Lithia Motors expands with two dealership acquisitions
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 11 2024
0mins
Should l Buy LAD?
Source: Coinmarketcap
Lithia Motors Inc. saw its stock price decline as it hit a 52-week low amid broader market weakness, with the Nasdaq-100 down 0.60% and the S&P 500 down 0.89%.
The company recently announced the acquisition of Toyota of Gallatin in Tennessee and Mercedes-Benz of Medford in Oregon, which strengthens its market position and brings its year-to-date annualized U.S. revenue to $225 million. This strategic move marks Lithia's entry into the Nashville market and coincides with its 80th anniversary, showcasing its commitment to growth. The acquisitions were financed using existing on-balance sheet capacity, reflecting the company's financial stability.
These acquisitions are expected to enhance Lithia's competitive position in high-growth markets, although the stock's current decline highlights the challenges it faces in a weak market environment.
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Analyst Views on LAD
Wall Street analysts forecast LAD stock price to rise
8 Analyst Rating
6 Buy
2 Hold
0 Sell
Strong Buy
Current: 274.480
Low
310.00
Averages
388.00
High
500.00
Current: 274.480
Low
310.00
Averages
388.00
High
500.00
About LAD
Lithia Motors, Inc. is a global automotive retailer. The Company is engaged in providing an array of products and services throughout the vehicle ownership lifecycle. The Company offers convenient experiences through its comprehensive network of physical locations, e-commerce platforms, captive finance solutions and other synergistic adjacencies. The Company operates through two segments: Vehicle Operations and Financing Operations. Its Vehicle Operations consist of all aspects of its auto merchandising and service operations, including its retail automotive, recreational vehicles, and motorcycle franchises that sell new vehicles, used vehicles, parts, repair and maintenance services, and vehicle finance and insurance products. Its Financing Operations segment provides financing to customers buying and leasing retail vehicles from its Vehicle Operations. It operates approximately 464 locations representing 52 brands across the United States, the United Kingdom, and Canada.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Lithia & Driveway to Release Q1 2026 Earnings on April 29
- Earnings Release Schedule: Lithia & Driveway will announce its Q1 2026 and full-year earnings before the market opens on April 29, 2026, reflecting the company's commitment to transparency and timeliness.
- Conference Call Details: A conference call is scheduled for the same day at 10:00 a.m. Eastern Time to discuss the earnings results, providing investors with a direct opportunity to interact with management and enhance investor relations.
- Company Background: Lithia & Driveway, the largest global automotive retailer, celebrates 80 years in business, focusing on simplifying the vehicle ownership experience through a diversified service network and e-commerce platforms, showcasing strong market competitiveness.
- Growth Potential: Operating in a massive and unconsolidated industry, LAD consistently delivers profitable growth, indicating that its flexible business model and scale advantages enable it to pursue its vision of modernizing personal transportation solutions.
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Used Vehicle Demand Remains Strong Amid Price Increases
- Price Increase Trend: Cox Automotive's Manheim Used Vehicle Value Index indicates a 6.2% year-over-year increase in used vehicle prices, reaching the highest level since summer 2023, reflecting strong market demand and tight supply conditions.
- Tight Inventory: As of March, the days' supply of used vehicles fell below 40 days, marking the lowest point since 2026, indicating increased inventory pressure faced by dealers and consumers that may impact future sales strategies.
- Sales Forecast Adjustment: Cox raised its 2023 used vehicle sales forecast from 20.3 million to 20.4 million, although a slight decline in sales is expected in the second half of the year, reflecting the ongoing demand for used vehicles amid complex market dynamics.
- Shifting Consumer Preferences: With high new vehicle prices, more U.S. consumers are opting for used vehicles, and Cox anticipates the new vehicle market will reach approximately 15.8 million units this year, further driving growth in the used vehicle market.
See More
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Company Overview: Lithia Motors Inc. is a prominent automotive retailer in the United States.
Stock Price Adjustment: Barclays has reduced the target price for Lithia Motors' stock from $380 to $370.
See More
Lithia Motors and Apple Options Trading Volume Surge
- Lithia Motors Options Volume: Lithia Motors Inc (Ticker: LAD) has seen an options volume of 6,518 contracts today, equating to approximately 651,800 underlying shares, which represents a significant 183% of its average daily trading volume of 356,175 shares over the past month.
- High Volume Put Options: Notably, the $250 strike put option for LAD has seen particularly high activity with 3,750 contracts traded today, representing about 375,000 underlying shares, indicating market attention on potential price fluctuations.
- Apple Options Activity: Concurrently, Apple Inc (Ticker: AAPL) has recorded an options volume of 635,253 contracts today, translating to approximately 63.5 million underlying shares, which is 156.7% of its average daily trading volume of 40.5 million shares over the past month.
- AAPL Put Option Interest: Among AAPL options, the $245 strike put option has garnered significant interest with 64,712 contracts traded today, representing around 6.5 million underlying shares, reflecting investor expectations regarding the stock's future performance.
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Market Dynamics and Investment Strategy Recap
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- Oil Price Volatility and Market Response: The International Energy Agency announced plans to release 400 million barrels of oil from reserves to address supply disruptions, providing temporary market relief, yet oil prices still rose on Wednesday, indicating ongoing market concerns about energy supply, with Jim Cramer noting a strategy to deploy cash during oversold conditions.
- CrowdStrike Stock Outlook: CrowdStrike shares rose roughly 1% in the morning, but Jim argued the stock should be trading significantly higher due to increasing discussions around AI agents and potential security breaches, particularly with the open-source AI agent OpenClaw gaining popularity in China, emphasizing CrowdStrike's technological edge in this area.
- Eli Lilly Price Target Increase: Wolfe Research raised its price target on Eli Lilly from $1,250 to $1,325, implying about a 32% upside, and while Jim noted investors might overlook this bullish note amid geopolitical uncertainty and inflation concerns, he agreed with the massive market opportunity for Lilly's drug, highlighting that the company is prepared to meet demand with its factories ready.
See More
Lithia & Driveway Donates $500,000 to Automotive Education Programs
- Donation Amount: Lithia & Driveway announced a donation of over $500,000 to automotive programs nationwide, with 11 colleges each receiving $50,000 to support student success and career development.
- Support Details: The funds will be used for new equipment, technology, and curriculum needs, aimed at enhancing students' career readiness while providing hands-on experiences alongside Lithia dealers and employees.
- Community Engagement: Nearly all Lithia dealerships in the supported communities have interacted directly with students over the past month, participating in networking events and on-site check presentations, strengthening ties between the company and educational institutions.
- Corporate Philosophy: CEO Bryan DeBoer emphasized that supporting automotive programs is a natural extension of the company's growth philosophy centered on people, aiming to cultivate future employees and give back to the community.
See More
Lithia & Driveway to Release Q1 2026 Earnings on April 29
- Earnings Release Schedule: Lithia & Driveway will announce its Q1 2026 and full-year earnings before the market opens on April 29, 2026, reflecting the company's commitment to transparency and timeliness.
- Conference Call Details: A conference call is scheduled for the same day at 10:00 a.m. Eastern Time to discuss the earnings results, providing investors with a direct opportunity to interact with management and enhance investor relations.
- Company Background: Lithia & Driveway, the largest global automotive retailer, celebrates 80 years in business, focusing on simplifying the vehicle ownership experience through a diversified service network and e-commerce platforms, showcasing strong market competitiveness.
- Growth Potential: Operating in a massive and unconsolidated industry, LAD consistently delivers profitable growth, indicating that its flexible business model and scale advantages enable it to pursue its vision of modernizing personal transportation solutions.
See More
Used Vehicle Demand Remains Strong Amid Price Increases
- Price Increase Trend: Cox Automotive's Manheim Used Vehicle Value Index indicates a 6.2% year-over-year increase in used vehicle prices, reaching the highest level since summer 2023, reflecting strong market demand and tight supply conditions.
- Tight Inventory: As of March, the days' supply of used vehicles fell below 40 days, marking the lowest point since 2026, indicating increased inventory pressure faced by dealers and consumers that may impact future sales strategies.
- Sales Forecast Adjustment: Cox raised its 2023 used vehicle sales forecast from 20.3 million to 20.4 million, although a slight decline in sales is expected in the second half of the year, reflecting the ongoing demand for used vehicles amid complex market dynamics.
- Shifting Consumer Preferences: With high new vehicle prices, more U.S. consumers are opting for used vehicles, and Cox anticipates the new vehicle market will reach approximately 15.8 million units this year, further driving growth in the used vehicle market.
See More
LITHIA MOTORS INC.: BARCLAYS LOWERS TARGET PRICE FROM $380 TO $370
Company Overview: Lithia Motors Inc. is a prominent automotive retailer in the United States.
Stock Price Adjustment: Barclays has reduced the target price for Lithia Motors' stock from $380 to $370.
See More
Lithia Motors and Apple Options Trading Volume Surge
- Lithia Motors Options Volume: Lithia Motors Inc (Ticker: LAD) has seen an options volume of 6,518 contracts today, equating to approximately 651,800 underlying shares, which represents a significant 183% of its average daily trading volume of 356,175 shares over the past month.
- High Volume Put Options: Notably, the $250 strike put option for LAD has seen particularly high activity with 3,750 contracts traded today, representing about 375,000 underlying shares, indicating market attention on potential price fluctuations.
- Apple Options Activity: Concurrently, Apple Inc (Ticker: AAPL) has recorded an options volume of 635,253 contracts today, translating to approximately 63.5 million underlying shares, which is 156.7% of its average daily trading volume of 40.5 million shares over the past month.
- AAPL Put Option Interest: Among AAPL options, the $245 strike put option has garnered significant interest with 64,712 contracts traded today, representing around 6.5 million underlying shares, reflecting investor expectations regarding the stock's future performance.
See More
Market Dynamics and Investment Strategy Recap
- Inflation Data Impact: On Wednesday, the S&P 500 drifted lower as investors weighed key consumer inflation data against the ongoing U.S.-Iran war and volatile oil prices; although the February CPI report met expectations, concerns about future data intensified, particularly regarding the surge in energy prices driven by the war not reflected in current figures.
- Oil Price Volatility and Market Response: The International Energy Agency announced plans to release 400 million barrels of oil from reserves to address supply disruptions, providing temporary market relief, yet oil prices still rose on Wednesday, indicating ongoing market concerns about energy supply, with Jim Cramer noting a strategy to deploy cash during oversold conditions.
- CrowdStrike Stock Outlook: CrowdStrike shares rose roughly 1% in the morning, but Jim argued the stock should be trading significantly higher due to increasing discussions around AI agents and potential security breaches, particularly with the open-source AI agent OpenClaw gaining popularity in China, emphasizing CrowdStrike's technological edge in this area.
- Eli Lilly Price Target Increase: Wolfe Research raised its price target on Eli Lilly from $1,250 to $1,325, implying about a 32% upside, and while Jim noted investors might overlook this bullish note amid geopolitical uncertainty and inflation concerns, he agreed with the massive market opportunity for Lilly's drug, highlighting that the company is prepared to meet demand with its factories ready.
See More
Lithia & Driveway Donates $500,000 to Automotive Education Programs
- Donation Amount: Lithia & Driveway announced a donation of over $500,000 to automotive programs nationwide, with 11 colleges each receiving $50,000 to support student success and career development.
- Support Details: The funds will be used for new equipment, technology, and curriculum needs, aimed at enhancing students' career readiness while providing hands-on experiences alongside Lithia dealers and employees.
- Community Engagement: Nearly all Lithia dealerships in the supported communities have interacted directly with students over the past month, participating in networking events and on-site check presentations, strengthening ties between the company and educational institutions.
- Corporate Philosophy: CEO Bryan DeBoer emphasized that supporting automotive programs is a natural extension of the company's growth philosophy centered on people, aiming to cultivate future employees and give back to the community.
See More
