Miller Value Partners Just Bought Shares in This Cheap Stock

Miller Value Partners, LLC initiated a new position in Dauch Corporation (NYSE:DCH) during the fourth quarter, acquiring 1,734,780 shares. The estimated transaction value was $11.12 million, based on quarterly average pricing, according to a February 17, 2026, SEC filing.

This automotive firm supplies driveline and metal forming tech to global vehicle makers across electric, hybrid, and traditional platforms.

• Purchased 1,734,780 shares; estimated trade value of $11.12 million based on quarterly average price.
• Quarter-end position value rose by $11.12 million, reflecting both share purchases and stock price movement.
• The transaction represented a 3.92% increase relative to Miller Value Partners' 13F reportable assets under management.
• Held 1,734,780 shares at quarter-end, valued at $11.12 million.
• New Dauch stake places it outside the fund's top five holdings by reported value.

What happened

Miller Value Partners, LLC disclosed in a February 17, 2026, SEC filing that it entered a new position in Dauch Corporation by acquiring 1,734,780 shares during the fourth quarter. The estimated transaction value was $11.12 million, calculated using the quarter’s average share price. The fund’s quarter-end stake in Dauch was valued at $11.12 million, with the position accounting for 3.92% of reported 13F assets.

What else to know

• This was a new position for Miller Value Partners, representing 3.92% of its reportable assets under management as of December 31, 2025.
• Top holdings after the filing:
  • NYSE: NBR: $32.73 million (11.5% of AUM).
  • NYSE: LNC: $22.48 million (7.9% of AUM).
  • NYSE: GTN: $19.30 million (6.8% of AUM).
  • NYSE: TDAY: $17.53 million (6.2% of AUM).
  • NYSE: QUAD: $17.17 million (6.0% of AUM).
• As of Feb. 13, 2026, shares of Dauch Corporation were priced at $7.25.
• Dauch shares rose 52.6% over the past year, outperforming the S&P 500 by 40.84 percentage points.

Company Overview

Company Snapshot

• Designs, engineers, and manufactures driveline and metal forming technologies for electric, hybrid, and internal combustion vehicles, with products including axles, driveshafts, differential assemblies, and safety-critical components.
• Operates through Driveline and Metal Forming segments, generating revenue by supplying advanced automotive parts and systems to vehicle manufacturers globally.
• Serves automotive OEMs and commercial vehicle manufacturers across North America, Asia, Europe, and South America.

Dauch Corporation is a leading supplier of driveline and metal forming technologies, supporting a broad spectrum of vehicle architectures including electric, hybrid, and traditional internal combustion platforms. With a global footprint and a diverse product offering, the company leverages engineering expertise to address evolving automotive industry demands. Its scale and focus on both innovation and operational efficiency position it as a competitive partner to major automakers worldwide.

What this transaction means for investors

It is often helpful for investors to know what large institutional managers are doing, as it can help introduce them to stocks they may not know about. If nothing else, it gives investors a jumping-off point to research the stock to see if it’s worth owning.

Dauch is a prime example of a stock many investors have probably never heard of. And when you see a firm like Miller Value Partners buying shares, it should catch your attention even more. Miller Value Partners was founded by noted value investor Bill Miller, and it is now run by his son, Bill Miller IV. But the founder still owns a stake in the company.

Dauch used to be known as American Axle and Manufacturing, but it just rebranded to Dauch in January. Dauch is not really a value play, with a P/E ratio of 21 and a forward P/E of 28. But it does have a low price-to-sales ratio of 0.12. It also has an impressive outlook for fiscal 2026.

The firm is calling for revenue to almost double in 2026 to a range of $10.3 billion to $10.7 billion, up from $5.8 billion last year. Adjusted EBITDA is targeted to reach $1.3 billion to $1.4 billion this year, up from $743 million in fiscal 2025. This is partially boosted by its acquisition of Dowlais in February.

The stock is down 12% year-to-date, but analysts rate it a buy with a median price target of $9 per share, suggesting 61% upside.

Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool recommends USA Today. The Motley Fool has a disclosure policy.