Alert: Negative Investment/Fundamental Signals (4/3/24)-Lithia Motors Inc. (NYSE: LAD)

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Lithia Motors Inc. (NYSE: LAD). Extremely important negative changes in investment behavior have recently occurred: the stock’s recent price decline challenged its longer term uptrend, and its shorter term price trend turned down.

Notable negative changes in Lithia Motors Inc. (NYSE: LAD) fundamentals have recently occurred. Negative developments: the stock’s power rating fell below 50, the consensus estimate for December, 2024 decreased significantly, and the consensus estimate for December, 2025 decreased significantly. Positive development: significant quarterly earnings acceleration occurred.

In light of these highly negative signals we are reviewing our current Overall Rating of B. We would view the shares with caution pending completion of this review in the next several days.

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Current PriceTarget Research Rating

Reflecting future returns on capital that are forecasted to exceed the cost of capital, LAD is expected to continue to be a Value Builder.

Lithia Motors has a current Value Trend Rating of B (Positive). With this rating, PTR’s two proprietary measures of a stock’s current attractiveness are providing inconsistent signals. Lithia Motors has a very high Appreciation Score of 93 but a neutral Power Rating of 40, producing the Positive Value Trend Rating.

Recent Price Action

On 4/3/24, Lithia Motors Inc. (NYSE: LAD) stock rose slightly by 0.1%, closing at $284.88. This advance was accompanied by normal trading volume. The stock has performed in line with the market over the last nine months and has declined -4.1% during the last week.

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