Lithia Motors Inc. ($LAD) Stock Forecast: Down 5.1% Today

What is Lithia Motors Inc.?

LAD, or Lithia Motors, is a leading automotive retailer in the United States, offering a wide range of new and used vehicles across various brands.

Why is Lithia Motors Inc. going down?

LAD stock is down 5.1% on Jul 19, 2024 14:51

• Lithia Motors (LAD) experienced a bearish movement today despite the overall bullish trend in small-cap stocks, particularly in the Russell 2000 index.
• The surge in small-cap stocks was fueled by expectations of an interest rate-cutting cycle by the Federal Reserve, making investors eager to gain more exposure to this segment of the market.
• However, it's possible that specific company-related factors or industry dynamics impacted Lithia Motors negatively, leading to its bearish performance despite the positive market sentiment towards small-cap stocks.
• Investors should closely monitor any developments within the automotive retail sector and company-specific news to better understand the reasons behind LAD's bearish movement in an otherwise bullish market for small-cap stocks.

LAD Price Chart

LAD News

3 Russell 2000 Stocks to Buy Now: Q3 Edition

On July 16, CNBC reported, “Small-cap stocks are on a tear right now.” The financial news channel’s website noted that, during the preceding week, the category became the market leader, at least temporarily. Indeed, the Russell 2000 index, made up of small-cap names, hit its highest level since January 2022 on July 16. With most on the Street betting that the Federal Reserve will start an interest rate-cutting cycle in September, many large investors are anxious to get more exposure to small-cap stocks. That’s because those names, due to the fact that many lose money and have high debt loads, are seen as among the biggest beneficiaries of lower rates. Also importantly, Joshua Brown, the CEO of Ritholtz Wealth Management and a CNBC commentator, recently said on the channel that the rally of small-cap stocks could last a month. But since the rate-cut cycle will likely last many months and a high percentage of small-cap names have been beaten down tremendously, I think the surge could easily last until the end of this year. With that said, here are three Russell 2000 stocks to buy now.

https://investorplace.com/2024/07/3-russell-2000-stocks-to-buy-now-q3-edition/

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Lithia Motors Inc. Price History

15.01.2024 - LAD Stock was up 5.9%

• Lithia Motors achieved record-breaking revenues of over $31 billion for the year, with a strong performance in the fourth quarter.
• The company's earnings call highlighted a growth in new vehicle retail revenues, which increased by 21.4% year-on-year.
• Although sales in the fourth quarter fell slightly short of analyst expectations, Lithia Motors delivered positive earnings and revenue surprises, indicating strong performance.
• Possible reasons for the bullish market movement:
• The company's record-breaking revenues and strong fourth-quarter performance demonstrate its ability to generate significant sales and profits.
• The increase in new vehicle retail revenues suggests strong consumer demand for cars, contributing to the positive market sentiment.
• The positive earnings surprises may have boosted investor confidence in the company's future prospects, leading to an increase in the stock price.

17.10.2023 - LAD Stock was up 5.8%

• The bullish movement in LAD's stock can be attributed to the company's announcement of a dividend payout of $0.50 per share, which is a positive signal for investors and can attract more buyers.
• The upgrade of LAD's Relative Strength (RS) Rating from 75 to 82 also indicates positive momentum and market confidence in the stock.
• The overall strength in the automotive industry, with increased demand for vehicles, could also be a contributing factor to the bullish movement in LAD's stock.

11.03.2024 - LAD Stock was down 5.1%

• The bearish movement in LAD stock today may be attributed to the following factors:
• Ford slowing down its push into electric vehicles, raising concerns about the growth potential of the electric vehicle market and affecting sentiment towards other automotive companies like LAD.
• China's Nio expanding battery swap services to gain an edge in EV infrastructure, highlighting increased competition in the electric vehicle sector and causing investors to reassess their positions in related stocks.
• The announcement of Andretti F1 opening a new base at Silverstone potentially shifting investor focus to other automotive companies or sectors, diverting attention from LAD and leading to a decline in its stock price.

06.11.2023 - LAD Stock was down 5.9%

• The bearish movement in LAD's stock could be attributed to the overall market sentiment and the lack of positive news or developments specific to the company.

15.04.2024 - LAD Stock was down 5.3%

• The bearish movement in LAD's stock could be due to investors shifting their focus towards an investment news from Mitra Chem, which might have diverted attention away from the automotive sector.
• The addition of Elan Frantz to Mitra Chem's board of directors could have sparked excitement among investors, leading them to reallocate their funds from LAD to Mitra Chem.
• This movement could also indicate a broader trend of investors rotating out of traditional automotive stocks and into emerging technology or green energy sectors, impacting LAD negatively.

04.05.2024 - LAD Stock was up 7.9%

• Lithia & Driveway's Board of Directors approved a $350 million extension to the share repurchase program, indicating confidence in the company's future and potentially bolstering investor confidence.
• The favorable announcement regarding the increased share buyback authorization likely stimulated higher demand for LAD stock, resulting in a price increase.
• The market's optimistic response to this development implies that investors interpret the decision as a strategic measure to improve shareholder value and signal the company's robust financial position.

25.03.2024 - LAD Stock was up 5.2%

• In Q1 2024, Lithia Motors reported a significant 23% year-on-year increase in revenue, amounting to $8.56 billion, exceeding what analysts had predicted.
• Despite the revenue surge, the company's profits declined due to market adjustments, potentially influencing its earnings per share (EPS) performance.
• The robust revenue growth and steady sales of both new and used vehicles may have been factors contributing to the positive movement of LAD stock today.
• Investors are displaying optimism about the company's performance, choosing to focus on the revenue growth and disregarding the decline in profits, consequently propelling the stock price upwards.

02.03.2024 - LAD Stock was down 5.1%

• There was a 5.91% increase in LAD's short percent of float, suggesting a rise in bearish sentiment among investors.
• 2.65 million shares were sold short, equivalent to 10.94% of all regular shares available for trading, indicating a notable increase in bearish bets against the company.
• The surge in short interest could be attributed to concerns about the company's future performance or broader market conditions impacting the automotive industry.
• The negative market sentiment towards Lithia Motors likely influenced the stock's bearish movement today.

03.05.2024 - LAD Stock was up 3.7%

• Lithia Motors (LAD) experienced a strong bullish movement today, potentially driven by positive market sentiment towards the automotive industry.
• Statements regarding anti-American bias denial by the McLaren boss may have influenced a positive outlook on international partnerships in the automotive sector, indirectly benefiting companies like Lithia Motors.
• Investors may interpret the lack of bias as a signal of potential future collaborations, which could boost industry confidence and consequently increase LAD's stock price.
• In summary, the bullish trend in LAD could be partially attributed to the optimistic industry sentiment and the affirmation of equitable practices in the global automotive market.

11.06.2024 - LAD Stock was up 5.0%

• The bullish movement in Lithia Motors (LAD) stock today could be attributed to the spike in the options market, indicating increased investor interest and potential positive sentiment towards the company's future performance.
• The options market activity suggests that investors are optimistic about Lithia Motors' growth prospects and may be anticipating a rise in the stock price.
• This surge in bullish sentiment could be driven by factors such as strong financial performance, strategic acquisitions, or industry trends favoring automotive retailers like Lithia Motors.

12.06.2024 - LAD Stock was up 5.0%

• Lithia Motors (LAD) experienced a strong bullish movement today, potentially benefiting from the negative news surrounding Tesla.
• The delay in Tesla's robotaxi unveiling may have shifted investor focus towards traditional automotive retailers like Lithia Motors, leading to increased interest and buying activity in LAD stock.
• This movement showcases how news related to industry disruptors like Tesla can sometimes have a positive impact on more established players in the market, driving their stock prices higher.

19.06.2024 - LAD Stock was down 5.1%

• Lithia Motors (LAD) experienced a bearish movement today despite the overall bullish trend in small-cap stocks, particularly in the Russell 2000 index.
• The surge in small-cap stocks was fueled by expectations of an interest rate-cutting cycle by the Federal Reserve, making investors eager to gain more exposure to this segment of the market.
• However, it's possible that specific company-related factors or industry dynamics impacted Lithia Motors negatively, leading to its bearish performance despite the positive market sentiment towards small-cap stocks.
• Investors should closely monitor any developments within the automotive retail sector and company-specific news to better understand the reasons behind LAD's bearish movement in an otherwise bullish market for small-cap stocks.