Is Monday.com Stock a Buy, Sell, or Hold After Investment Firm Dilation Capital Dumped Its Entire Stake?

What happened

Dilation Capital Management LP disclosed in a Securities and Exchange Commission filing (SEC filing) dated October 30, 2025, that it sold its entire holding of 35,590 shares in Monday.com Ltd. (NASDAQ:MNDY) during the third quarter. The estimated transaction value was $11.19 million. The fund now reports no remaining position in the company.

What else to know

The fund fully exited its Monday.com stake, which previously accounted for 5.96% of assets under management. It now represents 0%.

Top holdings after the filing:

• BA: $24.39 million (12.1% of AUM)
• NVDA: $18.25 million (9.0% of AUM)
• DHI: $13.39 million (6.6% of AUM)
• AFRM: $13.11 million (6.5% of AUM)
• CP: $12.68 million (6.3% of AUM)

As of October 29, 2025, Monday.com shares were priced at $195.94, down 35.23% over the past year, trailing the S&P 500 by 52.4 percentage points.

Company Overview

Company Snapshot

Monday.com Ltd. offers cloud-based work management software that enables organizations to streamline collaboration and automate workflows through its modular Work OS platform.

IMAGE SOURCE: GETTY IMAGES.

The company's cloud-based Work OS platform enables organizations to build custom workflow applications for project management, CRM, marketing, and software development.

Monday.com serves a global customer base, including organizations, educational and government institutions, and business units across multiple regions. Headquartered in Tel Aviv, Israel, and founded in 2012, the company operates internationally with over 2,500 employees.

Foolish take

Investment advisory firm Dilation Capital Management's exit from its Monday.com position in the third quarter is noteworthy. Not only did Dilation Capital decide to sell all its shares, Monday.com was the fund's sixth largest holding in Q2.

One factor driving the exit could be the stock's high valuation. Monday.com shares had a price-to-earnings (P/E) ratio of over 300 at the end of Q2, and given such a sky-high valuation, Dilation Capital may have decided to cash in.

In terms of its business, Monday.com is doing well. Its Q2 revenue of $299 million represented strong 27% year-over-year growth. The company added a record number of customers spending at least $100,000 in annual recurring revenue during Q2.

These high-spending customers are helping Monday.com to maintain its revenue growth. The company estimated its 2025 full-year sales will increase about 26% year over year to $1.2 billion.

If you own shares in Monday.com, there isn't an urgent reason to sell right now. Continuing to hold the stock makes sense. But if you are considering buying shares, now is not a good time as Monday.com's valuation remains elevated with a P/E ratio over 200.

Glossary

Assets Under Management (AUM): The total market value of all investments managed by a fund or investment firm.
Exited Position: When an investor or fund sells all its shares in a particular company, fully closing the investment.
Top Holdings: The largest investments in a fund's portfolio, typically by market value or percentage of assets.
Work OS: A cloud-based platform that allows organizations to build and customize workflow and project management applications.
Trailing: Refers to a performance measure over a past period, often compared to a benchmark like the S&P 500.
TTM: The 12-month period ending with the most recent quarterly report.

Robert Izquierdo has positions in Boeing and Nvidia. The Motley Fool has positions in and recommends Canadian Pacific Kansas City, D.R. Horton, Monday.com, and Nvidia. The Motley Fool has a disclosure policy.