LAD stock: buy or sell?

LAD stock price: $130.16 0.18% At close on September 20th, 2019

Updated on:
September 20th, 2019

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Shares of Lithia Motors closed today at $130.16 and stayed constant a tight 0.18%.

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.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean LAD will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

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.
Is LAD a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-13Bank of AmericaNeutralUnderperform
2019-8-2Morgan Stanleyn/aOverweight
2019-7-9Morgan Stanleyn/aOverweight
2019-7-9JPMorgan Chase & Co.n/aOverweight
2019-7-8Buckingham ResearchBuyNeutral
2019-7-25Craig Hallumn/aBuy
2019-5-6Morgan Stanleyn/aOverweight
2019-4-26Bank of AmericaBuyNeutral
2019-4-16Morgan StanleyOverweightOverweight
2019-2-19JPMorgan Chase & Co.n/aOverweight
2019-2-13Seaport Global Securitiesn/aBuy

LAD stock analysis

Daily outlook

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.

LAD stock chart (daily)

Weekly outlook

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 chart (weekly)

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 $124.30

Predicting 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:
LAD stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-8-2Morgan StanleyRaises Target$129.00$144.0011.6%
2019-7-9Morgan StanleyRaises Target$128.00$129.000.8%
2019-7-9JPMorgan Chase & Co.Raises Target$117.00$122.004.3%
2019-7-8Buckingham ResearchDowngrades$120.00$125.004.2%
2019-7-25Craig HallumReiterates$125.00$145.0016%
2019-5-6Morgan StanleyRaises Target$117.00$128.009.4%
2019-4-16Morgan StanleyRaises Target$99.00$104.005.1%
2019-2-19JPMorgan Chase & Co.Initiatesn/a$112.00-
2019-2-13Seaport Global SecuritiesInitiatesn/a$110.00-
(in average)$119.30$124.304.0%
The price target for Lithia Motors stock is $124.30, moving in a range between $145.00 and $104.00. In average, analysts' outlook on LAD price target is positive, increasing the prediction by a 4.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

After posting its last earnings report on May, Lithia Motors rocketed a great 14.19%. Unfortunately, reported EPS is not yet available in our database.
LAD earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a2.12n/a
2017-Q32017-10-252.372.18-8.0%
2017-Q42018-02-142.092.152.9%
2018-Q12018-04-252.42.07-13.8%
2018-Q22018-07-252.982.52-15.4%
2018-Q32018-10-242.582.839.7%
2018-Q42019-02-132.422.576.2%
2019-Q12019-05-132.17n/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared 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%

LAD annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$4,010 M-$105 M2.6%-
2014$5,390 M34.42%$139 M2.6%31.85%
2015$7,864 M45.90%$183 M2.3%31.92%
2016$8,678 M10.35%$197 M2.3%7.68%
2017$10,087 M16.23%$245 M2.4%24.43%
2018$11,821 M17.20%$266 M2.2%8.36%
TTM $12,011 M1.61%$270 M2.2%1.63%

Quarterly financial results

Lithia 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.
LAD quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$2,470 M-$53 M2.2%-
2017-Q3$2,680 M8.50%$52 M1.9%-2.46%
2017-Q4$2,703 M0.86%$89 M3.3%72.30%
2018-Q1$2,660 M-1.60%$52 M2.0%-41.77%
2018-Q2$3,097 M16.43%$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 ownership

When 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:

LADABGANGPCGPI
Market cap$2.9 B$1.9 B$4.5 B$14.2 B$1.6 B
Total shares22.4 M19.4 M89.1 M146.1 M18.6 M
Float shares19.6 M17.2 M60.0 M143.1 M15.7 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 selling0.0%0.0%0.0%0.0%0.0%

LAD summary

Friday, September 20th, 2019
Open$130.16
Close$130.16
Day range$128.17 - $132.26
Previous close$129.92
Session gain0.18%
Average true range$4.16
50d mov avg$128.43
100d mov avg$122.50
200d mov avg$104.40
Daily pattern
Weekly pattern

Lithia Motors performance

To 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.
Stock3m6m12m
LADLithia Motors9.38%52.14%50.58%
ABGAsbury Automotive22.92%50.23%39.09%
ANAutoNation18.79%50.46%13.79%
GPCGenuine Parts-5.44%-7.83%-0.66%
GPIGroup 1 Automotiv...10.75%43.06%22.83%
KMXCarMax-1.18%37.32%8.26%
PAGPenske Automotive-1.93%9.46%-5.82%
RUSHARush Enterprises11.64%-2.79%-5.30%
SAHSonic Automotive27.54%109.67%40.50%

Lithia Motors competitors

We selected a few stocks to conform a list of Lithia Motors competitors to review if you are interested in investing in LAD: