Is Asbury Automotive Stock a Buy After Investment Firm Magnolia Group Purchased Shares Worth Nearly $11 Million?
Key Points
Magnolia Group bought 44,500 shares of Asbury Automotive with an estimated transaction value of $10.82 million based on the stock's quarterly average price.
Magnolia Group's purchase represents a 1.71% increase relative to the fund’s 13F reportable assets under management.
Post-trade, Magnolia Group's Asbury holdings totaled 282,623 shares, valued at $69.09 million.
Asbury Automotive is now 10.95% of Magnolia Group's AUM, making it the 3rd-largest holding.
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What happened
According to a filing with the Securities and Exchange Commission dated October 29, 2025, investment advisory firm Magnolia Group, LLC reported purchasing 44,500 additional shares of Asbury Automotive Group (NYSE:ABG). The estimated trade size was $10.82 million based on the average closing price.
What else to know
The fund increased its position in the Asbury Automotive Group to a total of 282,623 shares valued at $69.09 million. This stock now accounts for 10.95% of Magnolia Group's reported U.S. equity assets.
Top holdings after the filing:
- NNI: $209.26 million (33.2% of AUM as of 2025-09-30)
- BOC: $73.11 million (11.6% of AUM as of 2025-09-30)
- ABG: $69.09 million (11.0% of AUM)
- ARLP: $65.48 million (10.0% of AUM as of 2025-09-30)
- CNR: $61.11 million (9.7% of AUM as of 2025-09-30)
As of October 28, 2025, Asbury Automotive shares were priced at $235.89. Its five-year revenue CAGR stands at 19%. The forward P/E ratio is 8.6 for FY2026, and its enterprise value to EBITDA ratio is 8.5 as of Sept. 30, 2025.
Magnolia Group held 11 reportable positions with $630.78 million in U.S. equities.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $17.83 billion |
| Net Income (TTM) | $560.80 million |
| Price (as of market close 2025-10-28) | $235.89 |
| One-Year Price Change | 4.57% |
Company Snapshot
Asbury Automotive Group, Inc. is a U.S. automotive retailer with dealerships and service centers. The company has diversified revenue streams, including vehicle sales, after-sales services, and financial products.
IMAGE SOURCE: GETTY IMAGES.
Asbury offers new and used vehicles, vehicle repair and maintenance, replacement parts, collision repair, and finance and insurance products.
It generates revenue primarily through automotive retail sales, service operations, and finance and insurance commissions. Asbury serves automotive retail customers across the United States.
Foolish take
Magnolia Group's purchase of additional Asbury Automotive stock is noteworthy because it bumped up the position from 8.7% of the investment firm's AUM in the second quarter to 11% in Q3. This demonstrates Magnolia Group's bullish take on Asbury. It's easy to see why.
Asbury Automotive is having a successful year despite the macroeconomic headwinds of inflation and ever-evolving tariff policies. The company reported strong Q3 revenue growth of 13% year over year to $4.8 billion, an all-time high.
However, Asbury stock is down about 2% in 2025 through Oct. 29. A key factor for this is an ongoing lawsuit from the U.S. Federal Trade Commission (FTC), which accuses Asbury of charging hidden fees to consumers, as well as of racial discrimination. Until the FTC lawsuit is resolved, buying Asbury shares will hold some risk.
As of Oct. 29, Asbury stock is well off its 52-week high of $312.56 reached in January. This and its strong 2025 performance may be why Magnolia Group decided to expand its position. Asbury Automotive seems like a solid business to invest in, if not for the shadow of the FTC's lawsuit.
Glossary
13F reportable assets: Investment holdings that institutional managers must disclose quarterly to the SEC if above a certain threshold.
AUM (Assets Under Management): The total market value of investments managed on behalf of clients by a fund or firm.
Quarterly average price: The average price of a security over a specific three-month period, used for valuation or reporting.
Forward P/E ratio: Price-to-earnings ratio using forecasted earnings for the next fiscal year, indicating expected valuation.
EV/EBITDA: Enterprise value divided by earnings before interest, taxes, depreciation, and amortization; measures company valuation relative to operating performance.
CAGR (Compound Annual Growth Rate): The annualized growth rate of an investment or metric over a specified time period.
TTM: The 12-month period ending with the most recent quarterly report.
U.S. equities: Shares of companies that are publicly traded on U.S. stock exchanges.
Reportable position: An investment holding that must be disclosed to regulators due to its size or regulatory requirements.
Automotive retail: The business of selling new and used vehicles directly to consumers through dealerships.
Finance and insurance products: Financial services offered by dealerships, such as loans, leases, and insurance policies for vehicle buyers.
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Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Boston Omaha and Nelnet. The Motley Fool has a disclosure policy.
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