Lithia Motors Inc (LAD) Soars 0.83% on Acquisitions, Share Repurchases

Lithia Motors Inc (LAD) has recently experienced a stock price increase, influenced by several key factors. The share price rose to its highest level since March 2025 today, with an intraday gain of 0.83%.

The strategy of buying LAD shares after they reached a recent high and holding for 1 week yielded solid results over the past 5 years, with an average annual return of 17.37%. This outperformed the market by 4.24% on an annualized basis, demonstrating the effectiveness of this approach in capturing Lithia Motors' growth potential.

Lithia Motors has been actively pursuing strategic acquisitions to bolster its market position. On June 10, 2025, the company announced the acquisition of two Mercedes-Benz dealerships in Collierville, TN, and Jackson, MS. This move is part of a broader $4 billion expansion strategy aimed at strengthening its presence in the Southeast U.S. market. These acquisitions are expected to enhance Lithia Motors' revenue streams and customer base, contributing to its overall growth and market competitiveness.

In addition to acquisitions, Lithia Motors has been focusing on enhancing shareholder value through share repurchases. Year-to-date, the company has invested $230 million to repurchase approximately 729,000 shares, reducing outstanding shares by 2.8%. This strategy not only supports the stock price but also signals the company's confidence in its future prospects.

Technical indicators also suggest a positive outlook for Lithia Motors. The company's shares recently crossed above their 200-day moving average, a technical indicator that often suggests potential further price strength. This technical signal, combined with the company's strategic initiatives, has contributed to the recent positive performance of Lithia Motors' stock.