We simply coated 10 Shares That Tanked: Why Larry Robbins’ High Picks Are Struggling in 2026 and Lithia Motors, Inc. (NYSE:LAD) ranks ninth on this listing.
Lithia Motors, Inc. (NYSE:LAD) first featured within the 13F portfolio of Glenview Capital within the second quarter of 2014. This place comprised slightly below 850,000 shares. By the primary quarter of 2015, the fund had grown this to round 1.4 million shares. Thereafter, it began trimming the shares and offered off this holding utterly by early 2016. A brand new place within the agency was then disclosed within the third quarter of 2025. This holding comprised over 74,000 shares. Filings for the fourth quarter of 2025 present that the fund owned greater than 127,000 shares within the firm, up almost 73% in comparison with filings for the earlier quarter.
Lithia Motors, Inc. (NYSE:LAD) has continued to report file revenues, however hedge funds are more and more involved that the core enterprise is being hollowed out by razor-thin margins and heavy debt. Essentially the most rapid concern is that the agency is working on a margin of error that leaves it weak to even minor financial shocks. The web revenue margin has hovered round a slim 2.2%. In a high-interest-rate surroundings, this leaves no room for operational missteps. Regardless of beating income expectations in Q1 2026, adjusted EBITDA truly declined 9% year-over-year to $374.6 million.
Whereas we acknowledge the potential of LAD as an funding, we imagine sure AI shares provide larger upside potential and carry much less draw back threat. If you happen to’re on the lookout for a particularly undervalued AI inventory that additionally stands to learn considerably from Trump-era tariffs and the onshoring development, see our free report on the finest short-term AI inventory.
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