Why a Major Investor Cut IES Holdings Exposure by $12 Million Amid a Big Stock Rally
Key Points
New York-based JB Capital Partners decreased its stake in IES Holdings by 41,004 shares during the third quarter.
The net position change from the previous period was about $12.06 million.
The fund now holds just 841 shares valued at $334,424 as of September 30.
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On November 13, New York-based JB Capital Partners disclosed in a U.S. Securities and Exchange Commission filing that it sold 41,004 shares of IES Holdings (NASDAQ:IESC), reducing its position by $12.06 million.
What Happened
According to a filing with the SEC dated November 13, JB Capital Partners LP sold 41,004 shares of IES Holdings during the third quarter. The transaction reduced its stake to just 841 shares with a quarter-end value of $334,424.
What Else to Know
The transaction left IES Holdings at just 0.06% of JB Capital Partners LP’s reportable AUM after the quarter. The position previously accounted for 2.3% of the fund’s assets under management as of June 30.
Top holdings after the filing:
- NASDAQ:RDNT: $108.53 million (18.6% of AUM)
- NYSE:RYI: $48.58 million (8.3% of AUM)
- NYSE:TPC: $47.20 million (8.1% of AUM)
- NYSE:CNR: $38.97 million (6.7% of AUM)
- NYSE:OPY: $37.25 million (6.4% of AUM)
As of Friday, shares of IES Holdings were priced at $404.40, up a staggering 86% over the past year and well outperforming the S&P 500, which is instead up about 15%.
Company Overview
| Metric | Value |
|---|---|
| Price (as of Friday) | $404.40 |
| Market capitalization | $8.05 billion |
| Revenue (TTM) | $3.37 billion |
| Net income (TTM) | $305.98 million |
Company Snapshot
- IES Holdings provides integrated electrical and technology systems, including design, installation, and maintenance for commercial, industrial, communications, infrastructure, and residential projects.
- The company operates a diversified business model with revenue streams from electrical contracting, network infrastructure, power distribution products, and residential electrical and solar installations.
- It serves a broad customer base spanning office buildings, manufacturing and chemical facilities, data centers, healthcare, educational institutions, municipal infrastructure, and residential developers.
IES Holdings is a diversified engineering and construction company with a national footprint and a focus on delivering specialized electrical and technology solutions. Its multi-segment strategy enables exposure to multiple end markets, including commercial, industrial, communications, infrastructure, and residential sectors. The company leverages its expertise in integrated systems and custom-engineered products to maintain a competitive edge in complex, large-scale projects.
Foolish Take
IES Holdings is coming off one of the strongest operating periods in its history, with fiscal 2025 revenue up 17% to $3.37 billion and record earnings, including net income that jumped 40% year over year. Meanwhile, the company’s backlog climbed to roughly $2.37 billion, giving the company unusually clear visibility into future demand, particularly from data centers and infrastructure projects.
Against that backdrop, trimming makes sense. IES shares are up roughly 86% over the past year and have significantly outpaced the broader market. For a concentrated portfolio, locking in gains after a parabolic run can be less about conviction fading and more about risk control. For long-term investors, the signal is mixed but not bearish. IES has momentum, strong margins, zero net debt, and growing exposure to high-demand end markets. So ultimately, this looks less like smart money fleeing and more like disciplined money resetting exposure after a stock did exactly what it was supposed to do.
Glossary
Assets Under Management (AUM): The total market value of investments managed by a fund or investment firm.
Reportable Assets: Investments that must be disclosed in regulatory filings, typically above a certain threshold.
Stake: The ownership interest or shareholding a fund or investor has in a company.
Position: The amount of a particular security or investment held by an investor or fund.
Top Holdings: The largest investments in a fund's portfolio, usually by market value.
Quarter-end: The last day of a fiscal quarter, used as a reference point for financial reporting.
Outperforming: Achieving better returns than a benchmark index or comparable investment.
Integrated Systems: Combined solutions that connect multiple technologies or services to work together as a unified system.
Diversified Business Model: A strategy involving multiple revenue streams or business segments to reduce risk.
End Markets: The industries or sectors that ultimately use a company's products or services.
Custom-engineered Products: Items designed and manufactured to meet specific customer requirements or project needs.
TTM: The 12-month period ending with the most recent quarterly report.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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