Paradice Investment Management Dumps $32 Million Worth of Openlane (NYSE: KAR) Stock: Should Investors Sell Too?
Key Points
Paradice sold 1,187,526 shares of Openlane, estimated at ~$32.36 million based on the average price for the quarter.
Post-sale position: 846,214 shares, valued at $24.35 million.
Openlane now makes up 5.46% of AUM, placing it outside the fund’s top five holdings.
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Paradice Investment Management LLC disclosed a significant reduction in its stake in Openlane (NYSE:KAR), selling 1,187,526 shares during the quarter, an estimated $32.36 million trade based on the average price for the quarter, according to an October 20, 2025, SEC filing.
What happened
According to a filing with the Securities and Exchange Commission dated October 20, 2025, Paradice Investment Management LLC sold 1,187,526 shares of Openlane during the quarter.
The estimated value of the shares sold was $32.36 million, based on the period’s average price.
The fund’s remaining position stands at 846,214 shares, worth $24.35 million.
What else to know
After the sale, Openlane represents 5.46% of the fund’s 13F reportable assets under management.
Top holdings after the filing:
- Globus Medical: $37.97 million (8.5% of AUM) as of 2025-09-30
- Envista: $36.81 million (8.3% of AUM) as of 2025-09-30
- Lear: $32.28 million (7.2% of AUM) as of 2025-09-30
- Mohawk Industries: $30.58 million (6.9% of AUM) as of 2025-09-30
- Generac: $30.35 million (6.8% of AUM) as of 2025-09-30
As of October 20, 2025, Openlane shares were priced at $26.47, up 62.99% over the past year, outperforming the S&P 500 by 47 percentage points over that time.
Company Overview
| Metric | Value |
|---|---|
| Market Capitalization | $2.81 billion |
| Revenue (TTM) | $1.88 billion |
| Net Income (TTM) | $151.00 million |
| Price (as of market close 2025-10-20) | $26.47 |
Company Snapshot
Openlane operates digital marketplaces for used vehicles, offering value-added services such as logistics, reconditioning, inspection, certification, and collateral recovery.
It generates revenue primarily through digital marketplace transaction fees and ancillary services, as well as floorplan financing for independent vehicle dealers.
The company serves commercial fleet operators, financial institutions, rental car companies, new and used vehicle dealers, and manufacturers.
Openlane, Inc. operates a digital marketplace for used vehicles, with operations in the United States, Canada, Continental Europe, and the United Kingdom.
The company leverages technology to streamline the buying and selling process for commercial and dealer clients, enhancing efficiency and transparency across the automotive supply chain.
With a diversified customer base and integrated ancillary services, the company offers digital marketplace and finance solutions in the auto remarketing industry.
Foolish take
Paradice Investment Management has steadily been selling shares of Openlane each quarter for the last two years.
Despite these sales, Openlane accounted for 10.1% of Paradice's portfolio prior to this quarter's large sale.
However, even after selling over 80% of the shares of Openlane it held just two years ago, the stock still accounts for 5.5% of the firm's portfolio, so this looks like a rebalancing effort more than an indictment on the stock.
Since Openlane's stock has roughly doubled over the last two years, Paradice is capitalizing on this booming price -- all while diversifying its portfolio.
Still trading at a reasonable price-to-free cash flow (P/FCF) ratio of 10, Openlane could still have plenty of room to run. This notion is especially true as its stock could benefit from the potential for lower interest rates incoming, which would help spark more activity in the used car market.
Ultimately, Openlane's cyclicality scares me away from making an investment. However, Openlane's No. 2 spot in its niche, its improving margins, and its opportunity for further success with the potential for lower interest rates incoming make it an intriguing turnaround stock to watch.
Glossary
AUM: Assets Under Management – The total market value of investments managed by a fund or investment firm.
13F reportable assets: Securities that institutional investment managers must disclose quarterly to the SEC on Form 13F.
Ancillary services: Additional services offered alongside a main product, such as logistics, reconditioning, or inspection in vehicle marketplaces.
Floorplan financing: A type of short-term loan allowing vehicle dealers to finance inventory purchases until the vehicles are sold.
Collateral recovery: The process of reclaiming assets, such as vehicles, used as security for a loan if the borrower defaults.
Digital marketplace: An online platform where buyers and sellers transact goods or services, in this case, used vehicles.
Outperforming: Achieving a better return or performance compared to a benchmark, such as the S&P 500.
Commercial fleet operators: Companies that manage large groups of vehicles for business purposes, such as rental or delivery services.
Transaction fees: Charges collected for facilitating the buying or selling of goods or services on a platform.
TTM: The 12-month period ending with the most recent quarterly report.
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Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Globus Medical. The Motley Fool has a disclosure policy.
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