Lithia Motors expands with two dealership acquisitions
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 11 2024
0mins
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: 309.020
Low
310.00
Averages
388.00
High
500.00
Current: 309.020
Low
310.00
Averages
388.00
High
500.00
About LAD
Lithia Motors, Inc. is a global automotive retailer providing a range of products and services throughout the vehicle ownership lifecycle. The Company's products and services are offered through its comprehensive network of physical locations, e-commerce platforms, captive finance solutions, fleet management offerings, and other synergistic adjacencies. The Company’s segments include Vehicle Operations and Financing Operations. Its Vehicle Operations segment consists of all aspects of its auto merchandising and aftersales operations, excluding financing provided by its Financing Operations. The Company's Financing Operations segment provides financing to customers buying and leasing retail vehicles from its Vehicle Operations, as well as leasing vehicles from its fleet management services provider. Its Driveway and GreenCars brands and online customer portal complement its in-store experiences in the United States and provide platforms that serve as its e-commerce home solutions.
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.
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