Asbury Stock Is Down 17%. One Fund Just Increased Its Bet by Millions

GoodHaven Capital Management disclosed in a May 12, 2026, SEC filing that it bought 17,163 shares of Asbury Automotive Group (NYSE:ABG), an estimated $3.81 million trade based on quarterly average pricing.

What happened

According to a May 12, 2026, SEC filing, GoodHaven Capital Management increased its position in Asbury Automotive Group by 17,163 shares. The estimated value of the buy was $3.81 million, calculated using the average closing price for the first quarter of 2026. The fund's quarter-end position in Asbury Automotive Group was valued at $8.55 million, up $2.37 million from the previous quarter, reflecting both new purchases and price changes.

What else to know

• This was a buy, bringing the stake to 2.98% of 13F AUM after the quarter-end.
• Top holdings after the filing:
  • NYSE: BRK-B: $58.64 million (21.0% of AUM)
  • NASDAQ: GOOGL: $36.86 million (13.2% of AUM)
  • NYSE: DVN: $22.87 million (8.2% of AUM)
  • NYSE: BAC: $20.64 million (7.4% of AUM)
  • NYSE: JEF: $18.36 million (6.6% of AUM)
• As of May 11, 2026, ABG shares were priced at $197.49, down about 17% and significantly underperforming the S&P 500, which is instead up about 26% in the same period.

Company overview

Company snapshot

• Asbury Automotive offers new and used vehicles, vehicle repair and maintenance, replacement parts, collision repair, and finance and insurance products.
• The firm generates revenue primarily through automotive sales and after-sales services, including arranging third-party vehicle financing and selling aftermarket products.
• It serves retail automotive customers across the United States through a network of dealership locations and collision centers.

Asbury Automotive Group, Inc. is a leading automotive retailer in the United States, operating a broad network of dealerships and collision centers. The company leverages a diversified portfolio of automotive brands and comprehensive service offerings to drive revenue and customer retention. Asbury's integrated business model and focus on both vehicle sales and high-margin after-sales services help sustain its competitive positioning within the auto dealership industry.

What this transaction means for investors

Auto dealership stocks have cooled significantly after several boom years (Lithia Motors is down 14% this past year; AutoNation is up just 4%), but GoodHaven appears to be leaning into the pullback with Asbury rather than avoiding it.

Importantly, Asbury’s latest results, reported late last month, were far from disastrous. First-quarter revenue fell 1% but still topped $4.1 billion, while gross profit reached $727 million. Used vehicle retail gross profit per unit jumped 16% to $1,847, showing the company is still finding ways to protect margins even as sales volumes soften.

Management also continued aggressively returning capital to shareholders, repurchasing roughly 678,000 shares for $147 million during the quarter while expanding its buyback authorization to $500 million. Meanwhile, the company generated $188 million in net income and maintained roughly $1.2 billion in liquidity.

Ultimately and perhaps unsurprisingly, the story here will likely come down to execution. Asbury is actively reshaping its dealership portfolio, rolling out Tekion technology across more than half its stores, and focusing more heavily on higher-margin service and financing revenue streams. If management can stabilize margins while demand normalizes, the recent stock weakness could eventually look more like a cyclical reset than a broken business.

Bank of America is an advertising partner of Motley Fool Money. Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Berkshire Hathaway, and Jefferies Financial Group. The Motley Fool has a disclosure policy.