Dauch Stock Is Up 28%, and One Fund Just Revealed Opening Up a $24 Million Position

Cramer Rosenthal McGlynn established a new position in Dauch Corporation (NYSE:DCH) during the first quarter, acquiring approximately 3,486,423 shares in a trade estimated at $24.25 million based on quarterly average pricing, according to a May 15, 2026, SEC filing.

What happened

According to a SEC filing dated May 15, 2026, Cramer Rosenthal McGlynn reported a new holding in Dauch Corporation, purchasing 3,486,423 shares. The estimated transaction value was $24.25 million, calculated using the average closing price for the quarter. At quarter-end, the position was valued at $20.67 million, reflecting both the purchase and subsequent price changes.

What else to know

• Top five holdings after the filing:
  • NYSE: BKU: $59.78 million (4.4% of AUM)
  • NYSE: SKY: $57.06 million (4.2% of AUM)
  • NYSE: RRX: $46.56 million (3.4% of AUM)
  • NASDAQ: HUBG: $41.47 million (3.0% of AUM)
  • NASDAQ: EVRG: $34.97 million (2.6% of AUM)
• As of Tuesday, shares of Dauch were priced at $5.78, up about 28% over the past year, compared to a 24% gain for the S&P 500.

Company Overview

Company Snapshot

• Dauch Corporation designs and manufactures driveline and metal forming technologies, including axles, driveshafts, differential assemblies, and safety-critical components for electric, hybrid, and internal combustion vehicles.
• The firm operates through Driveline and Metal Forming segments, generating revenue by supplying engineered systems and components to automotive manufacturers and industrial markets globally.
• Its primary customers include light vehicle, commercial vehicle, and off-highway vehicle manufacturers across North America, Asia, Europe, and South America.

Dauch Corporation is a leading supplier of driveline and metal forming technologies, serving a broad spectrum of automotive and industrial clients worldwide. The company leverages its engineering expertise and manufacturing scale to support both traditional and electric vehicle platforms. With a diversified product portfolio and a global footprint, Dauch Corporation is positioned to address evolving industry demands in mobility and vehicle electrification.

What this transaction means for investors

With this new position, Cramer Rosenthal McGlynn appears to be leaning into the idea that Dauch’s Dowlais acquisition, completed this February, could create a much larger and more profitable company over the next few years, even if near-term results remain messy.

The company’s latest quarterly report, released on May 8, showed both the opportunity and the risks. Sales jumped to $2.38 billion from $1.41 billion a year earlier, largely driven by the Dowlais acquisition, while adjusted EBITDA climbed to $308.5 million. Still, Dauch posted a net loss of $100.3 million as acquisition-related costs, restructuring expenses, and integration spending weighed on results.

Management is forecasting 2026 sales of as much as $10.8 billion and expects more than $100 million in annualized synergy benefits by the end of year one. The company also said it expects to mitigate most tariff-related costs. Going forward, integration will be important, but thus far, it seems that at least Cramer Rosenthal, a value-focused fund, sees opportunity.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.