Is MasterBrand Stock a Buy as One Fund Invests $52.6 Million?
Key Points
Connecticut-based Coliseum Capital Management bought about 3.3 million shares of MasterBrand for an estimated $52.6 million in the third quarter.
Following the transaction, Coliseum reported holding 7.6 million shares valued at about $99.6 million.
The position now represents 9.7% of AUM, making it Coliseum’s fourth-largest holding.
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On November 14, Connecticut-based Coliseum Capital Management disclosed the purchase of nearly 3.3 million shares of MasterBrand (NYSE:MBC) in the third quarter, increasing its position by approximately $52.6 million.
What Happened
According to a U.S. Securities and Exchange Commission (SEC) filing dated November 14, Coliseum Capital Management increased its stake in MasterBrand by nearly 3.3 million shares during the third quarter. The holding grew to 7.6 million shares worth $99.6 million at quarter-end, making it the fund’s fourth-largest position among 11 disclosed equity holdings.
What Else to Know
Coliseum’s buy moves MasterBrand to 9.7% of 13F AUM.
Top holdings after the filing:
- NASDAQ: SONO: $235.9 million (23% of AUM)
- NYSE: HRI: $222.3 million (21.7% of AUM)
- NYSE: NATL: $106.3 million (10.4% of AUM)
- NYSE: MBC: $99.6 million (9.7% of AUM)
- NYSE: UTI: $88.4 million (8.6% of AUM)
As of Friday, MasterBrand shares were priced at $11.09, down 35% over the past year and well underperforming the S&P 500, which is up 14% in the same period.
Company Overview
| Metric | Value |
|---|---|
| Price (as of market close Friday) | $11.09 |
| Market capitalization | $1.4 billion |
| Revenue (TTM) | $2.8 billion |
| Net income (TTM) | $82.7 million |
Company Snapshot
MasterBrand is a leading North American provider of residential cabinetry, focusing on delivering a wide range of cabinetry solutions tailored to diverse customer needs. The company manufactures and sells residential cabinets for kitchens, bathrooms, and other home spaces, serving the North American market. Its strategy leverages manufacturing expertise and distribution reach to maintain strong relationships with homebuilders and retailers, supporting its competitive position in the residential construction and remodeling market. It also serves remodelers and residential homeowners seeking cabinetry solutions for new construction and renovation projects.
Foolish Take
A large, high-conviction addition like this signals how some value-oriented investors might be positioning around a cyclical recovery in homebuilding and remodeling. For long-term investors, the move matters because MasterBrand is trading more than 40% below its October 2024 all-time high while navigating a soft demand backdrop—creating a setup where fundamentals and valuation have meaningfully diverged. The company’s latest quarter showed that dynamic clearly: Net sales fell 2.7% to $698.9 million, pressured by mid- to high-single-digit market declines, while adjusted EBITDA margin slipped to 13% from 14.6% as lower volume hurt fixed-cost leverage and tariffs added incremental pressure. Diluted EPS declined to $0.14 from $0.22 a year ago.
Even so, MasterBrand continues generating solid cash flow ($108.8 million year-to-date operating cash flow) and is preparing to merge with American Woodmark—a deal management says could accelerate growth, drive innovation, and unlock long-term synergies. The stake now represents 9.7% of Coliseumm's reportable assets, sitting alongside much larger bets in Sonos and Herc Rentals, and fitting the fund’s pattern of concentrated, operational-turnaround-oriented holdings.
Glossary
13F reportable AUM: Assets under management that must be disclosed in quarterly U.S. Securities and Exchange Commission (SEC) Form 13F filings by institutional investment managers.
Position: The amount of a particular security or asset held by an investor or fund.
Stake: The ownership interest or shareholding a person or entity has in a company.
Portfolio: The collection of investments held by an individual or institutional investor.
Holding: A specific investment owned within a portfolio, such as stocks or bonds.
Quarter: A three-month period used by companies and investors to report and analyze financial performance.
Underperforming: Delivering returns that are lower than a chosen benchmark or index over a specific period.
Distribution reach: The extent to which a company can deliver its products to customers across different regions or markets.
Homebuilders: Companies or individuals that construct new residential homes for sale.
Remodeling projects: Renovation or improvement work done on existing homes, rather than new construction.
TTM: The 12-month period ending with the most recent quarterly report.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Sonos. The Motley Fool recommends Herc. The Motley Fool has a disclosure policy.
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