Norwood Investment Partners, LP cut its position in Driven Brands Holdings Inc. (DRVN +4.13%) by an estimated $9.81 million, according to a November 12, 2025, SEC filing.
What Happened
Norwood Investment Partners, LP disclosed in a November 12, 2025, SEC filing that it sold 538,610 shares of Driven Brands Holdings Inc. during the third quarter. The estimated value change of approximately $9.81 million reduced the fund’s position to 239,438 shares, worth approximately $3.86 million at quarter-end. The number of reportable positions stood at 15 after the filing.
What Else to Know
This sale brought the DRVN stake to approximately 3.32% of 13F assets under management, down from approximately 10.24% the prior quarter.
Top holdings after the filing:
- NYSE: APG: $19.12 million (16.4% of AUM)
- NYSE: CWAN: $15.38 million (13.2% of AUM)
- NYSE: GFL: $12.55 million (10.8% of AUM)
- NASDAQ: FLYW: $11.65 million (10.0% of AUM)
- NASDAQ: MGNI: $9.37 million (8.1% of AUM)
As of November 11, 2025, Driven Brands shares were priced at $13.80, down 17.41% over the past year; shares have underperformed the S&P 500 by 29.79 percentage points.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $2.17 billion |
| Net income (TTM) | ($216.62 million) |
| Price (as of market close 2025-11-11) | $13.80 |
| 1-year price change | (17.41%) |
Company Snapshot
Driven Brands Holdings Inc. is a leading automotive services provider with a broad portfolio of brands and over 10,000 employees. The company leverages its scale and diverse service offerings to capture multiple revenue streams across retail and commercial markets.
- Provides automotive services including paint, collision repair, glass replacement, vehicle repair, car wash, oil change, and maintenance, as well as distribution of automotive parts and consumables.
- Operates a mixed model of company-operated, franchised, and independently operated stores, generating revenue from direct services, franchise fees, and product distribution.
- Serves retail and commercial customers across the United States, Canada, and internationally, targeting both individual vehicle owners and automotive repair businesses.
Foolish Take
The recent sale of $9.8 million worth of Driven Brands Holdings stock by Norwood Investment Partners, paints a mixed picture for retail investors. Here's why.
First off, the transaction itself appears quite bearish for Driven Brands stock. After all, Norwood sold approximately 70% of its position in Driven Brands. That reduced its Driven Brands position, as a percentage of its overall assets under management, from 10.2% to 3.3%. As a result, Driven Brands fell from the firm's 4th-largest holding to its 11th-largest stock holding (As of September 30, 2025, Norwood has 15 total stock holdings).
However, while the reduction is significant, Norwood didn't entirely close out its position in Driven Brands, which would have represented a more dramatic -- and decisive -- move. What's more, Driven Brands stock hasn't performed all that poorly this year. Granted its stock is down about 16% year-to-date, but much of that move has come in the last two months, with shares falling 27% since the start of September. Prior to then, shares had more or less kept pace with the S&P 500 year-to-date.
In summary, retail investors shouldn't view this transaction as a clear-cut case. While it's possible that this sale represents a significant shift in sentiment, it's far from undeniable.
Glossary
13F reportable assets: Investment holdings that institutional managers must disclose quarterly to the SEC, typically for funds over $100 million.
Assets under management (AUM): The total market value of investments managed by a fund or investment firm on behalf of clients.
Alpha: A measure of an investment's performance relative to a benchmark, showing excess return above the benchmark's return.
Stake: The ownership interest or investment a person or institution holds in a particular company or asset.
Franchise fees: Payments made by franchisees to a parent company for the right to operate under its brand and system.
Company-operated stores: Retail locations directly owned and managed by the parent company, not by franchisees or independent owners.
Franchised stores: Retail locations owned and operated by independent business owners under a licensing agreement with the parent company.
Independently operated stores: Stores run by third parties that are not directly owned or franchised by the parent company.
Quarter-end: The last day of a fiscal quarter, used as a reference point for financial reporting.
TTM: The 12-month period ending with the most recent quarterly report.
