LAD stock: buy or sell?
September 20th, 2019
Lithia Motors, Inc. operates automotive franchises, and retails new and used vehicles in the United States. The company operates in three segments: Domestic, Import, and Luxury.
Should I buy LAD stock?Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. That's why is so important to define your own trading strategy that matches with your character as inversor. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.
Currently, Lithia Motors stock doesn't match any of these trading strategies, so our recommendation is not to buy.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
Is Lithia Motors stock a buy?
Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness.At Stocks2.com, we detected 11 ratings published for LAD stock in the last month. The general sentiment of these ratings is bullish for LAD stock, with 8 positive ratings.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-9-13||Bank of America||Neutral||Underperform|
|2019-7-9||JPMorgan Chase & Co.||n/a||Overweight|
|2019-4-26||Bank of America||Buy||Neutral|
|2019-2-19||JPMorgan Chase & Co.||n/a||Overweight|
|2019-2-13||Seaport Global Securities||n/a||Buy|
LAD stock analysis
Lithia Motors shares stayed constant 0.18% to $130.16 today.
Lithia Motors stayed steady a tight 0.18% and closed at $130.16. On July LAD price bounced up over the SMA of 50 days demonstrating to be a significant support for this stock. On July, LAD hit new all time highs, pushing higher previous ATH of $137.02 recorded on July. New ATHs are usual entry points for many trading setups as there aren't higher resistences.
Lithia Motors shares stepped up 1.57% this week, ending at $130.16.
Not so far away is the last all-time high Lithia Motors marked late July. Early April, SMA20w and SMA40w crossed up triggering a rise of 39.84%. Since price and SMA40w lines crossed up by mid February, LAD climbed $46.54 (55.66%).
LAD stock price history
LAD IPO was on December 18th, 1996 at $8.79 per share1. Since then, LAD stock surged a 1,380.80%, with a yearly average of 62.80%. If you had invested $1,000 in LAD stock in 1996, it would worth $13,808.00 today.
1: Adjusted price after possible price splits or reverse-splits.
LAD stock historical price chart
LAD stock reached all-time highs on July with a price of $138.85.
LAD stock price target is $124.30Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last 30 days we found 9 price forecasts for LAD stock:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-8-2||Morgan Stanley||Raises Target||$129.00||$144.00||11.6%|
|2019-7-9||Morgan Stanley||Raises Target||$128.00||$129.00||0.8%|
|2019-7-9||JPMorgan Chase & Co.||Raises Target||$117.00||$122.00||4.3%|
|2019-5-6||Morgan Stanley||Raises Target||$117.00||$128.00||9.4%|
|2019-4-16||Morgan Stanley||Raises Target||$99.00||$104.00||5.1%|
|2019-2-19||JPMorgan Chase & Co.||Initiates||n/a||$112.00||-|
|2019-2-13||Seaport Global Securities||Initiates||n/a||$110.00||-|
Financials and fundamental analysis
Earnings date and Earnings per ShareAfter posting its last earnings report on May, Lithia Motors rocketed a great 14.19%. Unfortunately, reported EPS is not yet available in our database.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsCompared to 2017, last anual turnover report draw an outstanding increase of 17.20% to $11,821.40 M dollars. When comparing 2018 vs 2017, nevertheless, profit margin (that is, the net income divided by revenues) remained steady a -0.18% to 2.25%. Lithia Motors presents anual results in December, and to evaluate its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Lithia Motors TTM sales up to March 2019 were $12,011.42 and earnings $270.04 M USD. When comparing this TTM figures with the last reported annuality, we can esteem Lithia Motors business evolution since December 2018: Annual turnover up to March, compared to lastest yearly report, grew a slightly good 1.61%. Regarding profit margin, Lithia Motors stayed steady 0.00% to 2.25%
|2013||$4,010 M||-||$105 M2.6%||-|
|2014||$5,390 M||34.42%||$139 M2.6%||31.85%|
|2015||$7,864 M||45.90%||$183 M2.3%||31.92%|
|2016||$8,678 M||10.35%||$197 M2.3%||7.68%|
|2017||$10,087 M||16.23%||$245 M2.4%||24.43%|
|2018||$11,821 M||17.20%||$266 M2.2%||8.36%|
|TTM||$12,011 M||1.61%||$270 M2.2%||1.63%|
Quarterly financial resultsLithia Motors posted $2,849.70 M in revenues for 2019-Q1, a -4.15% less compared to previous quarter. Reported quarter earnings marked $56.40 million with a profit margin of 1.98%. Profit margin remained stable a -0.03% compared to previous quarter when profit margin was 2.01%. When comparing revenues to same quarter last year, Lithia Motors sales marked a shining gain and jumped a 7.14%. Looking back to recent quarterly results, Lithia Motors posted 3 negative quarters in a row.
|2017-Q2||$2,470 M||-||$53 M2.2%||-|
|2017-Q3||$2,680 M||8.50%||$52 M1.9%||-2.46%|
|2017-Q4||$2,703 M||0.86%||$89 M3.3%||72.30%|
|2018-Q1||$2,660 M||-1.60%||$52 M2.0%||-41.77%|
|2018-Q2||$3,097 M||16.43%||$61 M2.0%||16.52%|
|2018-Q3||$3,092 M||-0.15%||$93 M3.0%||53.49%|
|2018-Q4||$2,973 M||-3.84%||$60 M2.0%||-35.70%|
|2019-Q1||$2,850 M||-4.15%||$56 M2.0%||-5.80%|
Lithia Motors ownershipWhen you are planning to invest in a company, it's worth to check its ownership structure.
Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Lithia Motors, 1.76% of all outstanding shares are owned by its staff.
Bearish positions for LAD stock account 0.00%, no big difference from last month.
For a better understanding, the following table shows ownership data compared to other related companies:
|Market cap||$2.9 B||$1.9 B||$4.5 B||$14.2 B||$1.6 B|
|Total shares||22.4 M||19.4 M||89.1 M||146.1 M||18.6 M|
|Float shares||19.6 M||17.2 M||60.0 M||143.1 M||15.7 M|
|- Institutional holdings (%)||111.9%||109.4%||87.1%||77.8%||106.4%|
|- Insider holdings (%)||1.8%||2.2%||13.6%||2.9%||6.8%|
|Shares in short selling||0.0%||0.0%||0.0%||0.0%||0.0%|
|Friday, September 20th, 2019|
|Day range||$128.17 - $132.26|
|Average true range||$4.16|
|50d mov avg||$128.43|
|100d mov avg||$122.50|
|200d mov avg||$104.40|
Lithia Motors performanceTo measure stock performance is always good to compare with competitors or related stocks. For Lithia Motors, the comparison is made against Asbury Automotive, AutoNation, Genuine Parts, Group 1 Automotive, CarMax, Penske Automotive, Rush Enterprises and Sonic Automotive.
|GPIGroup 1 Automotiv...||10.75%||43.06%||22.83%|