AZZ Stock Up 49% as One New Holder Discloses $8 Million Buy and Firm Reveals Updated Guidance
Key Points
Pier Capital added 70,967 AZZ shares during the fourth quarter.
The estimated transaction value was $7.61 million.
AZZ stake represents 1.21% of Pier Capital’s 13F assets under management.
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Pier Capital initiated a new position in AZZ (NYSE:AZZ), acquiring 70,967 shares in the fourth quarter for an estimated $7.61 million based on quarterly average pricing, according to a February 3 SEC filing.
What happened
Pier Capital disclosed in a recent SEC filing that it established a new stake in AZZ during the fourth quarter, acquiring 70,967 shares. As of December 31, the fund’s holding in AZZ was valued at $7.61 million, reflecting both the new purchase and prevailing market prices at quarter-end.
What else to know
As mentioned, this is a new position for Pier Capital, now representing 1.21% of its $626.39 million in reportable U.S. equity assets.
Top holdings after the filing:
- NYSE:MIR: $16.80 million (2.7% of AUM)
- NYSE:CWAN: $16.45 million (2.6% of AUM)
- NYSE:HXL: $11.99 million (1.9% of AUM)
- NASDAQ:ALHC: $10.80 million (1.7% of AUM)
- NASDAQ:FULT: $10.50 million (1.7% of AUM)
As of February 2, AZZ shares were priced at $127.71, up 49.2% over the past year and well outperforming the S&P 500 by 34.26 percentage points.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $1.62 billion |
| Net Income (TTM) | $321.54 million |
| Dividend Yield | 0.58% |
| Price (as of 2/2/26) | $127.71 |
Company snapshot
- AZZ provides galvanizing and metal coating solutions, welding services, specialty electrical equipment, and engineered services primarily through its Metal Coatings and Infrastructure Solutions segments.
- The company generates revenue by supplying corrosion protection, metal finishing, and custom electrical infrastructure products to industrial, utility, and OEM customers, leveraging both direct sales and distributor channels.
- It serves steel fabricators, manufacturers, power generation and distribution companies, industrial clients, and original equipment manufacturers in the United States and internationally.
AZZ is a leading provider of metal coating and electrical infrastructure solutions, operating at scale with a diversified industrial customer base. The company's integrated business model combines specialized engineering, manufacturing, and service capabilities, enabling it to address complex needs in corrosion protection and electrical systems.
What this transaction means for investors
Capital rotation tells you more than price action alone. When a fund opens a new position amid a near-50% run, it usually means the underlying cash-flow story is still doing the heavy lifting. That appears to be the case here.
AZZ’s latest guidance, released earlier this month, laid out a clearer earnings bridge than the market often gives credit for. Management is forecasting fiscal 2027 sales of $1.73 billion to $1.78 billion, adjusted EBITDA as high as $400 million, and adjusted EPS up to $7.00, supported by margin expansion and disciplined capital allocation. The Washington, Missouri, facility is expected to turn accretive this year, while debt reduction of up to $170 million and continued buybacks add a second lever to shareholder returns.
What makes this move more interesting is where it sits inside the portfolio. This is not a momentum-heavy fund. Its largest positions skew toward industrials and cash-generative cyclicals, suggesting AZZ is being viewed less as a trade and more as a durable infrastructure compounder.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Azz. The Motley Fool recommends Hexcel. The Motley Fool has a disclosure policy.
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