5 Best Stocks to Buy Today According to Value Investor David Abrams

2. Asbury Automotive Group, Inc. (NYSE:ABG)

Abrams Capital’s Stake Value: $416 million

Percentage of Abrams Capital’s 13F Portfolio: 9.08%

Number of Hedge Fund Holders: 22

Asbury Automotive Group, Inc. (NYSE:ABG) is an American automotive retailer which sells new and old cars, alongside replacement and maintenance parts. It also provides collision recovery services in addition to finance and insurance for vehicles.

Abrams Capital’s stake in Asbury Automotive Group, Inc. (NYSE:ABG) for Q3 2021 equaled $416 million and came through 2 million shares, making it the company’s largest investor. It represented 9.08% of the fund’s portfolio. 22 of the 867 hedge funds owned the automotive group’s shares in the third quarter of last year according to Insider Monkey’s research.

Asbury Automotive Group, Inc. (NYSE:ABG)’s largest investor after Mr. Abrams is Lauren Taylor Wolfe’s Impactive Capital who owns 1 million shares worth $199 million.

For its fiscal Q3, Asbury Automotive Group, Inc. (NYSE:ABG) brought in $2.4 billion in revenue and $7.36 in non-GAAP EPS, pleasing Wall Street by beating analyst estimates for both.

However, Morgan Stanley lowered Asbury Automotive Group, Inc. (NYSE:ABG)’s price target to $180 from $205 in a December 2021 note which outlined that problems with legacy automakers might not bode well for the company in the future despite strong earnings.