The rating they have provided for LAD stocks is “Buy” according to the report published on February 24th, 2020.

The Benchmark Company gave a rating of “Buy” to LAD, setting the target price at $185 in the report published on January 09th of the current year.

LAD Trading at 1.47% from the 50-Day Moving Average

After a stumble in the market that brought LAD to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -11.84% of loss for the given period.

Volatility was left at 4.37%, however, over the last 30 days, the volatility rate increased by 4.01%, as shares sank -6.63% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +14.23% upper at present.

During the last 5 trading sessions, LAD rose by +8.62%, which changed the moving average for the period of 200-days by +56.13% in comparison to the 20-day moving average, which settled at $234.15. In addition, Lithia Motors Inc. saw 55.06% in overturn over a single year, with a tendency to cut further gains.

Insider Trading

Reports are indicating that there were more than several insider trading activities at LAD starting from Dobry Thomas, who sale 2,321 shares at the price of $241.43 back on Sep 11. After this action, Dobry Thomas now owns 17,151 shares of Lithia Motors Inc., valued at $560,354 using the latest closing price.

Miramontes Louis, the Director of Lithia Motors Inc., sale 381 shares at $245.06 during a trade that took place back on Aug 28, which means that Miramontes Louis is holding 3,920 shares at $93,366 based on the most recent closing price.

Stock Fundamentals for LAD

Current profitability levels for the company are sitting at:

  • +3.94 for the present operating margin
  • +14.77 for the gross margin

The net margin for Lithia Motors Inc. stands at +2.14. The total capital return value is set at 10.09, while invested capital returns managed to touch 9.54. Equity return is now at value 19.10, with 4.70 for asset returns.

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Based on Lithia Motors Inc. (LAD), the company’s capital structure generated 258.99 points at debt to equity in total, while total debt to capital is 72.14. Total debt to assets is 60.88, with long-term debt to equity ratio resting at 113.72. Finally, the long-term debt to capital ratio is 31.68.

Currently, EBITDA for the company is 157.50M with total debt to EBITDA at 6.08. When we switch over and look at the enterprise to sales, we see a ratio of 0.56, with the company’s debt to enterprise value settled at 0.53. The receivables turnover for the company is 24.10 and the total asset turnover is 2.16. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.20.

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