Lithia Motors, Inc. (LAD) Stock Analysis
Consumer Cyclical · Auto & Truck Dealerships
Sell if holding. Engine safety override at $264.89: Quality below floor (2.7 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.7/10 and A.R:R 3.3:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 16%; Elevated put/call ratio: 1.75; Below-average business quality. (Note: Risk dimension 3.3/10 and A.R:R 3.3:1 are different metrics that happen to read the same number here.)
Lithia and Driveway is the largest global automotive retailer, operating 455 locations in the United States, United Kingdom, and Canada representing 54 brands. Revenue comes from new and used vehicle sales, financing and insurance, and aftersales services through franchise... Read more
Sell if holding. Engine safety override at $264.89: Quality below floor (2.7 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.7/10 and A.R:R 3.3:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 16%; Elevated put/call ratio: 1.75; Below-average business quality. (Note: Risk dimension 3.3/10 and A.R:R 3.3:1 are different metrics that happen to read the same number here.) Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Score 4.7/10, moderate confidence.
Passes 7/9 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 71d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and death cross (50MA < 200MA). Suitability: moderate.
Recent Developments — Lithia Motors, Inc.
Latest news
- JP Morgan Maintains Neutral on Lithia Motors, Raises Price Target to $325 — benzinga May 7, 2026 neutral
- Citigroup Maintains Buy on Lithia Motors, Raises Price Target to $365 — benzinga May 1, 2026 positive
- Wells Fargo Maintains Equal-Weight on Lithia Motors, Raises Price Target to $305 — benzinga Apr 30, 2026 positive
- What's Going On With Lithia Motors Stock Wednesday? — benzinga Apr 29, 2026 neutral
- Earnings Scheduled For April 29, 2026 — benzinga Apr 29, 2026 neutral
Generated 2026-05-20T21:06:21Z.
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMCustomerHonda, Toyota, Ford, BMW, and Stellantis25%10-K Item 1A: 'New vehicles from five manufacturers, Honda, Toyota, Ford, BMW, and Stellantis, represent 25% of our sales.'
Material Events(8-K, last 90d)
- 2026-02-13Item 5.02LOWGeorge Hines, SVP Chief Innovation and Technology Officer, transitioning effective March 1, 2026 as part of IT realignment. Core technology functions will report to CFO Tina Miller and CCO Dianna du Preez. Hines remains in non-executive role.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer
Rating Breakdown
3 floor-breakers·1 ceiling hit
Growth below the gate floor. Component breakdown shows what dragged the score down.static
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Quality below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $264.89: Quality below floor (2.7 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.7/10 and A.R:R 3.3:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 16%; Elevated put/call ratio: 1.75; Below-average business quality. (Note: Risk dimension 3.3/10 and A.R:R 3.3:1 are different metrics that happen to read the same number here.) Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Prior stop was $252.30. Score 4.7/10, moderate confidence.
Take-profit target: $334.56 (+26.3% upside). Prior stop was $252.30. Stop-loss: $252.30.
Quality below floor (2.7 < 4.0).
Lithia Motors, Inc. trades at a P/E of 9.2 (forward 6.5). TrendMatrix value score: 8.8/10. Verdict: Sell.
20 analysts cover LAD with a consensus score of 4.1/5. Average price target: $372.
What does Lithia Motors, Inc. do?Lithia and Driveway is the largest global automotive retailer, operating 455 locations in the United States, United...
Lithia and Driveway is the largest global automotive retailer, operating 455 locations in the United States, United Kingdom, and Canada representing 54 brands. Revenue comes from new and used vehicle sales, financing and insurance, and aftersales services through franchise agreements with all major manufacturers.