Lumida
/LAD
⌘K
Lithia Motors Inc

Lithia Motors Inc

LAD
$358.02USD↓-2.22%-8.13 today

MARKET CAP

7.9B

P/E (TTM)

12.5x

FWD P/E

—

DAY RANGE

$356 – $375

52W RANGE

$240
$439

AI Summary

Stalk
Sell NowMedium

LAD has broken key near-term support at the 50-day SMA and short EMAs, confirming a medium-term bearish posture. With declining EMAs and a support failure pattern, price action favors downside continuation. Execution should occur now, selling into the broken support cluster around the prior range low (~357–360) on any weakness or brief retest. A reclaim of the short EMAs or sustained recovery back above the 50-day SMA would invalidate this bearish medium-term bias.

  • ↑Q2 revenue $9.8B (+2% YoY) and adjusted EPS $10.03 (+9% YoY) reflect solid execution
  • ↑Dividend hiked 23% to $0.70/share; $242M repurchased (3.7% of shares) supports shareholders
  • ↓Gross profit fell 2.7% in Q2 as GPU compression outpaced cost cuts
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

Lithia Motors, Inc. (NYSE: LAD) is a leading player in the automotive retail industry, operating a diverse network of dealerships across the U.S. and Canada, with a strong focus on enhancing customer experiences through integrated physical and digital platforms. The company is part of a growing trend in automotive retail, leveraging technology and operational efficiencies to create a robust ecosystem that includes sales, financing, and after-sales services, while capitalizing on a strong demand for used vehicles amid shifting consumer preferences

Bull says

  • ↑Q2 revenue $9.8B (+2% YoY) and adjusted EPS $10.03 (+9% YoY) reflect solid execution
  • ↑Dividend hiked 23% to $0.70/share; $242M repurchased (3.7% of shares) supports shareholders
  • ↑Pinewood AI integration poised to deliver a potential 10× efficiency multiplier
  • ↑Financial services income up >70% YoY via record originations at Driveway Finance
  • ↑After-sales segment drives 42.2% of gross profit, diversifying revenue stream
  • ↑Strong earnings yield, solid book-to-price, and high institutional ownership suggest undervaluation

Bear says

  • ↓Gross profit fell 2.7% in Q2 as GPU compression outpaced cost cuts
  • ↓Same-store revenues declined 1.6%, indicating core operations under pressure
  • ↓Profitability factors weak, pointing to inconsistent profit generation
  • ↓Floorplan debt $6.39B and elevated volatility deter conservative investors
  • ↓Negative dividend yield score signals potential policy uncertainty
  • ↓EV mandates and regulatory shifts may increase costs and operational complexity

Investment themes with LAD

Buybacks↓ -0.29%

Companies repurchasing their own shares

C · JCI · WFC

Earnings Call · Q2 2025 · Mgmt. Guidance

Updated 07-31-2026neutral

Transcript signals

Bull points

  • we sold over 25.5% of our vehicles through omnichannel sources with digital support, or 45,000 vehicles in the quarter, which is up considerably from where we've been in the past.
  • our driveway sales, continues to be over 97% new customers to the ecosystem, which is quite effective, and we continue to drive that channel.
  • we're really starting to see separation on preferential selection from some of the key metrics like delinquency and some of the default rates. So we expect that preferential selection to continue as we go forward and hopefully see the results of that as we go forward in the market and our financials.

Bear points

  • that 2021 vintage, both for us as well as the market, really was one that's not performing as well as we all, I think, would hope in the industry and the segments.
  • same store metrics have underperformed your peer group
  • If you want to view the world as that, go ahead. It's one part of who we are as an organization
Read full transcript analysis ›