Brown Capital Sells $35 Million in Glaukos Stock After Sharp Sell-Off
Key Points
Baltimore-based Brown Capital Management sold 376,359 shares of Glaukos Corporation for an estimated $34.6 million in the third quarter.
The transaction value equaled approximately 1.4% of fund’s 13F assets under management at quarter-end.
Despite the sale, Brown still holds 762,760 shares of Glaukos valued at about $62.2 million.
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Baltimore-based Brown Capital Management reported a sale of 376,359 Glaukos Corporation shares for an estimated $34.6 million in the third quarter, according to an SEC filing.
What Happened
Brown Capital Management disclosed in an SEC filing on Tuesday that it reduced its holding in Glaukos Corporation (NYSE:GKOS) by 376,359 shares in the third quarter. The estimated value of the transaction was $34.6 million based on the average closing price during the quarter. At quarter-end, the firm held 762,760 shares worth $62.2 million.
What Else to Know
The sale lowered Glaukos Corporation’s weight in Brown Capital Management’s portfolio to 2.6% of 13F assets.
Top holdings after the filing:
- NASDAQ:CYBR: $197.3 million (8.1% of AUM)
- NASDAQ:CAMT: $121.2 million (5% of AUM)
- NYSE:VEEV: $108.4 million (4.5% of AUM)
- NASDAQ:DDOG: $101.4 million (4.2% of AUM)
- NYSE:GWRE: $95.2 million (3.9% of AUM)
As of Wednesday's market close, Glaukos shares were priced at $84.35, down approximately 34% over the past year and well underperforming the S&P 500, which is up nearly 15% over the past year.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $433 million |
| Net Income (TTM) | ($92.8 million) |
| Price (as of market close Wednesday) | $84.35 |
| Market capitalization | $4.8 billion |
Company Snapshot
Glaukos Corporation is a leading ophthalmic medical technology company specializing in innovative micro-scale devices and pharmaceutical solutions for glaucoma and related eye disorders. The company's strategy centers on expanding its product portfolio and leveraging proprietary technology platforms to address unmet clinical needs in ophthalmology. It generates revenue through the direct sale and distribution of proprietary micro-scale implantable devices and pharmaceutical therapies for ophthalmic conditions. Glaukos's competitive edge is driven by its focus on minimally invasive therapies and a robust pipeline targeting multiple ophthalmic indications.
Foolish Take
Brown Capital Management’s partial exit from Glaukos Corporation last quarter could represent a cautious recalibration after a volatile year for the ophthalmic-device maker. The Baltimore-based fund sold 376,359 shares, an estimated $34.6 million reduction, according to its latest SEC filing. But despite the sale, Glaukos remains a mid-sized position for Brown, accounting for 2.6% of reportable assets.
Shares have fallen 34% over the past year, with much of the decline following the company’s February 20 earnings report, which showed 28% year-over-year revenue growth to $105.5 million but disappointed investors with larger-than-expected losses and rising expenses. Management said it expects 2025 sales between $475 million and $485 million but acknowledged headwinds related to currency exchange and market entry.
Ultimately, the decision to remain invested in Glaukos despite the stock’s sell-off may represent some remaining conviction around the high-risk, high-reward opportunity—especially if the company's disruptive glaucoma implants and sustained-release pharmaceuticals gain wider adoption.
Glossary
13F assets: Securities reported by institutional investment managers in quarterly SEC Form 13F filings, representing their managed holdings.
Assets under management (AUM): The total market value of investments managed by a fund or investment firm on behalf of clients.
Quarterly average pricing: The average price of a security over a specific quarter, used to estimate transaction values.
Portfolio weight: The percentage of a portfolio's total value allocated to a specific investment or holding.
Fund downsizing: A reduction in the total assets or number of holdings managed by an investment fund.
Position: The amount of a particular security or asset held in a portfolio.
Ophthalmic: Relating to the eyes or the medical specialty of eye care.
Proprietary technology platforms: Unique, company-owned systems or methods used to develop and deliver products or services.
Pipeline products: New products or therapies in development but not yet commercially available.
Minimally invasive therapies: Medical treatments designed to reduce physical intrusion, often resulting in faster recovery and fewer complications.
Indications: Specific diseases or conditions for which a medical product or treatment is intended.
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 Datadog and Veeva Systems. The Motley Fool has a disclosure policy.
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