Is IAC Stock a Buy or Sell After Incline Global Liquidated Its Entire Stake Worth $15.4 Million?
Key Points
Incline Global sold 452,404 IAC shares; estimated trade size ~$15.41 million based on quarterly average pricing.
Quarter-end position value fell by $15.41 million, reflecting both the share sale and price movement.
Transaction represented a 5.3% change relative to fund’s $292.68 million in reportable equity assets.
This marks a full liquidation of a position that previously accounted for 4.6% of the fund’s AUM as of the prior quarter.
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What happened
According to an SEC filing dated February 17, 2026, Incline Global Management LLC fully exited its position in IAC (NASDAQ:IAC) during the fourth quarter. The estimated transaction value is $15.41 million, based on the quarter’s average share price. The fund’s position in IAC fell to zero shares, with the net position change — reflecting both trading activity and market price moves — also totaling $15.41 million.
What else to know
Incline Global fully liquidated its IAC stake, which now represents 0% of reportable 13F assets under management (AUM), down from 4.6% in the prior quarter.
Top holdings after the filing:
- NYSE:ASGN: $15.69 million (5.36% of AUM)
- NYSE:VRT: $15.55 million (5.31% of AUM)
- NYSE:NCLH: $15.15 million (5.18% of AUM)
- NYSE:GVA: $14.92 million (5.10% of AUM)
- NYSE:PRIM: $14.54 million (4.97% of AUM)
As of February 17, 2026, IAC shares were priced at $34.27, down 11% over the past year, underperforming the S&P 500 by 23 percentage points.
IAC reported trailing twelve months revenue of $2.39 billion with a net loss of $104.03 million; forward P/E was 26.4, and EV/EBITDA was 18.5 as of February 17.
Company Overview
| Metric | Value |
|---|---|
| Price (as of market close February 17, 2026) | $34.27 |
| Market capitalization | $2.65 billion |
| Revenue (TTM) | $2.39 billion |
| Net income (TTM) | ($104.03 million) |
Company Snapshot
- IAC offers digital content publishing, online marketplaces for home services, search and information websites, and platforms connecting families with caregivers and professionals.
- It generates revenue primarily through advertising, subscription fees, and service transaction commissions across its digital platforms and marketplaces.
- The company targets consumers seeking digital content, home services, caregiving solutions, and information services, as well as businesses and professionals seeking online exposure and job opportunities.
IAC operates a diversified portfolio of digital businesses, leveraging technology to deliver content, services, and marketplaces across multiple consumer-facing verticals.
The company’s strategy focuses on building scalable platforms that connect users with services and information, supported by recurring revenue streams from advertising and subscriptions. With a broad reach and a focus on digital innovation, IAC positions itself to capture value in evolving online markets.
What this transaction means for investors
Hedge fund Incline Global Management’s exit from IAC suggests it has a bearish outlook towards the stock. IAC shares reached a 52-week low of $29.56 in the fourth quarter of 2025, but reversed course before the end of the year.
In 2026, IAC shares are approaching their high of $41.86 achieved last July thanks to encouraging news from the company. Even though overall revenue in the fourth quarter declined 10% year over year to $646 million, its People Inc. division experienced its highest digital sales growth in five quarters, with a 14% year-over-year increase to $355 million.
In December, People Inc. signed a multi-year content distribution deal with Facebook and Instagram parent Meta Platforms, which contributed to IAC stock’s rebound from its low. Moreover, on March 2, news reports indicated IAC was near a deal to sell its Care.com property, which had a 9% year-over-year decline in Q4 revenue.
As a result, IAC is looking increasingly like a promising investment. But with its share price growth, its valuation has gotten pricey. Its price-to-sales ratio of 1.25 hovers around a high point for the year, making now a good time for shareholders to sell. But for investors interested in buying, wait for the stock price to drop first.
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Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vertiv. The Motley Fool has a disclosure policy.
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