Lithia Motors Inc. (LAD): Larry Robbins Is Loading Up on This Stock

We just covered 10 Stocks That Tanked: Why Larry Robbins’ Top Picks Are Struggling in 2026 and Lithia Motors, Inc. (NYSE:LAD) ranks 9th on this list.

Lithia Motors, Inc. (NYSE:LAD) first featured in the 13F portfolio of Glenview Capital in the second quarter of 2014. This position comprised just under 850,000 shares. By the first quarter of 2015, the fund had grown this to around 1.4 million shares. Thereafter, it started trimming the shares and sold off this holding completely by early 2016. A new position in the firm was then disclosed in the third quarter of 2025. This holding comprised over 74,000 shares. Filings for the fourth quarter of 2025 show that the fund owned more than 127,000 shares in the company, up nearly 73% compared to filings for the previous quarter.

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Lithia Motors, Inc. (NYSE:LAD) has continued to report record revenues, but hedge funds are increasingly concerned that the core business is being hollowed out by razor-thin margins and heavy debt. The most immediate concern is that the firm is operating on a margin of error that leaves it vulnerable to even minor economic shocks. The net profit margin has hovered around a slim 2.2%. In a high-interest-rate environment, this leaves no room for operational missteps. Despite beating revenue expectations in Q1 2026, adjusted EBITDA actually declined 9% year-over-year to $374.6 million.

While we acknowledge the risk and potential of LAD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LAD and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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