Aristeia Capital Bought Nearly 3 Million IAC Shares. Is the Stock a Buy?
Key Points
Aristeia Capital bought 2,861,871 shares of IAC; estimated trade size was $100.22 million (on a quarterly average pricing basis).
Quarter-end position value increased by $126.19 million, reflecting both share additions and stock price movement.
The trade represented a 2.17% increase in 13F reportable assets under management.
Post-trade holding totaled 5,702,459 shares, valued at $222.97 million.
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What happened
In its SEC filing dated February 17, 2026, Aristeia Capital, L.L.C. reported purchasing 2,861,871 additional shares of IAC (NASDAQ:IAC), bringing its total stake to 5,702,459 shares. The estimated value of shares bought was $100.22 million, calculated using the quarter’s average closing price.
The fund’s quarter-end position value in IAC increased by $126.19 million, a figure that reflects both the share increase and price movement during the period.
What else to know
This was a buy; IAC now represents 4.83% of Aristeia Capital, L.L.C.’s 13F reportable assets under management.
Top holdings after the filing:
- NYSE:HEI.A: $224.47 million (4.9% of AUM)
- NASDAQ:IAC: $222.97 million (4.8% of AUM)
- NYSE:CUK: $125.29 million (2.7% of AUM)
- NYSE:CIVI: $110.57 million (2.4% of AUM)
- NASDAQ:LBRDK: $92.01 million (2.0% of AUM)
As of February 17, 2026, IAC shares were priced at $34.27, down 11.0% over the past year and underperforming the S&P 500 by 23.02 percentage points.
Company/ETF overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $2.39 billion |
| Net income (TTM) | ($104.03 million) |
| Price (as of market close February 17, 2026) | $34.27 |
| One-year price change | (11.03%) |
Company/ETF snapshot
- IAC offers digital content, online marketplaces, and search services across brands such as Angi, Ask.com, Care.com, and The Daily Beast.
- It generates revenue primarily through digital advertising, service fees from online marketplaces, and subscription-based mobile applications.
- The company targets consumers seeking home services, caregivers, information, and digital media content, as well as businesses looking to connect with customers online.
IAC is a diversified digital media and internet company with a portfolio spanning content, marketplaces, and technology-driven platforms. Its strategy centers on building and scaling brands that address evolving consumer needs in online services and information.
With a broad reach and a focus on innovation, IAC leverages its digital assets to maintain competitive positioning in the internet content and information industry.
What this transaction means for investors
Aristeia Capital’s purchase of IAC stock in the fourth quarter of 2025 is a noteworthy event. The investment firm’s decision to acquire an additional 2.9 million shares was a substantial buy, suggesting Aristeia is bullish on the stock.
The timing of Aristeia’s purchase may have also played a role. In Q4, IAC shares hit a 52-week low of $29.56 before ending the year on an upswing. In 2026, IAC stock is approaching its high $41.86, making Aristeia’s buy a good move. Shares closed at $38.19 on March 4.
IAC’s stock price rose thanks to some encouraging signs of business strength. Although overall revenue in the fourth quarter was down 10% year over year to $646 million, its People Inc. division saw the highest digital sales growth in five quarters, rising 14% over 2024 to $355 million.
People Inc. also forged a multi-year content distribution deal with Facebook and Instagram parent Meta Platforms. This contributed to IAC’s stock price increase.
With IAC’s share price up, so is its valuation. Its price-to-sales ratio is the highest in over a year. So although IAC looks like a compelling investment, now is not an ideal time to buy. Instead, wait for the stock to drop before deciding to invest.
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Robert Izquierdo has positions in Carnival Corp. and Meta Platforms. The Motley Fool has positions in and recommends Heico and Meta Platforms. The Motley Fool recommends Carnival Corp. and Liberty Broadband. The Motley Fool has a disclosure policy.
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