H Partners Buys Another $19 Million in Advance Auto Parts Amid Stock's Ongoing Turnaround

What happened

According to a SEC filing dated Feb. 17, 2026, H Partners Management, LLC increased its holding in Advance Auto Parts (NYSE:AAP) by 375,000 shares during the fourth quarter. The estimated transaction value is $18.80 million, calculated from the quarterly average share price. At quarter-end, the position’s value was $35.37 million.

What else to know

H Partners’ buy lifts Advance Auto Parts to 22.4% of 13F AUM, making it the fund’s third-largest holding.

• Top holdings after the filing:
  • Six Flags Entertainment: $71.33 million (45.2% of AUM)
  • Harley-Davidson: $51.23 million (32.4% of AUM)
  • Advance Auto Parts: $35.37 million (22.4% of AUM)

As of March 12, 2026, Advance Auto Parts shares were up 44.2% over the last year, outperforming the S&P 500 by 24 percentage points.

Company overview

Company snapshot

Advance Auto Parts:

• Offers automotive replacement parts, accessories, batteries, and maintenance items for a broad range of vehicles, including domestic and imported cars, SUVs, and trucks.
• Generates revenue through retail and commercial sales across physical stores, branches, and online channels, supported by value-added services such as installation and diagnostics.
• Serves both professional installers and do-it-yourself customers, targeting the automotive aftermarket segment in North America and select international markets.

Advance Auto Parts is a leading specialty retailer in the automotive aftermarket, operating thousands of stores and branches across the United States, Canada, and select international locations. The company leverages a multi-channel approach and a broad product assortment to address the needs of both professional and retail customers. Its scale, established brands, and comprehensive service offerings provide a competitive advantage in a fragmented market.

What this transaction means for investors

H Partners is a new activist investment firm that emphasizes buying underperforming equities that offer higher risk-reward ratios. In this sense, Advance Auto Parts is a perfect stock for them to buy as they are in the midst of a broad transformation, and hopefully a turnaround. Down 78% from its 2022 high, AAP watched peers O’Reilly Auto and AutoZone rocket past it as it struggled with mismanagement, supply chain issues, and poor pricing strategies.

However, once H Partners came on board alongside a couple of other activist investment firms, a new CEO was appointed, and a few board members with years of industry experience were added. Over the last year, AAP has started to show signs of life, with its stock up over 40% and its same-store sales positive again. The company sold 700 of its roughly 5,000 underperforming stores, exited California completely, and sold its low-margin wholesale distribution business to reduce its perilous debt load.

Following these moves, AAP’s adjusted operating income margin improved from -2.5% in the second half of 2023 to 2.5% in 2025. Management guided for this figure to rise to roughly 4% in 2026 and to one day hit 7% once it is firing on all cylinders. If the steadily streamlining company can get even close to these figures, it could be a steal at just 0.37 times sales. By comparison, O’Reilly Auto and AutoZone trade at 4.5 and 3.2 times sales, as the market assigns a premium valuation on their vastly more efficient operations. Powered by its new management -- and bringing in Palantir and its software to improve its product assortment in each market -- Advance Auto Parts is the rare turnaround stock I might actually believe in, and I see why H Partners is interested in adding shares.

Josh Kohn-Lindquist has positions in AutoZone, O'Reilly Automotive, and Palantir Technologies. The Motley Fool has positions in and recommends Palantir Technologies and Six Flags Entertainment. The Motley Fool has a disclosure policy.