Autoliv Stock Is Up 32% in a Year, But One Fund Just Cut $3.8 Million

On February 2, Tweedy, Browne Co disclosed in an SEC filing that it sold 31,740 shares of Autoliv (NYSE:ALV), an estimated $3.79 million trade based on quarterly average pricing.

What happened

In an SEC filing dated February 2, Connecticut-based financial planner Tweedy, Browne reported selling 31,740 shares of Autoliv during the fourth quarter. The estimated transaction value was $3.79 million, calculated using the average unadjusted closing price for the period. The reduction brought the stake to 400,924 shares at quarter’s end. The value of the fund’s Autoliv position dropped by $5.84 million, reflecting both the sale and market movement over the quarter.

What else to know

Tweedy, Browne’s stake in Autoliv now represents 3.84% of its $1.24 billion reportable U.S. equity AUM.

Top holdings after the filing:

• NASDAQ: IONS: $195.00 million (15.8% of AUM)
• NYSE: CNH: $186.07 million (15.0% of AUM)
• NYSE: KOF: $112.59 million (9.1% of AUM)
• UNK: BRK-A: $108.69 million (8.8% of AUM)
• NASDAQ: GOOGL: $62.46 million (5.0% of AUM)

As of February 2, ALV shares were priced at $120.49, up 32.0% over the past year and outperforming the S&P 500 by 12.78 percentage points.

Company overview

Company snapshot

• Autoliv develops and manufactures passive safety systems, including airbags, seatbelts, steering wheels, inflator technologies, and pedestrian protection solutions.
• The company generates revenue through the sale of safety system modules and components to automotive manufacturers worldwide, with a focus on both OEM supply contracts and ongoing product innovation.
• It serves global automotive OEMs as primary customers, targeting major car manufacturers across Europe, the Americas, and Asia.

Autoliv, Inc. is a leading supplier of automotive safety systems with a global footprint and a diversified customer base among major car manufacturers. The company leverages decades of expertise and scale to deliver advanced passive safety solutions, supporting its position as a critical partner in vehicle occupant protection. Autoliv's strategy centers on continuous innovation and operational excellence to maintain its competitive edge in the auto parts industry.

What this transaction means for investors

Strong gains can change how even patient investors manage exposure, and Autoliv’s past year is a textbook case. With shares up more than 30% and comfortably ahead of the S&P 500, trimming here looks less like a loss of conviction and more like risk control after a sharp rerating.

Fundamentally, Autoliv is still executing. In the most recent quarterly release, the company posted $2.82 billion in revenue, up 7.7% year over year, with operating cash flow hitting a record $544 million. Full-year operating cash flow reached $1.16 billion, supporting dividends, buybacks, and a leverage ratio well below management’s 1.5x ceiling.

But the forward picture is more nuanced. Management is guiding for roughly flat organic growth in 2026 and an adjusted operating margin of 10.5% to 11.0%, with a weaker first quarter expected before improvement later in the year. That is solid, not explosive, especially after a valuation reset driven by margin recovery and China momentum.

Within Tweedy Browne’s portfolio, Autoliv remains a meaningful position at nearly 4% of assets, sitting alongside high-conviction holdings like CNH and Coca-Cola FEMSA. For long-term investors, the signal here is discipline. Autoliv still looks like a quality compounder, but after a big run, even good businesses can justify a partial step back rather than an all-or-nothing call.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Berkshire Hathaway, and Ionis Pharmaceuticals. The Motley Fool has a disclosure policy.