Auto Parts Stock Up 42% in a Year, but One Investor Cashed Out a $6 Million Stake Last Quarter

On February 17, 2026, Beaconlight Capital disclosed selling 124,431 shares of Advance Auto Parts (NYSE:AAP) in the fiscal fourth quarter ended December 31, 2025, an estimated $6.24 million trade based on quarterly average pricing.

What happened

According to an SEC filing dated February 17, 2026, Beaconlight Capital reduced its position in Advance Auto Parts (NYSE:AAP) by 124,431 shares during the fiscal fourth quarter ended December 31, 2025. The estimated value of the shares sold was $6.24 million, based on the average closing price for the quarter. The fund’s remaining position at quarter end was 10,920 shares, worth $429,156. The position’s value declined by $7.88 million, reflecting both the sale and stock price changes.

What else to know

• This was a sale, reducing the position to 0.25% of 13F AUM; the stake was previously 4.1% of the fund's AUM as of the prior quarter.
• Top holdings after the filing:
  • NYSE: CSTM: $25.26 million (14.8% of AUM)
  • NYSE: REZI: $24.35 million (14.2% of AUM)
  • NYSE: SXT: $12.97 million (7.6% of AUM)
  • NYSE: GPOR: $9.69 million (5.7% of AUM)
  • NYSE: TECK: $9.16 million (5.3% of AUM)
• As of Thursday, AAP shares were priced at $53.38, up 42% over the past year and well surpassing the S&P 500’s roughly 20% gain in the same period.

Company overview

Company snapshot

• Advance Auto Parts offers automotive replacement parts, accessories, batteries, and maintenance items for a wide range of vehicles, including cars, SUVs, and trucks.
• The firm generates revenue through direct retail sales, professional installer channels, and e-commerce platforms, with a focus on both do-it-yourself and professional markets.
• It serves professional installers, independent repair shops, and individual consumers across the United States, Puerto Rico, Canada, and select international markets.

Advance Auto Parts is a leading specialty retailer in the automotive aftermarket, operating thousands of stores and branches across North America. The company leverages a multi-channel distribution model to serve both professional and retail customers, supported by a broad product assortment and value-added services. Its scale and diverse customer base provide a competitive advantage in a fragmented market, positioning the company for continued relevance in automotive parts distribution.

What this transaction means for investors

With its stock tumbling about 70% over the past five years, Advance Auto Parts is showing signs of recovery, even if the path forward remains uneven.

The company’s latest results show early progress in its restructuring effort. Comparable sales returned to growth in 2025 after three years of decline, while adjusted operating margin expanded over 200 basis points to 2.5% for the year as cost controls and sourcing initiatives began to take hold. Net sales, meanwhile, fell to $8.6 billion from $9.1 billion in 2024, but adjusted operating income climbed to $216 million, up very meaningfully from $35 million in 2024.

Management believes the turnaround still has room to run. Guidance for 2026 calls for comparable sales growth of about 1% to 2% and further margin expansion as the company continues optimizing its store footprint and supply chain.

Against that backdrop, the sharp reduction in the position appears more like portfolio rebalancing than a verdict on the retailer’s prospects. AAP shares have surged 38% this year alone. If management executes on its turnaround plan, it seems reasonable to believe they could further recoup losses.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool recommends Teck Resources. The Motley Fool has a disclosure policy.