This Small-Cap Fund Just Dumped $7 Million in ADMA Stock — Here’s Why
Key Points
California-based Palisades Investment Partners sold 398,647 shares of ADMA Biologics for an estimated $7.3 million in the third quarter.
The transaction marked a full exit from ADMA, with Palisades reporting no ownership as of September 30.
The position previously accounted for 3.2% of Palisades’ AUM.
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On Thursday, California-based Palisades Investment Partners disclosed a complete exit from ADMA Biologics (NASDAQ:ADMA), selling 398,647 shares for an estimated $7.3 million.
What Happened
According to a filing with the Securities and Exchange Commission released Thursday, Palisades fully liquidated its position in ADMA Biologics (NASDAQ:ADMA) in the third quarter. The fund sold all 398,647 shares it prevoiusly, with the estimated trade size calculated at $7.3 million based on the average price for the quarter. The fund reported holding no shares of ADMA Biologics at quarter-end.
What Else to Know
Top holdings after the filing:
- NASDAQ:STRL: $32.5 million (12.8% of AUM)
- NYSE:SPXC: $21 million (8.2% of AUM)
- NASDAQ:MMYT: $11 million (4.3% of AUM)
- NYSEMKT:IWM: $9.8 million (3.8% of AUM)
- NASDAQ:ITRI: $9.2 million (3.6% of AUM)
As of Friday's market close, shares of Adma Biologics were priced at $15.48, representing a one-year decline of 5% and far underperforming the S&P 500's 19% gain over the same period.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $474.2 million |
| Net income (TTM) | $208.9 million |
| Price (as of market close Friday) | $15.48 |
| One-year price change | (5%) |
Company Snapshot
- ADMA develops, manufactures, and markets plasma-derived biologics, including BIVIGAM, ASCENIV, and Nabi-HB, primarily for immune deficiencies and infectious diseases.
- The company generates revenue through the sale of specialty biologics and plasma products to independent distributors, specialty pharmacies, and healthcare providers.
- It targets patients with primary immunodeficiency and those at risk of hepatitis B, serving hospitals, clinics, and specialty care providers in the United States and internationally.
ADMA Biologics is a biopharmaceutical company focused on plasma-derived therapeutics for immune deficiencies and infectious diseases.
Foolish Take
Palisades Investment Partners’ full exit from ADMA Biologics this quarter underscores a disciplined adherence to its small-cap momentum strategy—selling when financial or operational momentum appears to stall. The California-based manager sold 398,647 shares worth roughly $7.3 million, exiting completely even as ADMA posted another quarter of revenue and earnings growth. In the same period, Palisades added Nasdaq-listed Root, an insurance-tech company focused on data-driven auto and renters policies—again consistent with its approach of rotating capital toward small caps showing improving earnings dynamics.
ADMA’s latest earnings reinforced solid fundamentals: 14% year-over-year revenue growth to $122 million and 7% higher GAAP net income. Yet with shares down about 5% over the past year, the fund’s exit suggests waning conviction that this growth will translate into further stock appreciation—at least in the near term.
For long-term investors, Palisades’ trade highlights the core of its philosophy: buy companies with accelerating momentum and divest when that momentum cools. While ADMA’s fundamentals remain sound, momentum-driven strategies often move on well before the underlying story is finished.
Glossary
Liquidated: Sold off an entire investment position, reducing the holding to zero.
Assets under management (AUM): The total market value of investments managed by a fund or investment firm.
Stake: The amount or percentage of ownership an investor holds in a company.
Filing: An official document submitted to regulators, often disclosing financial or ownership information.
Biologics: Medicines derived from living organisms, often used to treat complex diseases.
Plasma-derived therapeutics: Treatments created from blood plasma, used for immune deficiencies and certain diseases.
Specialty pharmacies: Pharmacies focused on dispensing medications for complex or rare conditions.
Primary immunodeficiency: Disorders where part of the body's immune system is missing or does not function properly.
Distributors: Companies or individuals that buy products from manufacturers and sell them to retailers or end users.
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 positions in and recommends Adma Biologics, MakeMyTrip, and Sterling Infrastructure. The Motley Fool has a disclosure policy.
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