To date this year, LAD has invested nearly $933 million to repurchase 2.98 million shares at a weighted average price of $313. This represents 11.3% of outstanding shares. $636 million remains available for repurchase under the existing share repurchase authorization. Fines Ford Acquisition Additionally, LAD completed the acquisition of Fines Ford in the Greater Toronto Area, Canada. This strategic investment demonstrates LAD's continued ability to strengthen its network in the North American market. This s ...

We recently published 12 Best Consumer Cyclical Stocks to Buy According to Analysts.  Lithia Motors, Inc. (NYSE:LAD) is one of the best consumer cyclical stocks Lithia Motors, Inc. (NYSE:LAD) is an American vehicle retailer that sells new and old vehicles. It is one of the largest retailers of its kind, with 298 outlets in the US and 151 in the UK As of November 28th, 8 out of 15 analyst recommendations for Lithia Motors, Inc. (NYSE:LAD) were a Buy. Out of the remaining seven, four were a Strong Buy whil ...

Core Insights - Lithia Motors has seen significant interest from institutional investors, with several firms increasing their stakes in the company during the second quarter [1][8] - Analysts are optimistic about Lithia Motors, with multiple firms raising their price targets and maintaining positive ratings [2] - The company reported strong quarterly earnings, exceeding analyst expectations and showing year-over-year revenue growth [4] Institutional Investment Activity - Nisa Investment Advisors LLC increased its stake by 16.9%, owning 276 shares valued at $93,000 after purchasing 40 additional shares [1] - Assetmark Inc. raised its stake by 2.5%, now holding 1,753 shares worth $592,000 after acquiring 42 more shares [1] - Bessemer Group Inc. significantly boosted its holdings by 114.6%, now owning 88 shares valued at $29,000 after acquiring 47 shares [1] Analyst Ratings and Price Targets - Citigroup raised its price target from $385.00 to $399.00, maintaining a "buy" rating [2] - JPMorgan Chase increased its price objective from $320.00 to $350.00, giving an "overweight" rating [2] - Evercore ISI raised its price target from $440.00 to $500.00, assigning an "outperform" rating [2] Financial Performance - Lithia Motors reported an EPS of $9.50 for the quarter, surpassing the consensus estimate of $8.53 by $0.97 [4] - The company achieved revenue of $9.68 billion, exceeding expectations of $9.38 billion, with a year-over-year revenue increase of 4.9% [4] - The return on equity was reported at 13.42%, with a net margin of 2.39% [4] Dividend and Share Repurchase - Lithia Motors declared a quarterly dividend of $0.55 per share, representing an annualized dividend of $2.20 and a yield of 0.7% [5] - The company initiated a share repurchase program allowing for the buyback of $750 million in outstanding shares, indicating management's belief in the stock's undervaluation [6] Company Overview - Lithia Motors operates as an automotive retailer, with segments in Vehicle Operations and Financing Operations, providing a range of services including vehicle sales, parts, repair, and financing [9]

Core Viewpoint - Lithia Motors reported strong Q3 2025 earnings, beating estimates, but shares have declined by 11.5% since the last earnings report, underperforming the S&P 500 [1][2]. Financial Performance - Adjusted earnings per share for Q3 2025 were $9.50, up from $8.21 in the prior year and exceeding the Zacks Consensus Estimate of $8.53 [2]. - Total revenues reached $9.67 billion, a 5% increase year over year, surpassing the Zacks Consensus Estimate of $9.61 billion [2]. Segmental Performance - New vehicle retail revenues increased by 4.5% year over year to $4.63 billion, exceeding estimates due to higher unit sales and average selling price (ASP) [3]. - New vehicle units sold rose by 1.8% to 96,639 units, beating the estimate of 95,276 units, with ASP increasing to $47,913 from $46,649 [3]. - Used vehicle retail revenues grew by 8.9% to $3.1 billion, surpassing estimates, driven by higher ASP [4]. - Used vehicle retail units sold increased by 4% to 109,097 units, though below expectations, with ASP rising to $28,381 [4]. - Revenues from used vehicle wholesale fell by 6.1% to $367 million, missing estimates [5]. Cost and Expenses - Cost of sales increased by 5.4% year over year, while SG&A expenses rose by 5.8% to $998 million [7]. - Adjusted SG&A as a percentage of gross profit was 67.9%, up from 66% in the prior year [7]. Cash and Debt Position - Cash and cash equivalents increased to $417.1 million as of September 30, 2025, from $402.2 million at the end of 2024 [9]. - Long-term debt rose to $6.97 billion as of September 30, 2025, up from $6.12 billion at the end of 2024 [9]. Shareholder Returns - The company announced a dividend of 55 cents per share, payable on November 21, 2025 [8]. - Lithia repurchased approximately 1,312,000 shares at an average price of $312, with $889.3 million remaining under its buyback authorization [8]. Market Outlook - Lithia Motors holds a Zacks Rank 3 (Hold), indicating an expectation of an in-line return in the coming months [13]. - The company has a strong Growth Score of A but lags in Momentum Score with a D, while maintaining an aggregate VGM Score of A [12].

Group 1 - Group 1 operates extensively across the U.S., with a strong presence in the Northeast, Southeast, Texas, and California, and is the 1 auto retailer in Texas [1] - The company has 324 new vehicle franchises and 259 franchised new vehicle dealerships, generating $19.9 billion in revenue last year [3] - Group 1 is a leader in the aftermarket sales segment, successfully adapting to the complexities of modern vehicles, including electric vehicles [2] Group 2 - The U.S. auto dealer market is valued at approximately $2.95 trillion and is projected to reach $3.68 trillion by 2030, reflecting a CAGR of about 4.5% [6] - The demand for personal vehicles remains strong, supporting a steadily expanding automotive dealership industry [7] Group 3 - In Q3 2025, Group 1 reported record revenues of $5.8 billion, a 10% year-over-year increase, and a non-GAAP EPS of $10.45, up 5.6% year-over-year [9] - Analyst Babcock sees Group 1 as having significant growth potential, trading at 8.8x forward P/E, below the dealer average, with a price target of $510, suggesting a 30% gain [10] Group 4 - Lithia Motors, another major player, has 450 dealer locations and reported Q3 revenue of $9.7 billion, up 5% year-over-year [14] - Lithia's strategic goal includes expanding luxury car services, recently acquiring two luxury dealerships generating $450 million in annual revenue [13] Group 5 - AutoNation operates 323 dealer locations and reported Q3 revenue of $7.01 billion, a 7% year-over-year increase [19] - Analyst Babcock highlights AutoNation's consistent operating performance and favorable valuation, setting a price target of $250, indicating a 27% potential gain [20]

Group 1 - Barclays analyst John Babcock indicates investment opportunities in the automotive dealership sector due to expected profit growth in fiscal year 2026 and a recent decline in valuations [1] - The automotive retail industry is rated as "neutral," but certain companies show potential for above-average performance due to strong growth trends and resilience in adverse economic cycles [1] - Demand for used cars in the U.S. is weak, and auto credit data shows a decrease in demand in the subprime market [1] Group 2 - Companies rated "buy" include Carvana (CVNA.US) for its investment in optimizing online purchasing experience, while CarMax (KMX.US) is rated "sell" due to inconsistent operational performance and potential higher-than-expected loan loss reserves [1] - In the new and used car dealership segment, companies rated "buy" include AutoNation (AN.US), Group 1 Automotive (GPI.US), Lithia Motors (LAD.US), and Penske Automotive (PAG.US) based on strong same-store sales growth and stable operational performance [2] - Asbury Automotive (ABG.US) and Sonic Automotive (SAH.US) are rated "hold" [2]

Core Insights - Lithia & Driveway has announced the acquisition of Porsche Beverly Hills and Audi Santa Monica, which are expected to generate approximately $450 million in annualized revenue and have the potential to be among the highest volume dealerships globally by brand [1][2]. Group 1: Acquisition Details - The acquisition of Porsche Beverly Hills and Audi Santa Monica is part of Lithia's strategy to enhance its luxury vehicle offerings and expand its dealership ecosystem [2]. - This acquisition brings Lithia's total expected annualized revenue from acquisitions in 2025 to $2.1 billion, showcasing the company's aggressive growth strategy [2]. Group 2: Financial Performance - Lithia & Driveway reported record third-quarter revenue of $9.7 billion, marking a significant achievement in the company's financial performance [6]. - The company achieved an 11% increase in diluted earnings per share and a 17% increase in adjusted diluted earnings per share, indicating strong profitability [6]. Group 3: Recognition and Market Position - Lithia & Driveway has been ranked 165 on TIME's list of America's Growth Leaders of 2026, highlighting its exceptional growth, financial stability, and market performance [2]. - This recognition positions Lithia among the most dynamic and successful companies in the U.S., contributing to innovation and economic progress [2].

Group 1 - Crude Value Insights provides an investment service and community focused on the oil and natural gas sectors, emphasizing cash flow and companies that generate it [1] - The service offers subscribers access to a model account with over 50 stocks, detailed cash flow analyses of exploration and production (E&P) firms, and live chat discussions about the sector [1] Group 2 - A two-week free trial is available for new subscribers, promoting engagement with the oil and gas market [2]

Group 1 - Crude Value Insights provides an investment service and community focused on the oil and natural gas sectors, emphasizing cash flow and companies that generate it [1] - The service offers subscribers access to a model account with over 50 stocks, detailed cash flow analyses of exploration and production (E&P) firms, and live chat discussions about the sector [1] Group 2 - A two-week free trial is available for new subscribers, promoting engagement with the oil and gas market [2]

Core Viewpoint - Lithia Motors (LAD) is performing well in the used vehicle and aftersales segments, but faces challenges in new vehicle profitability and consumer affordability [1]. Group 1: Company Performance - Lithia Motors is experiencing success in the used vehicle market and aftersales services, indicating strong operational performance in these areas [1]. - New vehicle profitability for Lithia Motors is under pressure, suggesting potential challenges in maintaining margins in this segment [1]. Group 2: Market Conditions - Consumer affordability remains a significant issue, which could impact sales and profitability for Lithia Motors in the new vehicle segment [1].