Eminence Capital Opens $122 Million Valvoline Position Amid Stock's 20% Dip
Key Points
Eminence Capital acquired 4,212,293 shares in Valvoline; the estimated trade value is $122.41 million based on the quarterly average price.
Quarter-end position value increased by $122.41 million, reflecting both the new stake and stock price movement.
The position represents 1.94% of the fund's reportable assets under management (AUM).
Post-trade, Eminence holds 4,212,293 Valvoline shares valued at $122.41 million.
The new stake represents 1.94% of AUM, placing it outside the fund's top five holdings.
- 10 stocks we like better than Valvoline ›
What happened
According to an SEC filing dated Feb. 17, 2026, Eminence Capital, LP, initiated a new position in Valvoline (NYSE:VVV) by purchasing 4,212,293 shares. The estimated value of this acquisition is $122.41 million, based on the average share price during the quarter. The firm reported a quarter-end holding of 4,212,293 shares, with the stake’s value shifting to reflect both the new purchase and changes in Valvoline’s stock price.
What else to know
This new position for Eminence Capital represents 1.94% of its reportable AUM as of the filing date.
- Top holdings after the filing:
- Amazon: $340.60 million (5.39% of AUM)
- Sea Limited: $336.99 million (5.33% of AUM)
- Louisiana-Pacific: $326.93 million (5.17% of AUM)
- Workiva: $319.66 million (5.05% of AUM)
- Coupang: $298.27 million (4.7% of AUM)
As of March 3, 2026, Valvoline shares were trading at $37.50, up 1.64% over the past year, underperforming the S&P 500 by 13 percentage points.
Company Overview
| Metric | Value |
|---|---|
| Market capitalization | $4.77 billion |
| Revenue (TTM) | $1.76 billion |
| Net income (TTM) | $88.70 million |
| Price (as of market close 3/3/26) | $37.50 |
Company Snapshot
- Valvoline provides automotive lubricants, antifreeze/coolants, functional and maintenance chemicals, oil and air filters, and operates instant oil change service centers.
- The company generates revenue from the sale of branded automotive maintenance products and services, as well as from its franchise- and company-operated quick-lube locations.
- Primary customers include individual vehicle owners, car dealerships, general repair shops, and third-party quick lube operators across North America and international markets.
Valvoline is a leading provider of automotive maintenance products and services, with a significant presence in both retail and service operations. The company leverages a strong brand, an extensive network of service centers, and a broad product portfolio to serve a diverse customer base.
What this transaction means for investors
It appears that Eminence Capital’s purchase of Valvoline in Q4 was beautifully timed. While Foolish investing doesn’t revolve around timing the market, I wanted to point it out nonetheless for Eminence after it bought shares at around $29, only for the company to subsequently jump to $37.50 today. It will be interesting to see what the firm does in Q1 following this rise, whether it doubles down, keeps holding, or sells.
As for the stock, Valvoline may be benefiting thanks to being a “HALO” stock, as coined by Josh Brown, CEO of Ritholtz Wealth Management. These “heavy asset, low obsolescence” stocks have surged to start 2026, offering investors a reprieve from tech- and software-heavy businesses that are more easily disrupted as AI’s capabilities advance. Additionally, the company just grew its store count by 16% to 2,380 locations and has grown sales by roughly 9% annually over the last four years. Over the long haul, management hopes to increase its store count to over 3,500, so VVV’s growth story is far from over.
Best yet, management believes the company has an incredibly high Net Promoter Score of 80, which is top-tier. Trading at 22 times forward earnings, the company’s best-in-class customer service and steady growth are available at a fair valuation. While Valvoline has to avoid the potential of a shift toward the proliferation of hybrid and electric vehicles, the company already offers an array of products for these next-gen autos, such as specific fluids and lubricants that help extend vehicle lifespans. I’m not in a rush to buy shares myself, but I can certainly see why Eminence likes the stock, and I’ll be watching to see what they do in Q1.
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Josh Kohn-Lindquist has positions in Coupang and Sea Limited. The Motley Fool has positions in and recommends Amazon, Sea Limited, and Workiva. The Motley Fool recommends Coupang. The Motley Fool has a disclosure policy.
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