Lithia Motors, Inc. (LAD)

Over the past six months, Lithia Motors, Inc. stock has experienced fluctuations, including a 4.79% decrease over the past 30 days and a 9.33% fall over the past 12 months as of January 26, 2026. Despite this, analysts have maintained a "Buy" rating. Lithia Motors is shifting its capital allocation strategy from acquisitions towards dividends and aggressive share repurchases. Q3-2025 results showed a 5% revenue growth and a 17% increase in adjusted EPS, with buybacks totaling 5.1% of shares. Preliminary Q2 2025 results indicated an expected net income per diluted share increase of between 23% and 27% compared to Q2 2024, along with share repurchases of 1.5% of shares outstanding during the quarter and 3.0% year-to-date. Lithia Motors also reported beating analysts' consensus estimates for EPS in the previous quarter, with $9.50 EPS against an $8.53 estimate.

Information directly detailing the demand seasonality for Lithia Motors, Inc.'s products and services is limited. Management anticipates a minimal impact from tariffs on the after-sales business due to the inelastic demand for vehicle maintenance and repairs, suggesting stable demand for after-sales services throughout the year. The company also emphasizes affordability and competitive pricing in this segment.

Lithia Motors, Inc. is an American automotive dealership group providing personal transportation solutions. It operates in the Consumer Discretionary sector, offering new and used vehicles, financing, insurance, aftersales services, and parts through Domestic, Import, and Luxury segments. Lithia also has captive finance solutions via Driveway Finance Corporation and e-commerce platforms like Driveway. As of 2025, Lithia is the largest automotive retailer in the United States by revenue.

As of December 31, 2024, Lithia Motors, Inc. operates 459 dealership locations across the United States, Canada, and the United Kingdom. In 2022, it operated 296 stores, and as of 2025, it had 298 stores in the United States, 14 in Canada, and 170 in the United Kingdom. The company also reported operating in 22 states with 209 locations.

In the past year, Lithia Motors, Inc. has focused on providing a premier customer experience and fostering long-term relationships through honest and transparent vehicle sales and service. The company aims to build "magnetic brand loyalty" across its stores and through its e-commerce platform, Driveway. Lithia Motors also highlights its commitment to eco-friendly practices, including the use of recycled plastics in new electric vehicles and efforts to cut carbon emissions across its business operations.

Lithia Motors, Inc. has a significant institutional ownership base, with 841 institutional owners and shareholders. Major institutional owners include BlackRock, Inc., Abrams Capital Management, L.p., and Vanguard Group Inc. Mutual Funds & ETFs collectively hold 51.50% of shares outstanding, while other institutional investors hold 48.50%. Individual investors, the board of directors, and executive management also contribute to the ownership base.