Core Viewpoint - Holley Inc. (NYSE: HLLY) is currently considered a hold option due to strong growth in other segments, but a downward trend in its largest segment limits overall company growth [1] Company Analysis - Holley Inc. is experiencing strong growth in segments outside its main segment, which is facing challenges [1] - The guidance from the second quarter indicates potential concerns regarding the main segment's performance [1] Investment Strategy - The analysis emphasizes a bottom-up approach focusing on operational fundamentals, execution history, and sustainable growth drivers [1] - The investment philosophy combines income and value investing strategies, highlighting the importance of dividend yield as a risk mitigation criterion, especially in low coverage stocks [1]

Core Viewpoint - Holley Performance Brands has announced a secondary offering of 14,000,000 shares of its common stock at a price of $2.75 per share, with a 30-day option for underwriters to purchase an additional 2,100,000 shares [1] Group 1: Offering Details - The offering is being conducted by a selling stockholder controlled by Sentinel Capital Partners, and all net proceeds will go to the selling stockholder, with no shares being sold by the company [1] - The offering is expected to close on September 12, 2025, pending customary closing conditions [1] Group 2: Underwriters - J.P. Morgan and Jefferies are acting as lead book-running managers for the offering, while William Blair and Canaccord Genuity are serving as joint book-running managers [2] Group 3: Company Overview - Holley Performance Brands specializes in the design, manufacturing, and marketing of high-performance products for automotive enthusiasts, managing a portfolio of iconic brands [7] - The company focuses on four consumer verticals: Domestic Muscle, Modern Truck & Off-Road, Euro & Import, and Safety & Racing, aiming to impact the automotive aftermarket industry [8]

Core Viewpoint - Holley Performance Brands is launching a secondary offering of 14,000,000 shares of common stock, with proceeds going to a selling stockholder controlled by Sentinel Capital Partners, LLC, while the company itself will not receive any proceeds from this offering [1][3]. Company Overview - Holley Performance Brands specializes in the design, manufacturing, and marketing of high-performance products for automotive enthusiasts, managing a portfolio of iconic brands [8]. - The company focuses on four consumer verticals: Domestic Muscle, Modern Truck & Off-Road, Euro & Import, and Safety & Racing, which allows it to have a significant impact on the automotive aftermarket industry [8]. - Holley Performance Brands is recognized for its innovative approach and strategic acquisitions aimed at enhancing the enthusiast experience and driving growth [8]. Offering Details - The selling stockholder is expected to grant underwriters a 30-day option to purchase up to 2,100,000 additional shares of common stock [1]. - J.P. Morgan and Jefferies are acting as the lead book-running managers and representatives of the underwriters for this offering [3].

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Group 1: Company Overview - Holley Inc. (HLLY) currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating strong potential for performance [3][4] - Over the past quarter, HLLY shares have risen by 83.49%, and by 22.7% over the last year, significantly outperforming the S&P 500, which increased by 8.34% and 14.94% respectively [7] Group 2: Price Performance - HLLY shares have increased by 4.63% over the past week, while the Zacks Automotive - Original Equipment industry has decreased by 0.24% during the same period [6] - The monthly price change for HLLY is 96.08%, compared to the industry's performance of 4.94% [6] Group 3: Trading Volume - HLLY's average 20-day trading volume is 849,891 shares, which serves as a bullish indicator when combined with rising stock prices [8] Group 4: Earnings Outlook - In the past two months, three earnings estimates for HLLY have been revised upwards, increasing the consensus estimate from $0.19 to $0.23 [10] - For the next fiscal year, four estimates have also moved upwards with no downward revisions [10] Group 5: Conclusion - Considering the positive momentum indicators and earnings outlook, HLLY is positioned as a strong buy candidate for investors seeking short-term gains [12]

Core Viewpoint - Holley Inc. (HLLY) is showing potential for a bullish breakout as it has reached a key support level and experienced a "golden cross" in its moving averages [1][2]. Technical Analysis - A "golden cross" occurs when a stock's short-term moving average (50-day) crosses above its long-term moving average (200-day), indicating a bullish trend [2]. - The formation of a golden cross involves three stages: a downtrend that bottoms out, the crossover of moving averages, and a subsequent upward price movement [3]. Performance Metrics - HLLY has seen a significant rally of 84.3% over the past four weeks, suggesting strong momentum [4]. - The stock currently holds a 2 (Buy) rating on the Zacks Rank, indicating positive market sentiment [4]. Earnings Outlook - The earnings outlook for HLLY is favorable, with three upward revisions in earnings estimates over the past 60 days, and no downward revisions [4]. - The Zacks Consensus Estimate for HLLY has also increased, reinforcing the bullish sentiment [4]. Investment Consideration - Investors are encouraged to monitor HLLY for potential gains due to its technical indicators and positive earnings revisions [6].

Core Insights - Holley Performance Brands is launching new activations for its fall flagship events, including the 16th annual LS Fest East, which is the largest LS-powered celebration in the U.S. [1][2] - The event will feature new attractions such as Burnout Wars and Ultra4 USA off-road racing, aimed at enhancing engagement and expanding Holley's visibility through social media [2][3] - Holley emphasizes its mission to connect with automotive enthusiasts and foster community engagement through innovative experiences [3][5] Event Details - LS Fest East will take place at Beech Bend Raceway in Bowling Green, Kentucky, from September 5-7, 2025, followed by MoParty and Ford Festival later in the month [10] - The events are expected to draw tens of thousands of visitors, significantly benefiting the local economy through increased business activity [5] Economic Impact - Holley's events are projected to generate millions of dollars for the Bowling Green economy, benefiting local hotels, restaurants, and businesses [5] - The company is also leveraging social media to connect with over 1 million additional automotive enthusiasts online, enhancing brand presence and engagement [6] Strategic Partnerships - A new activation with Callaway Cars will debut at LS Fest East, showcasing the strategic partnership and shared passion for LS-powered performance [3][8] - Holley aims to create a powerful experience that encourages enthusiasts to return to its events year after year [7]

Core Insights - Holley Performance Brands has proactively reduced its debt by an additional $15 million, totaling $90 million in debt repayment since September 2023, demonstrating its commitment to strengthening its balance sheet and enhancing financial flexibility [1][2] - The recent debt paydown was executed through opportunistic repurchases of its first lien term loan facility at a discount, funded entirely with free cash flow, which is expected to generate up to $3.7 million in annualized net interest savings [2] Financial Performance - The company has experienced strong free cash flow generation, which has contributed to its ability to reduce debt and strengthen its balance sheet [2] - Holley expects to achieve a leverage ratio at or below 4.0x by year-end, marking its lowest level in over three years [2] Strategic Focus - Holley Performance Brands is recognized for its operational excellence and disciplined execution across teams, which has fueled core business growth for two consecutive quarters [2] - The company is committed to enhancing the enthusiast experience and driving growth through innovation, focusing on four consumer vertical groupings: Domestic Muscle, Modern Truck & Off-Road, Euro & Import, and Safety & Racing [4]

Summary of Holley (HLLY) FY Conference Call - August 12, 2025 Company Overview - Holley is a 120-year-old company known for serving automotive enthusiasts, with a consumer base of approximately 70 million enthusiasts, which is larger than many other consumer discretionary segments [3][2] - The company went public in 2021 and has since been focused on transforming into a billion-dollar platform in the consumer auto performance enthusiast space [5][4] Market Segmentation and Addressable Markets - Holley has organized its business into four distinct verticals: Domestic Muscle, Trucking Off-Road, Euro and Import, and Safety and Racing [5][6] - The total addressable market for Domestic Muscle is estimated at $5 billion, while Trucking Off-Road is $26 billion, Euro and Import is $14 billion, and Safety and Racing is also significant [7][8][9] - The company is seeing a shift in consumer interest towards vehicles from the late 1990s and early 2000s, indicating a long runway for growth in the Domestic Muscle segment [26][6] Financial Performance and Growth Strategy - Holley has posted back-to-back growth in its core business for two consecutive quarters, outperforming competitors in a flat market [14][18] - The company has focused on operational improvements and cost reductions to maintain margins and EBITDA, even in a challenging market [16][30] - Holley aims to reduce its net leverage from over four times to closer to three times through free cash flow generation and operational efficiency [37][38] Consumer Trends and Market Conditions - The company acknowledges that the automotive industry has faced challenges, with a depressed SAAR (Seasonally Adjusted Annual Rate) of 15 million vehicles, but believes that a return to 17 million is possible with lower interest rates and aggressive manufacturer rebates [22][23] - Holley’s consumer base remains stable and enthusiastic, with spending patterns expected to normalize post-COVID [24][59] Tariffs and Supply Chain Management - Holley has implemented various tariff mitigation strategies and believes it is well-positioned to navigate supply chain challenges better than competitors [30][32] - The company recognizes the complexities of moving supply chains out of China, emphasizing the importance of quality and craftsmanship [33][34] M&A Strategy and Future Outlook - Holley maintains a robust pipeline for M&A opportunities but is cautious about pursuing large transactions until leverage is optimized [41][42] - The company is focused on smaller deals that align with its growth strategy without jeopardizing its path to lower leverage [41][42] Investor Relations and Market Perception - Holley has seen a 60% increase in share performance over the last five days, attributed to consistent execution of its growth strategy [55][56] - The management emphasizes the importance of building credibility with investors by delivering on promises and maintaining operational excellence [55][58] Key Takeaways - Holley is positioned for growth in multiple automotive segments, with a strong focus on operational efficiency and market share expansion - The company is navigating macroeconomic challenges while maintaining a stable consumer base and exploring strategic M&A opportunities - Holley’s management is committed to improving investor relations and demonstrating the value of its business model through consistent performance and transparency

Core Insights - Holley Performance Brands and Callaway Cars have formed a partnership to develop performance packages for GM trucks and SUVs, aiming to enhance dealer network access and serve automotive enthusiasts [1][4][5] Partnership Overview - The collaboration combines Callaway's engineering expertise with Holley's operational capabilities to deliver turnkey, dealer-approved performance solutions [2][9] - The performance packages will target popular GM models including Silverado, Sierra, Suburban, Tahoe, Yukon, Escalade, and Corvette, with varying price points [3][4] Strategic Initiatives - Holley will lead digital and direct-to-consumer sales, while Callaway will focus on GM dealership outreach [3] - Investments will be made by Holley to support vehicle development, marketing, and activation efforts, including multi-channel outreach campaigns [6] New Facilities and Production Capacity - A new Callaway Performance Center will be established in Bowling Green, Kentucky, to enhance production capacity and availability of dealer-backed solutions [8] - The center will focus on Corvette and GM truck and SUV offerings, leveraging synergies with local production [7][8] Market Positioning - The partnership positions both companies to drive growth and deliver innovative products for automotive enthusiasts, enhancing their presence in the performance aftermarket [5][9] - Holley aims to solidify its status as a global leader in the automotive performance aftermarket through this collaboration [5]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential [1] - Identifying the right entry point for fast-moving stocks is challenging, and investors may end up with expensive shares that have limited upside [1] Group 2: Bargain Stocks with Momentum - Investing in bargain stocks that have recently shown price momentum may be a safer strategy [2] - The Zacks Momentum Style Score is useful for identifying strong momentum stocks, while the 'Fast-Paced Momentum at a Bargain' screen helps find attractively priced fast-moving stocks [2] Group 3: Holley Inc. (HLLY) Analysis - Holley Inc. (HLLY) has seen a price increase of 46.1% over the past four weeks, indicating growing investor interest [3] - HLLY gained 44.7% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - HLLY has a beta of 1.35, suggesting it moves 35% higher than the market in either direction [4] Group 4: Valuation and Earnings Estimates - HLLY has a Momentum Score of A, indicating a favorable time to invest [5] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [6] - HLLY is trading at a Price-to-Sales ratio of 0.64, meaning investors pay 64 cents for each dollar of sales, indicating a reasonable valuation [6] Group 5: Additional Investment Opportunities - Besides HLLY, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen [7] - Zacks offers over 45 Premium Screens tailored to different investing styles to help identify winning stock picks [8]