Lithia Motors Inc Reaches 20-Day High on Buyback News
Lithia Motors Inc's stock rose by 3.01%, reaching a 20-day high as the company announced its share repurchase program.
The company has repurchased nearly 875,000 shares this quarter, investing $274 million, which reflects its confidence in profitability and cash flows. Year-to-date, Lithia has repurchased 2.98 million shares for nearly $933 million, representing 11.3% of outstanding shares.
This proactive approach to returning capital while the stock trades below intrinsic value is expected to enhance shareholder value and strengthen its market position, especially with the recent acquisition of Fines Ford in Canada, projected to add $100 million in annual revenue.
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- Retail Stocks on Sale: Retail stocks are currently undervalued, presenting a potential opportunity for investors looking for bargains.
- Investment Opportunity: The decline in retail stock prices may attract bargain hunters seeking to capitalize on lower valuations.
- Earnings Release Schedule: Lithia & Driveway will release its Q4 2025 and full-year earnings before the market opens on February 11, 2026, demonstrating the company's commitment to transparency and timeliness.
- Conference Call Timing: The company plans to hold a conference call at 10:00 a.m. Eastern Time on the same day to discuss the earnings results in depth, enhancing communication with shareholders.
- Participation Details: Investors can participate in the call by dialing (877) 407-8029 or by visiting the company’s website to listen live or access a replay, reflecting the company's emphasis on investor relations.
- Company Background: Lithia & Driveway is the largest global automotive retailer, offering a diverse range of products and services, committed to providing simple, convenient, and transparent experiences throughout the vehicle ownership lifecycle, showcasing its leadership in a competitive market.

- Earnings Release Schedule: Lithia & Driveway will release its Q4 2025 and full-year earnings before the market opens on February 11, 2026, demonstrating the company's commitment to transparency and timeliness.
- Conference Call Timing: A conference call is scheduled for the same day at 10:00 a.m. Eastern Time, accessible by calling (877) 407-8029, highlighting the company's emphasis on investor communication.
- Company Overview: Lithia & Driveway is the largest global automotive retailer, offering a diverse range of products and services throughout the vehicle ownership lifecycle, showcasing its leadership in the automotive industry.
- Business Model Advantages: The company ensures consistent profitable growth through a diversified network of physical locations, e-commerce platforms, and financial solutions, reflecting its flexibility and scale advantages in a competitive market.
- Retail Sales Growth: According to the U.S. Census Bureau, retail sales rose 0.6% month-over-month in November and were up 3.3% year-over-year, exceeding economists' expectations of 0.4%, indicating consumer spending resilience that could positively impact GDP.
- Strong Clothing Sales: Clothing stores saw a 7.5% year-over-year increase, providing positive signals for mall retailers like Gap and Urban Outfitters, suggesting enhanced consumer potential during the holiday season.
- Outstanding Nonstore Retail Performance: The nonstore retail category outperformed with a 7.2% year-over-year increase in November, crucial for e-commerce players like Amazon and Wayfair, reflecting strong demand during the holiday shopping season.
- Underperformance in Auto Dealers: The auto dealer group experienced a 1.1% year-over-year decline in November, indicating challenges for the sector that may affect the performance of related companies.
Carvana's Market Position: Carvana's share price has surged significantly, leading to its inclusion in the S&P 500 and surpassing the market values of major automakers like Ford and GM, with an enterprise value exceeding $100 billion.
Business Model Insights: The company operates as a vertically integrated lender and securitizer, focusing on subprime auto loans, which contributes to its profitability despite the risks associated with lending to lower-credit borrowers.
Loan Terms and Risks: Carvana's loans often have extended terms, increasing default risk as the value of used cars depreciates over time, raising concerns about the sustainability of its business model in a challenging credit environment.
Investment Considerations: While Carvana has shown impressive recovery and growth, potential investors are cautioned about the high valuation and risks associated with its reliance on subprime lending, suggesting a careful approach to stock ownership.
Lithia Motors Inc Options Activity: Lithia Motors Inc (LAD) has seen a trading volume of 1,514 options contracts today, equating to about 151,400 underlying shares, which is 51.5% of its average daily trading volume over the past month.
High Volume Call Option for LAD: The $390 strike call option for LAD, expiring on March 20, 2026, has particularly high activity with 1,000 contracts traded, representing around 100,000 underlying shares.
PayPal Holdings Inc Options Activity: PayPal Holdings Inc (PYPL) has recorded an options trading volume of 79,547 contracts today, representing approximately 8.0 million underlying shares, also 51.5% of its average daily trading volume over the past month.
High Volume Call Option for PYPL: The $63 strike call option for PYPL, expiring on December 05, 2025, has seen significant trading with 9,172 contracts exchanged, representing about 917,200 underlying shares.










