Lithia Motors, Inc. (LAD) Stock Analysis
Recovery setup
Consumer Cyclical · Auto & Truck Dealerships
Sell if holding. Engine safety override at $293.81: Quality below floor (3.2 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.9/10. Specifically: High short interest: 16%; Elevated put/call ratio: 1.73; Below-average business quality.
Lithia Motors (Lithia and Driveway) is the largest global automotive retailer with 455 locations representing 54 brands in the US, UK, and Canada. Revenue comes from new and used vehicle sales, F&I products, and aftersales service; the company also operates Driveway (e-commerce)... Read more
Sell if holding. Engine safety override at $293.81: Quality below floor (3.2 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.9/10. Specifically: High short interest: 16%; Elevated put/call ratio: 1.73; Below-average business quality. Chart setup: Death cross but MACD improving, RSI 66. Score 4.9/10, moderate confidence.
Passes 6/8 gates (positive momentum, clean insider activity, no SEC red flags, news boost analyst 0.50, earnings proximity no date, semi cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- LOWSupplierHonda, 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 5.02MEDIUMSVP/Chief Innovation and Technology Officer George Hines transitioning out of role effective March 1, 2026; technology functions to report under CFO Tina Miller and Chief Customer Officer Dianna du Preez. Named successors; Hines to continue 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
Growth below the gate floor. Component breakdown shows what dragged the score down.static
Technicals below the gate floor. Component breakdown shows what dragged the score down.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 $293.81: Quality below floor (3.2 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.9/10. Specifically: High short interest: 16%; Elevated put/call ratio: 1.73; Below-average business quality. Chart setup: Death cross but MACD improving, RSI 66. Prior stop was $273.28. Score 4.9/10, moderate confidence.
Take-profit target: $328.14 (+11.7% upside). Prior stop was $273.28. Stop-loss: $273.28.
Quality below floor (3.2 < 4.0); Value-trap signals (2/5): Margin compression (op margin 3.8%), Material insider selling (6 sells, 0.46% of cap).
Lithia Motors, Inc. trades at a P/E of 10.2 (forward 7.2). TrendMatrix value score: 8.3/10. Verdict: Sell.
20 analysts cover LAD with a consensus score of 4.1/5. Average price target: $365.
What does Lithia Motors, Inc. do?Lithia Motors (Lithia and Driveway) is the largest global automotive retailer with 455 locations representing 54 brands...
Lithia Motors (Lithia and Driveway) is the largest global automotive retailer with 455 locations representing 54 brands in the US, UK, and Canada. Revenue comes from new and used vehicle sales, F&I products, and aftersales service; the company also operates Driveway (e-commerce) and DFC (in-house consumer financing).