Lithia Motors Inc . (NYSE:LAD) stock soared to a 52-week high, reaching $342.45, as the company continues to ride a wave of strong sales and strategic acquisitions. This impressive milestone reflects a significant uptrend in the automotive retailer's performance, with a remarkable 1-year change of 40.84%. Investors have shown increased confidence in Lithia Motors, bolstered by the company's aggressive expansion strategy and its ability to adapt to the evolving automotive market. The stock's ascent to this new high underscores the robust health of the company and its potential for sustained growth in the competitive auto retail industry.
In other recent news, Lithia Motors has been the subject of several analyst adjustments following their third-quarter earnings report. The company reported an adjusted earnings per share (EPS) of $8.21, surpassing both the estimated $8.17 and the consensus of $7.59, and a record Q3 revenue of $9.2 billion, marking an 11% year-over-year increase. Jefferies analyst Bret Jordan raised the price target for Lithia Motors to $400 from the previous target of $340, maintaining a "Buy" rating. Similarly, Stephens increased its price target for Lithia Motors to $405, retaining an Overweight rating.
These adjustments were a response to Lithia Motors' strong performance and future prospects, as indicated by the company's recent acquisitions, including three stores from Duval Motor Company. These acquisitions are expected to contribute nearly $6 billion in annual revenues. The company also highlighted its achievement of $200 million in annualized cost savings and a reduction in adjusted SG&A to 66% of gross profit.
These recent developments demonstrate Lithia Motors' commitment to a balanced capital allocation strategy and optimism about its future growth and profitability. The company's prime portfolio has shown resilience despite challenges in the subprime segment, with slight increases in delinquencies but well-managed provisions.
InvestingPro Insights
Lithia Motors Inc.'s (LAD) recent stock performance aligns with several key metrics and insights from InvestingPro. The company's stock is currently trading near its 52-week high, with a price that is 99.79% of its highest point over the past year. This corroborates the article's mention of LAD reaching a new 52-week high of $342.45.
InvestingPro data reveals that Lithia Motors has demonstrated strong returns, with a 41.74% price total return over the past year, closely matching the 40.84% 1-year change mentioned in the article. Additionally, the company has shown impressive 6-month and 3-month price total returns of 34.62% and 28.15% respectively, indicating sustained momentum.
InvestingPro Tips highlight that Lithia Motors has raised its dividend for 11 consecutive years and has maintained dividend payments for 15 consecutive years. This consistent dividend growth may be contributing to investor confidence and the stock's upward trajectory.
It's worth noting that InvestingPro offers 14 additional tips for Lithia Motors, providing investors with a more comprehensive analysis of the company's financial health and market position.
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