Should you buy Lithia Motors stock? (NYSE:LAD). Let's see how it does in our automated value investing analysis system.
(Lithia Motors stock price per share)
||LAD Fair Price
(based on intrinsic value)
|LAD Safety Price (based on a variable margin of safety)||$-2.93|
|PE Ratio versus Sector||6% lower than other Consumer Goods stocks|
|PE Ratio versus Industry||48% lower than other Auto & Truck Dealerships stocks|
|Free Cash Flow Jitter||18%|
|Dividend Yield||0%||Shares Shorted||2,166,039|
This stock has short interest! This means that people have shorted it.
Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.
As of the latest analysis, there are 2,166,039 shares shorted. With 23,809,073 shares available for purchase and an average trading volume over the past 10 trading days of 494,970, it would take at least 4.376 days for all of the short holders to cover their shorts.
We believe that Lithia Motors may be worth examining further. It's making money, which is a very positive sign. Is it on sale?
Lithia Motors looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.
Does Lithia Motors have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.
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