Is Asbury Automotive (ABG) a Great Long-Term Buy?


Voss Money, an investment decision management agency, printed its fourth-quarter 2021 investor letter – a duplicate of which can be downloaded here. In Q4 2021, the Voss Benefit Fund, LP and the Voss Worth Offshore Fund, Ltd., returned +13.6% and +14.3% to buyers internet of charges and charges, respectively, when compared to +2.1% whole return for the Russell 2000, +3.9% rate return for the Russell 2000 Value, and +11.% total return for the S&P 500. Spare some time to check the fund’s best 5 holdings to have a clue about their top rated bets for 2022.

Voss Funds, in its Q4 2021 trader letter, talked about Asbury Automotive Team, Inc. (NYSE:ABG) and reviewed its stance on the business. Launched in 1995, Asbury Automotive Group, Inc. (NYSE:ABG) is a Duluth, Georgia-dependent automotive retail company with a $4.3 billion sector capitalization, and is presently spearheaded by its CEO, David W. Hult. Asbury Automotive Team, Inc. (NYSE:ABG) delivered an 8.15% return due to the fact the starting of the calendar year, even though its 12-month returns are up by 2.99%. The stock shut at $186.80 for each share on March 22, 2022.

Right here is what Voss Funds has to say about Asbury Automotive Team, Inc. (NYSE:ABG) in its Q4 2021 trader letter:

Asbury Automotive is an automobile dealer that we procured recently at ~5x earnings and no cost hard cash movement. We think the stock’s price has been partly obscured by their latest acquisitions alongside with car dealers having derated appreciably in excess of the past several months because of to perceived fears of “in excess of earning” in 2021 and 2022, as ordinary gain for each vehicle has shot up thanks to offer constraints. We have built a framework of “normalized earnings” for 2023 and concluded that ABG trades at ~7x earnings compared to a historical selection of 7-15x, or all around 11x on normal. We therefore imagine the stock can rerate to 11x normalized earnings, or all over 40-50% increased from our buy value of ~$160. Downside ought to be minimal provided the company’s really depressed multiples, even though we will be observing for an acceleration of premiums elevating which could whack what is presently pent-up need for vehicles.”

Car, Automotive, Oil

Car or truck, Automotive, Oil


Our calculations demonstrate that Asbury Automotive Group, Inc. (NYSE:ABG) unsuccessful to obtain a mark on our listing of the 30 Most Well-liked Shares Among Hedge Cash. Asbury Automotive Team, Inc. (NYSE:ABG) was in 32 hedge fund portfolios at the end of the fourth quarter of 2021, as opposed to 22 money in the previous quarter. Asbury Automotive Group, Inc. (NYSE:ABG) delivered a 14.17% return in the past 3 months.

In March 2022, we also shared one more hedge fund’s sights on Asbury Automotive Team, Inc. (NYSE:ABG) in one more short article. You can discover other letters from hedge resources and prominent buyers on our hedge fund investor letters 2021 Q4 web page.

Disclosure: None. This report is at first revealed at Insider Monkey.


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