What to Know About This Fund's $12 Million Bet on Dauch Stock

2026-02-23 07:48:27

On February 17, 2026, Atlantic Investment Management disclosed a new position in Dauch Corporation (DCH 0.71%), acquiring an estimated $12.07 million stake based on quarter-end pricing.

What happened

According to an SEC filing dated February 17, 2026, Atlantic Investment Management initiated a new position in Dauch Corporation (DCH 0.71%) by purchasing 1,883,000 shares. The net position change for the quarter, including price shifts, was $12.07 million.

What else to know

This marks a new position for Atlantic Investment Management, with Dauch Corporation representing 6.8% of its reportable 13F AUM after the trade
Top holdings after the filing:
- NYSE:AXTA: $33.09 million (18.6% of AUM)
- NYSE:KEX: $24.57 million (13.8% of AUM)
- NYSE:FLS: $21.79 million (12.3% of AUM)
- NYSE:APTV: $21.00 million (11.8% of AUM)
- NYSE:OSK: $19.42 million (10.9% of AUM)
As of February 17, 2026, Dauch Corporation shares were priced at $7.28, up 26.0% over the past year and outperforming the S&P 500’s roughly 13% gain in the same period.

Company overview

Metric	Value
Price (as of market close February 17, 2026)	$7.28
Revenue (TTM)	$5.84 billion
Net income (TTM)	($19.70 million)

Company snapshot

Dauch Corporation designs and manufactures driveline and metal forming technologies for electric, hybrid, and internal combustion vehicles, including axles, driveshafts, and safety-critical components.
The company generates revenue through the sale of engineered automotive systems and components to original equipment manufacturers across global markets.
It serves light vehicle, commercial vehicle, and off-highway vehicle manufacturers in North America, Asia, Europe, and South America.

Dauch Corporation is a Detroit-based manufacturer specializing in advanced driveline and metal forming solutions for the global automotive industry. With a diversified product portfolio and operations across multiple continents, the company addresses the evolving needs of electric, hybrid, and traditional vehicle platforms.

What this transaction means for investors

This move is interesting because it shows Atlantic Investment leaning in even as Dauch’s headline numbers look messy. The company posted a full-year net loss of $19.7 million on $5.84 billion in sales as the firm’s fourth-quarter net loss widened due in large part to larger acquisition and interest-related costs. But underneath that noise, Adjusted EBITDA reached $743.2 million for the year, with margins expanding to 12.7%, and adjusted earnings per share of $0.53.

More importantly, 2026 guidance implies scale. Management is targeting $10.3 to $10.7 billion in sales and $1.3 to $1.4 billion in Adjusted EBITDA, including $50 to $75 million of synergy benefits from the Dowlais combination. That is a different earnings base than 2025.

Within the broader portfolio, this fits a clear pattern. Other top holdings skew industrial and transportation heavy. A 7% allocation to a driveline and metal forming supplier aligns with that bias toward global manufacturing exposure.

For long-term investors, the question is execution. If synergies materialize and margins hold above 12%, today’s valuation could look conservative. If integration falters, leverage and restructuring costs will matter fast.

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