Lithia Motors, Inc (LAD) Stock: A Closer Look at the Market Potential

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The price-to-earnings ratio for Lithia Motors, Inc (NYSE: LAD) is above average at 9.72x, Company’s 36-month beta value is 1.45.Analysts have differing opinions on the stock, with 9 analysts rating it as a “buy,” 3 as “overweight,” 4 as “hold,” and 0 as “sell.”

The public float for LAD is 25.62M, and currently, short sellers hold a 6.98% ratio of that floaft. The average trading volume of LAD on April 18, 2025 was 397.41K shares.

LAD) stock’s latest price update

Lithia Motors, Inc (NYSE: LAD) has seen a rise in its stock price by 1.91 in relation to its previous close of 283.15. However, the company has experienced a -1.35% decline in its stock price over the last five trading sessions. prnewswire.com reported 2025-04-15 that MEDFORD, Ore., April 15, 2025 /PRNewswire/ — Lithia & Driveway (NYSE: LAD) has announced today that Adam Chamberlain will transition from his current role as Executive Vice President and Chief Operating Officer effective June 1, 2025 to join Mercedes-Benz as CEO of Mercedes-Benz USA.

LAD’s Market Performance

LAD’s stock has fallen by -1.35% in the past week, with a monthly drop of -5.92% and a quarterly drop of -19.42%. The volatility ratio for the week is 4.19% while the volatility levels for the last 30 days are 5.44% for Lithia Motors, Inc The simple moving average for the last 20 days is -2.06% for LAD stock, with a simple moving average of -10.29% 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 $400 based on the research report published on January 08, 2025 of the current year 2025.

Stephens, on the other hand, stated in their research note that they expect to see LAD reach a price target of $360. The rating they have provided for LAD stocks is “Overweight” according to the report published on September 12th, 2024.

Guggenheim gave a rating of “Buy” to LAD, setting the target price at $338 in the report published on August 09th of the previous year.

LAD Trading at -9.66% 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 -28.87% of loss for the given period.

Volatility was left at 5.44%, however, over the last 30 days, the volatility rate increased by 4.19%, as shares sank -5.40% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -24.70% lower at present.

During the last 5 trading sessions, LAD fell by -1.35%, which changed the moving average for the period of 200-days by +14.42% in comparison to the 20-day moving average, which settled at $294.62. In addition, Lithia Motors, Inc saw -19.27% in overturn over a single year, with a tendency to cut further losses.

Insider Trading

Reports are indicating that there were more than several insider trading activities at LAD starting from McIntyre Shauna, who sale 248 shares at the price of $290.84 back on Mar 14 ’25. After this action, McIntyre Shauna now owns 1,297 shares of Lithia Motors, Inc, valued at $72,128 using the latest closing price.

Loretz Congdon Stacy, the Director of Lithia Motors, Inc, sale 270 shares at $298.80 during a trade that took place back on Mar 12 ’25, which means that Loretz Congdon Stacy is holding 1,213 shares at $80,676 based on the most recent closing price.

Stock Fundamentals for LAD

Current profitability levels for the company are sitting at:

  • 0.04 for the present operating margin
  • 0.15 for the gross margin

The net margin for Lithia Motors, Inc stands at 0.02. The total capital return value is set at 0.1. Equity return is now at value 12.47, with 3.69 for asset returns.

Based on Lithia Motors, Inc (LAD), the company’s capital structure generated 0.23 points at debt to capital in total, while cash flow to debt ratio is standing at 0.05. The debt to equity ratio resting at 0.31. The interest coverage ratio of the stock is 2.31.

Currently, EBITDA for the company is 2.2 billion with net debt to EBITDA at 0.82. When we switch over and look at the enterprise to sales, we see a ratio of 0.26. The receivables turnover for the company is 29.25for trailing twelve months and the total asset turnover is 1.56. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.19.

Conclusion

In a nutshell, Lithia Motors, Inc (LAD) has experienced a bad performance in recent times. The stock has received mixed “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.

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