GoodHaven Capital increases stake in Asbury Automotive Group
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy ABG?
Source: Fool
Asbury Automotive Group's stock fell 7.14% and hit a 52-week low amid broader market declines, with the Nasdaq-100 down 1.47% and the S&P 500 down 1.20%.
GoodHaven Capital Management disclosed that it increased its stake in Asbury Automotive Group by 17,163 shares, valued at approximately $3.81 million, indicating confidence in the company's future. Despite a 1% year-over-year decline in first-quarter revenue to $4.1 billion, Asbury's gross profit remained strong at $727 million, showcasing its ability to maintain profitability. Additionally, the company repurchased around 678,000 shares for $147 million and expanded its buyback authorization to $500 million, reflecting a commitment to enhancing shareholder returns.
The increase in GoodHaven's stake may signal positive sentiment towards Asbury's long-term prospects, despite the current market challenges. The company's buyback initiative and stable gross profit could help restore investor confidence.
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Analyst Views on ABG
Wall Street analysts forecast ABG stock price to rise
4 Analyst Rating
0 Buy
3 Hold
1 Sell
Hold
Current: 193.090
Low
230.00
Averages
238.33
High
250.00
Current: 193.090
Low
230.00
Averages
238.33
High
250.00
About ABG
Asbury Automotive Group, Inc. is an automotive retailer. The Company operates through two segments: Dealerships and Total Care Auto (TCA). The Company offers a range of automotive products and services fulfilling the entire vehicle ownership lifecycle, including new and used vehicles, parts and services, which include vehicle repair and maintenance services, replacement parts and collision repair services, and finance and insurance (F&I) products, including arranging vehicle financing through third parties and aftermarket products, such as extended service contracts, guaranteed asset protection debt cancellation and prepaid maintenance plans. The Company operates approximately 161 new-vehicle dealerships, consisting of over 209 franchises and representing 36 domestic and foreign brands of vehicles. It also operates Total Care Auto, Powered by Landcar, a provider of service contracts and other vehicle protection products, and 38 collision repair centers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
GoodHaven Capital Increases Stake in Asbury Automotive Group
- Stake Increase: GoodHaven Capital Management disclosed in an SEC filing on May 12, 2026, that it increased its stake in Asbury Automotive Group by 17,163 shares, representing an estimated trade value of $3.81 million, indicating confidence in the company's future.
- Value Growth: As of the quarter-end, GoodHaven's total position in Asbury was valued at $8.55 million, up $2.37 million from the previous quarter, reflecting the positive impact of both new purchases and price changes on the investment.
- Stable Financial Performance: Asbury reported first-quarter revenue of $4.1 billion, down 1% year-over-year, yet gross profit reached $727 million, demonstrating the company's ability to maintain profitability despite softening sales volumes.
- Share Buyback Initiative: Asbury repurchased approximately 678,000 shares for $147 million during the quarter and expanded its buyback authorization to $500 million, signaling a commitment to enhancing shareholder returns and boosting market confidence.
See More
Asbury Automotive Leadership Transition Announced
- Leadership Change: Asbury Automotive announced that David Hult has formally transitioned from CEO to Executive Chairman, effective immediately, marking a strategic shift following a period of significant expansion for the company.
- Financial Performance: In Q1 2026, Asbury reported a non-GAAP EPS of $5.37, missing expectations by $0.25, while revenue of $4.1 billion fell short by $270 million, indicating challenges in profitability and revenue growth.
- Capital Expenditure Plans: Asbury plans approximately $250 million in capital expenditures for 2026 to support its business expansion and technological transformation, particularly aiming for a full conversion to the Tekion platform by fall 2026.
- Market Strategy Adjustment: This leadership transition aligns with Asbury's market strategy, reflecting a thoughtful shift towards prioritizing profit margins over sheer volume in response to the evolving market landscape.
See More
Asbury Automotive Group Q1 2026 Earnings Call Insights
- Financial Performance Overview: Asbury Automotive Group reported $4.1 billion in revenue for Q1 2026, with adjusted EPS of $5.37, falling short of analysts' expectations of $5.62, indicating a decline in overall sales performance due to moderated consumer demand.
- Transformation Progress: Over 50% of stores have successfully migrated to the Tekion system, with full conversion expected by fall this year; however, integration-related costs and temporary disruptions to store operations will remain elevated during this transition period, potentially impacting short-term efficiency.
- Asset Divestiture and Buyback: The company divested 10 dealerships and a collision center in Q1, generating approximately $600 million in annualized revenue, with $147 million allocated for repurchasing 678,000 shares, reflecting proactive measures in optimizing its asset portfolio.
- Future Outlook: Management anticipates an effective tax rate of approximately 25% for 2026 and emphasizes that fixed operations gross profit is expected to grow at a mid-single-digit rate over time, despite challenges posed by weather and market uncertainties.
See More
Asbury Automotive Q1 Earnings Miss Expectations
- Earnings Report Shortfall: Asbury Automotive's Q1 non-GAAP EPS of $5.37 missed expectations by $0.25, indicating pressure on profitability that could affect investor confidence moving forward.
- Stable Revenue: The revenue for Q1 stood at $4.1 billion, flat year-over-year but missing expectations by $270 million, suggesting that market demand has not significantly increased, which may impact future growth strategies.
- Gross Profit Performance: Gross profit reached $727 million, with used retail gross profit per unit at $1,847, reflecting a 16% growth, indicating some success in cost control and pricing strategies that may support future profitability.
- Share Buyback Initiative: The company repurchased approximately 678,000 shares for $147 million, demonstrating management's confidence in the company's value while potentially enhancing EPS and shareholder returns.
See More
Asbury Automotive Reports Increased Q1 Profit
- Profit Growth: Asbury Automotive Group's Q1 net profit reached $187.8 million, or $9.87 per share, significantly up from last year's $132.1 million and $6.71 per share, indicating improved profitability.
- Adjusted Earnings: Excluding items, Asbury reported adjusted earnings of $102.3 million, or $5.37 per share, demonstrating stable performance in core operations despite a slight revenue decline.
- Slight Revenue Decline: Q1 revenue was $4.113 billion, down 0.9% from $4.149 billion last year, suggesting increased market competition may be impacting sales, necessitating a focus on future sales strategies.
- Financial Health: Despite the revenue dip, Asbury's strong profitability highlights advantages in cost control and operational efficiency, laying a solid foundation for future growth.
See More
Asbury Automotive Q1 Earnings Preview
- Earnings Announcement Date: Asbury Automotive (ABG) is set to release its Q1 earnings on April 28 before market open, drawing significant attention from investors regarding its performance.
- Declining EPS Expectations: The consensus EPS estimate stands at $5.62, reflecting a 17.6% year-over-year decline, indicating potential profitability challenges that could impact investor confidence.
- Revenue Growth Expectations: The consensus revenue estimate is $4.37 billion, representing a 6.6% year-over-year increase, suggesting that despite the decline in earnings, sales growth remains, potentially supporting the company's future development.
- Historical Performance: Over the past two years, ABG has beaten EPS estimates 75% of the time, while only 38% of the time for revenue estimates, highlighting volatility in the company's profitability metrics.
See More
GoodHaven Capital Increases Stake in Asbury Automotive Group
- Stake Increase: GoodHaven Capital Management disclosed in an SEC filing on May 12, 2026, that it increased its stake in Asbury Automotive Group by 17,163 shares, representing an estimated trade value of $3.81 million, indicating confidence in the company's future.
- Value Growth: As of the quarter-end, GoodHaven's total position in Asbury was valued at $8.55 million, up $2.37 million from the previous quarter, reflecting the positive impact of both new purchases and price changes on the investment.
- Stable Financial Performance: Asbury reported first-quarter revenue of $4.1 billion, down 1% year-over-year, yet gross profit reached $727 million, demonstrating the company's ability to maintain profitability despite softening sales volumes.
- Share Buyback Initiative: Asbury repurchased approximately 678,000 shares for $147 million during the quarter and expanded its buyback authorization to $500 million, signaling a commitment to enhancing shareholder returns and boosting market confidence.
See More
Asbury Automotive Leadership Transition Announced
- Leadership Change: Asbury Automotive announced that David Hult has formally transitioned from CEO to Executive Chairman, effective immediately, marking a strategic shift following a period of significant expansion for the company.
- Financial Performance: In Q1 2026, Asbury reported a non-GAAP EPS of $5.37, missing expectations by $0.25, while revenue of $4.1 billion fell short by $270 million, indicating challenges in profitability and revenue growth.
- Capital Expenditure Plans: Asbury plans approximately $250 million in capital expenditures for 2026 to support its business expansion and technological transformation, particularly aiming for a full conversion to the Tekion platform by fall 2026.
- Market Strategy Adjustment: This leadership transition aligns with Asbury's market strategy, reflecting a thoughtful shift towards prioritizing profit margins over sheer volume in response to the evolving market landscape.
See More
Asbury Automotive Group Q1 2026 Earnings Call Insights
- Financial Performance Overview: Asbury Automotive Group reported $4.1 billion in revenue for Q1 2026, with adjusted EPS of $5.37, falling short of analysts' expectations of $5.62, indicating a decline in overall sales performance due to moderated consumer demand.
- Transformation Progress: Over 50% of stores have successfully migrated to the Tekion system, with full conversion expected by fall this year; however, integration-related costs and temporary disruptions to store operations will remain elevated during this transition period, potentially impacting short-term efficiency.
- Asset Divestiture and Buyback: The company divested 10 dealerships and a collision center in Q1, generating approximately $600 million in annualized revenue, with $147 million allocated for repurchasing 678,000 shares, reflecting proactive measures in optimizing its asset portfolio.
- Future Outlook: Management anticipates an effective tax rate of approximately 25% for 2026 and emphasizes that fixed operations gross profit is expected to grow at a mid-single-digit rate over time, despite challenges posed by weather and market uncertainties.
See More
Asbury Automotive Q1 Earnings Miss Expectations
- Earnings Report Shortfall: Asbury Automotive's Q1 non-GAAP EPS of $5.37 missed expectations by $0.25, indicating pressure on profitability that could affect investor confidence moving forward.
- Stable Revenue: The revenue for Q1 stood at $4.1 billion, flat year-over-year but missing expectations by $270 million, suggesting that market demand has not significantly increased, which may impact future growth strategies.
- Gross Profit Performance: Gross profit reached $727 million, with used retail gross profit per unit at $1,847, reflecting a 16% growth, indicating some success in cost control and pricing strategies that may support future profitability.
- Share Buyback Initiative: The company repurchased approximately 678,000 shares for $147 million, demonstrating management's confidence in the company's value while potentially enhancing EPS and shareholder returns.
See More
Asbury Automotive Reports Increased Q1 Profit
- Profit Growth: Asbury Automotive Group's Q1 net profit reached $187.8 million, or $9.87 per share, significantly up from last year's $132.1 million and $6.71 per share, indicating improved profitability.
- Adjusted Earnings: Excluding items, Asbury reported adjusted earnings of $102.3 million, or $5.37 per share, demonstrating stable performance in core operations despite a slight revenue decline.
- Slight Revenue Decline: Q1 revenue was $4.113 billion, down 0.9% from $4.149 billion last year, suggesting increased market competition may be impacting sales, necessitating a focus on future sales strategies.
- Financial Health: Despite the revenue dip, Asbury's strong profitability highlights advantages in cost control and operational efficiency, laying a solid foundation for future growth.
See More
Asbury Automotive Q1 Earnings Preview
- Earnings Announcement Date: Asbury Automotive (ABG) is set to release its Q1 earnings on April 28 before market open, drawing significant attention from investors regarding its performance.
- Declining EPS Expectations: The consensus EPS estimate stands at $5.62, reflecting a 17.6% year-over-year decline, indicating potential profitability challenges that could impact investor confidence.
- Revenue Growth Expectations: The consensus revenue estimate is $4.37 billion, representing a 6.6% year-over-year increase, suggesting that despite the decline in earnings, sales growth remains, potentially supporting the company's future development.
- Historical Performance: Over the past two years, ABG has beaten EPS estimates 75% of the time, while only 38% of the time for revenue estimates, highlighting volatility in the company's profitability metrics.
See More
