Moody Aldrich Fully Exits 136K SKWD Shares Worth $7.8 Million

Moody Aldrich Partners LLC fully liquidated its position in Skyward Specialty Insurance Group, Inc. (NASDAQ:SKWD) in the third quarter, an estimated $7.84 million trade.

What happened

According to a filing with the Securities and Exchange Commission dated October 21, 2025, Moody Aldrich Partners LLC sold all 135,635 shares of Skyward Specialty Insurance Group during the quarter. The estimated transaction value was $7.84 million, calculated using the average closing price for the period. The fund reported no remaining position in the company as of September 30, 2025.

What else to know

Moody Aldrich Partners LLC sold out of SKWD; the position now represents 0% of reportable AUM. Previously, the position accounted for 1.5% of the fund's AUM.

Top holdings after the filing:

• CADE: $10.9 million (2.1% of AUM)
• INDB: $10.5 million (2% of AUM)
• PTGX: $9.5 million (1.8% of AUM)
• KTOS: $9.5 million (1.8% of AUM)
• PIPR: $8.4 million (1.6% of AUM)

As of October 23, 2025, Skyward Specialty Insurance Group shares were priced at $46.64, down 7.7% YTD, trailing the S&P 500 by 22.2 percentage points during the same period.

Company Overview

Company Snapshot

• Offers a broad range of commercial property and casualty insurance products, including general liability, excess liability, professional liability, commercial auto, group accident and health, property, surety, and workers' compensation coverage.
• Generates revenue primarily by underwriting insurance policies and managing risk for clients.
• Serves clients across the United States.
• Skyward Specialty Insurance Group, Inc. is a Houston-based provider of specialty commercial property and casualty insurance solutions. It underwrites a variety of commercial property and casualty insurance products.

Foolish take

Moody Aldrich Partners just sold its entire $7.8 million stake in Skyward Specialty Insurance Group, completely exiting the Houston-based insurer after a tough year for the stock. With shares down almost 8% in 2025 through late October, Skyward has lagged the broader market, even though it has a diverse portfolio of commercial insurance products, from liability to workers’ compensation. This sale reduced the position from 1.5% of Moody Aldrich’s portfolio to zero, suggesting that the company is reallocating funds toward sectors with stronger short-term momentum.

Skyward has carved out a niche serving businesses with complex or high-risk insurance needs, and its disciplined underwriting approach has supported steady growth since its 2023 IPO. However, the broader insurance sector has faced pressure on profit margins due to competitive pricing and rising loss costs. Moody Aldrich’s exit likely reflects tactical portfolio management rather than concern about the company’s fundamentals—Skyward remains a well-positioned specialty insurer in a competitive market.

Glossary

Liquidated position: Selling all shares of a particular investment, resulting in no remaining ownership.
13F reportable assets under management (AUM): The total value of securities a fund manager must report quarterly to the SEC on Form 13F.
Stake: The amount of ownership or investment a fund or individual holds in a company.
Trailing twelve months (TTM): The 12-month period ending with the most recent quarterly report.
Underwriting: The process of evaluating and assuming risk in exchange for a fee, typically in insurance or securities issuance.
Commercial property and casualty insurance: Insurance products protecting businesses against property damage and liability risks.
Excess liability: Insurance coverage that provides protection above the limits of an underlying policy.
Professional liability: Insurance covering professionals against claims of negligence or mistakes in their services.
Surety: A guarantee by a third party (the surety) that a party will fulfill contractual obligations.
Workers' compensation coverage: Insurance providing wage replacement and medical benefits to employees injured on the job.

Adam Palasciano has no positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Skyward Specialty Insurance Group. The Motley Fool recommends Protagonist Therapeutics. The Motley Fool has a disclosure policy.