Hedge Fund Divisar Dumped nLIGHT Shares Worth $9.6 Million. Is the Stock a Buy or Sell?
Key Points
Divisar sold 287,005 shares of nLIGHT, estimated at $9.59 million based on quarterly average pricing.
Quarter-end position value decreased by $6.23 million, reflecting both trading and market movement.
The transaction represented 2.69% of reported 13F assets under management.
Post-sale holding: 288,438 shares valued at $10.82 million.
The LASR position now accounts for 3.04% of AUM, placing it outside the fund’s top five holdings.
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What happened
According to a SEC filing dated February 17, 2026, Divisar Capital Management LLC reduced its position in nLIGHT (NASDAQ:LASR) by 287,005 shares during the fourth quarter of 2025.
The estimated value of the shares sold was $9.59 million, based on the quarter’s average price. At quarter-end, the value of the remaining stake decreased by $6.23 million, a figure reflecting both executed sales and price changes.
What else to know
Divisar Capital’s LASR position now accounts for 3.04% of reportable 13F assets, down from 5.73% the prior quarter.
Top holdings after the filing:
- NYSE: ONTO: $33.53 million (9.4% of AUM)
- NASDAQ: LITE: $32.08 million (9.0% of AUM)
- NASDAQ: ADTN: $25.95 million (7.3% of AUM)
- NYSE: PII: $25.59 million (7.2% of AUM)
- NASDAQ: UCTT: $24.05 million (6.8% of AUM)
As of February 17, 2026, shares were priced at $50.89, up 392.2% over the past year, outperforming the S&P 500 by 397.5 percentage points.
Company/ETF overview
| Metric | Value |
|---|---|
| Market capitalization | $3.27 billion |
| Revenue (TTM) | $261.33 million |
| Net income (TTM) | ($23.47 million) |
Company/ETF snapshot
- nLIGHT designs and manufactures semiconductor and fiber lasers, fiber amplifiers, and beam control systems for industrial, microfabrication, and aerospace and defense applications.
- It generates revenue through direct product sales and distribution partnerships, with operations in the Laser Products and Advanced Development segments.
- The company serves customers in the United States, China, South Korea, Europe, and South America, targeting manufacturers and defense contractors.
nLIGHT is a technology company specializing in high-performance laser solutions, with a focus on industrial and defense markets. The company leverages advanced semiconductor and fiber laser technologies to deliver precision and reliability for demanding applications.
Its diversified customer base and global sales network support its competitive position in the semiconductor and directed energy sectors.
What this transaction means for investors
Hedge fund Divisar Capital Management’s sale of over 287,000 shares in nLIGHT during the fourth quarter could have been driven by the rising stock price. In Q4, shares were well above the 52-week low of $6.20 reached last April.
But after the sale, Divisar retained 288,438 nLIGHT shares, suggesting the hedge fund believed the stock could deliver further gains. As it turns out, nLIGHT continued to soar in 2026, hitting a 52-week high of $69.52 on March 4.
The stock price increase is reflective of nLIGHT’s strong business performance. In 2025, its revenue was a record $261.3 million, representing an increase of 32% over the prior year.
nLIGHT isn’t profitable, ending 2025 with a net loss of $23.5 million, but that was a significant drop from the previous year’s loss of $60.8 million. This indicates its bottom line is improving.
Although the company is doing well, its elevated share price has led to a price-to-sales ratio exceeding 11, which is around a multi-year high. This suggests now is a good time to sell, but not to buy.
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Robert Izquierdo has positions in Polaris. The Motley Fool has positions in and recommends Lumentum. The Motley Fool has a disclosure policy.
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