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

By Josh Kohn-Lindquist – Mar 12, 2026 at 6:43PM ESTKey PointsH Partners bought 375,000 Advance Auto Parts shares; estimated transaction value ~$18.80 million (based on quarterly average price).Quarter-end position value rose by $3.13 million, reflecting both share change and stock price moves.The transaction represented an 11.9% increase relative to the 13F reportable AUM.Post-trade stake: 900,000 shares valued at $35.37 million.Advance Auto Parts position now 22.4% of fund AUM.What happenedAccording to a SEC filing dated Feb. 17, 2026, H Partners Management, LLC increased its holding in Advance Auto Parts (AAP 1.26%) 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 knowH 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 overviewMetricValueRevenue (TTM)$8.6 billionNet income (TTM)$68.00 millionDividend yield1.9%Price (as of market close March 12, 2026)$52.66Company snapshotAdvance 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 investorsH 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.About the AuthorJosh Kohn-Lindquist is a contributing Motley Fool stock market analyst covering consumer goods, industrials, and technology stocks. Previously, Josh was a senior mutual fund accountant at Gemini Fund Services. He holds a bachelor’s degree in business management from the University of South Dakota.TMFJorykoX@JorykoliStocks MentionedAdvance Auto PartsNYSE: AAP$52.66(-1.26%)-$0.67*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.