Asbury Automotive Completes Sale of Ten Dealerships for Approximately $210 Million
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 25 2026
0mins
Should l Buy ABG?
Asbury Automotive announced the completed sale of ten dealerships across Indiana, Missouri and South Carolina as part of capital allocation and portfolio optimization efforts. Asbury received approximately $210 million in net proceeds from the sale of the dealerships. The proceeds are net of mortgage payoffs for the real estate and estimated taxes. The annualized revenue from these ten dealerships was approximately $610 million. In addition, the Company today announced that its board of directors approved an increase in the authorization of the share repurchase plan for the Company of $424 million. Year to date, the Company has spent $100M repurchasing 441,000 shares. As of February 25, 2026, the Company had $76 million of remaining availability to repurchase shares of common stock under its existing stock repurchase program. As a result, with the increase in authorization announced today, the total availability under the authorization is $500 million as of such date.
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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: 199.520
Low
230.00
Averages
238.33
High
250.00
Current: 199.520
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 175 new-vehicle dealerships, consisting of over 230 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 39 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.
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- Revenue and Return Improvement: Revenue grew by 5% to $116 billion, with return on equity (ROE) improving to 15%, indicating effective strategies in non-interest income and customer loan growth, particularly with significant contributions from the African region's business.
- Dividend and Asset Value Increase: The dividend per share rose by 12% and net asset value per share increased by 8%, which not only demonstrates the company's commitment to shareholders but also enhances market confidence in its future growth potential, despite an 8% decline in business banking earnings.
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- Sales Conversion Rates Rise: Jeremy Robb, Cox's chief economist, noted that since the beginning of 2026, sales conversion rates at Manheim have been solid, reflecting dealers' strong appetite for purchasing, particularly with prices rising unexpectedly in the latter half of February.
- Tax Refund Impact: Robb suggested that anticipated higher tax returns for American consumers could boost vehicle demand, although risks from the war in Iran may dampen consumer appetite in the short term, especially as gas prices rise.
- Historical Price Comparison: While used vehicle prices remain high compared to historical levels, the average listing price in January was $25,533, down from over $28,000 in 2022, yet still demonstrating market resilience, with expectations for wholesale prices to end 2% higher than December 2025.
See More
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- Transparent and Competitive Pricing: Leveraging Thunes' global network, Absa Global Pay offers lower fees and competitive FX rates, ensuring that more funds reach families and small businesses reliant on remittances, thereby enhancing their financial security.
- Strategic Partnership Significance: This collaboration not only showcases Absa's commitment to innovation in financial services but also promotes intra-African money movement by combining local market insights with a global network, fostering financial connectivity and development within communities.
See More
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- Price Fluctuation: The lowest trading price for ABG was $203, with the current trading price at $205.31, close to its 52-week low of $201.68 and high of $274.50, reflecting market volatility and shifts in investor sentiment.
- Market Comparison: Compared to the S&P 500 ETF (SPY) RSI of 39.5, ABG's 28.4 RSI indicates a higher level of overselling, potentially attracting investors looking for rebound opportunities in the stock.
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See More
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- Strategic Adjustment: Asbury's CEO David Hult stated that the decision to sell these dealerships was challenging but reflects a thoughtful and disciplined approach to optimizing their overall portfolio in the market.
- RBM Expansion: This acquisition marks RBM's first expansion beyond metro-Atlanta, adding Porsche, Land Rover, and Crown Nissan dealerships, which aligns well with their long-term growth strategy and complements existing operations.
- Market Demand: The Presidio Group anticipates strong transaction volume in 2026 due to ongoing demand for luxury dealerships, with Asbury's sale exemplifying this trend and attracting significant interest from qualified buyers.
See More
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- Capital Optimization Decision: Asbury Automotive Group has completed the sale of ten dealerships across Indiana, Missouri, and South Carolina, generating approximately $210 million in net proceeds, a strategic move aimed at optimizing capital allocation and enhancing investment returns.
- Annual Revenue Contribution: The annual revenue from these ten dealerships was about $610 million, and the sale will enable Asbury to invest proceeds in reducing its leverage ratio below 3.0, thereby strengthening its financial stability.
- Stock Buyback Plan Expansion: The company's board has approved an increase in the stock repurchase plan authorization to $424 million, with $100 million spent year-to-date on repurchasing 441,000 shares, reflecting a strong commitment to shareholders and confidence in future business prospects.
- Flexible Repurchase Strategy: Under the amended stock repurchase program, Asbury may buy back shares in the open market or through private transactions, with the number and timing of repurchases depending on market conditions and potential impacts on the company's capital structure, ensuring adaptability to market fluctuations.
See More
