Lioneye Capital Management Further Increases Stake In Asbury Automotive Group Inc (ABG)

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Does Asbury Automotive Group, Inc. (NYSE:ABG) still have some upside potential? Stephen V. Raneri, the manager of LionEye Capital Management, seems to think so, having again boosted his investment in the company. As reported in a 13D filing with the Securities and Exchange Commission, the fund now holds roughly 2.58 million shares of the company, which account for 9.7% of its outstanding common stock. According to LionEye Capital’s latest 13F filing, the fund also held 175,200 shares underlying call options as of March 31. The fund previously held 2.33 million shares of Asbury Automotive Group, Inc. (NYSE:ABG) according to its previous 13D filing, submitted on May 5.


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Asbury Automotive Group, Inc. (NYSE:ABG) is a US automotive retailer that provides a wide range of services, including vehicle sales and maintenance, insurance, and services contracts. Financially, the company has been thriving in the recent past, reporting revenues of $1.69 billion, up 12% year-over-year, and earnings per share of $1.52 for the second quarter of 2015. The stock has followed suit and appreciated by 11.5% so far this year. Asbury’s good financial performance has paved the way for high expectations for the third quarter of 2015, with analysts expecting $1.66 billion in revenues and $1.43 in earnings per share. Among the hedge funds we track, Glenn Fuhrman and John Phelan, the managers of MSD Capital, held the biggest investment in Asbury Automotive Group, Inc. (NYSE:ABG) as of March 31, holding 2.22 million shares (which LionEye has since surpassed). Ricky Sandler of Eminence Capital is also a fan of this company, having boosted his stake by 11% during the first quarter to 1.94 million shares.

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