Is AAON a Buy After Financial Services Company Nepsis Takes a New Position in the Stock?
Key Points
Nepsis bought 92,916 shares of AAON for $8,682,071.
The transaction represents a 2.75% change in 13F reportable assets under management as of Sept. 30, 2025.
Post-trade, Nepsis' AAON stake totaled 92,916 shares valued at $8.68 million.
AAON is a new position and accounts for 2.75% of the fund's AUM as of Q3 2025, and is outside the fund’s top five holdings.
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Financial services company Nepsis Inc. initiated a new position in AAON (NASDAQ:AAON), acquiring 92,916 shares valued at approximately $8.68 million as of Q3 2025, according to an October 23, 2025, SEC filing.
What happened
According to a filing with the Securities and Exchange Commission dated October 23, 2025, Nepsis Inc. reported a new position in AAON, purchasing approximately 92,916 shares. The estimated value of the trade was $8,682,071. This new stake increased the fund’s total reportable equity positions to 30.
What else to know
This is a new position for Nepsis, which now represents 2.75% of the fund’s 13F assets under management.
Top holdings for Nepsis as of Q3 2025 are:
- UTHR: $18.62 million (5.9% of AUM)
- AMD: $18.46 million (5.9% of AUM)
- SHOP: $18.13 million (5.7% of AUM)
- DVN: $16.50 million (5.2% of AUM)
- SMCI: $16.25 million (5.2% of AUM)
As of October 23, 2025, AAON shares were priced at $101.75, down 9.8% over the past year and underperforming the S&P 500 by 19.8 percentage points.
Company Overview
| Metric | Value |
|---|---|
| Market Capitalization | $8.02 billion |
| Revenue (TTM) | $1.26 billion |
| Net Income (TTM) | $122.09 million |
| Price (as of market close 2025-10-23) | $101.75 |
Company Snapshot
AAON manufactures HVAC equipment and has a presence in the North American commercial markets. It offers rooftop units, data center cooling solutions, cleanroom systems, chillers, packaged outdoor mechanical rooms, air handling units, makeup air units, energy recovery units, condensing units, geothermal/water-source heat pumps, coils, and controls.
IMAGE SOURCE: GETTY IMAGES.
The company generates revenue through engineering, manufacturing, and sales of HVAC equipment, primarily via a network of independent manufacturer representatives and internal sales teams.
AAON serves commercial customers in sectors such as retail, manufacturing, education, lodging, supermarkets, data centers, and medical and pharmaceutical across the United States and Canada.
Foolish take
When a financial services company, such as Nepsis, initiates a position in a stock, the move is worth paying attention to. It suggests Nepsis holds a bullish outlook for AAON.
This is significant since AAON's business experienced headwinds in the second quarter. Sales dropped 0.6% year over year to $311.6 million, while costs increased, resulting in a 69% plunge in diluted earnings per share to $0.19.
The company noted rising costs were due to the Trump administration's aggressive tariff policies, introduced in April. Its sales drop was blamed on the implementation of a new enterprise resource planning system (ERP), which hurt production.
Perhaps Nepsis saw these impacts as short term, and with the stock dropping to a 52-week low of $62 in August, jumped on the opportunity to scoop up shares at a discount. The move makes sense since AAON's Q2 sales decline was slight, and the company expects full-year revenue to experience growth in the low teens.
Once AAON gets past the bumps with its new ERP system, it's poised to continue growing sales. Its business looks solid, and the dip in stock price makes now a good time to buy and hold AAON stock for the long run.
Glossary
13F: A quarterly SEC filing required from institutional investment managers to disclose their equity holdings.
Assets Under Management (AUM): The total market value of all assets managed by a fund or investment firm.
Position: The amount of a particular security or asset held by an investor or fund.
Reportable Equity Positions: Stock holdings that must be disclosed in regulatory filings due to size or regulatory requirements.
Stake: The ownership interest or amount of shares held in a company by an investor or fund.
Manufacturer Representatives: Independent agents who sell a company's products to customers, often on commission.
Rooftop Units: HVAC systems installed on building roofs, commonly used for heating and cooling commercial spaces.
Chillers: Machines that remove heat from a liquid, used in large-scale air conditioning systems.
Air Handling Units: Devices that regulate and circulate air as part of a heating, ventilating, and air-conditioning system.
Makeup Air Units: HVAC equipment that provides fresh air to replace air exhausted from a building.
Energy Recovery Units: Systems that capture and reuse energy from exhaust air to improve HVAC efficiency.
TTM: The 12-month period ending with the most recent quarterly report.
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Robert Izquierdo has positions in Advanced Micro Devices, Shopify, and Super Micro Computer. The Motley Fool has positions in and recommends Advanced Micro Devices, Shopify, and United Therapeutics. The Motley Fool recommends Aaon. The Motley Fool has a disclosure policy.
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