Investment Advisor Trims Small-Cap Tech Stock Position by $2.5 Million, According to Recent SEC Filing
Key Points
Fund sold 70,437 shares of Photronics in Q1 2026; estimated trade size was $2.55 million based on quarterly average pricing.
Quarter-end value of the PLAB position decreased by $1.94 million, reflecting both share sales and price movement over the period.
Trade represented a 1.1% change in the fund’s 13F reportable assets under management (AUM).
Post-trade, the fund held 37,567 shares valued at $1.52 million as of March 31, 2026.
The position now accounts for 0.66% of AUM, placing it outside the fund’s top five holdings.
- 10 stocks we like better than Photronics ›
Meros Investment Management, LP disclosed on May 14, 2026, that it sold 70,437 shares of Photronics (NASDAQ:PLAB), an estimated $2.55 million trade based on the quarterly average price.
What happened
According to a Securities and Exchange Commission (SEC) filing dated May 14, 2026, Meros Investment Management, LP reduced its holdings in Photronics by 70,437 shares during the first quarter of 2026. The estimated value of the shares sold was $2.55 million, based on the average quarterly closing price. The net value of the position declined by $1.94 million over the period, reflecting both trading activity and stock price changes.
What else to know
Meros trimmed its PLAB stake, which now represents 0.66% of 13F AUM after the filing.
Top holdings after the filing:
- NYSE: DCO: $15.64 million (6.8% of AUM)
- NYSE: WTTR: $13.98 million (6.1% of AUM)
- NYSE: NVRI: $12.28 million (5.3% of AUM)
- NYSE: THR: $12.17 million (5.3% of AUM)
- NASDAQ: MGNI: $11.79 million (5.1% of AUM)
As of May 13, 2026, Photronics shares were priced at $51.86, up 147.8% over the past year, outperforming the S&P 500 by 121.32 percentage points.
Company Overview
| Metric | Value |
|---|---|
| Price (as of market close 2026-05-13) | $51.86 |
| Market Capitalization | $3.05 billion |
| Revenue (TTM) | $862.22 million |
| Net Income (TTM) | $192.15 million |
Company Snapshot
- Manufactures and sells photomask products used in the production of integrated circuits and flat panel displays, serving the global semiconductor and electronics industries.
- Generates revenue by supplying critical photomasks that enable the transfer of circuit patterns onto semiconductor wafers and display substrates, supporting advanced electronics manufacturing.
- Primary customers include semiconductor manufacturers, foundries, flat panel display producers, and high-performance electronics companies worldwide.
Photronics is a leading supplier of photomasks, essential components in semiconductor and display fabrication. With a global footprint and a focus on technology-driven manufacturing, the company supports major electronics and chip producers across multiple regions.
What this transaction means for investors
Meros Investment Management, a Texas-based investment advisor, recently disclosed the sale of approximately 70,000 shares of Photronics stock, valued at approximately $2.5 million, during the first quarter (the three months ended March 31, 2026). Here are some key takeaways for investors.
First, Photronics has performed very well recently. Over the last nine months alone, shares have skyrocketed by about 131%. That’s far better than the S&P 500, which is up less than 17% over the same period.
The company has benefited from tailwinds generated by the rapid growth of the artificial intelligence (AI) sector, as Photronics supplies critical parts necessary for the semiconductor fabrication process.
Yet, despite the strong cyclical tailwinds, some investors may find the stock’s valuation concerning. Shares now trade at a price-to-sales (P/S) ratio of 3.5x. This current level is the highest dating back about 25 years. Indeed, the stock’s average P/S ratio is around 1.5x, or less than half of its current ratio.
In summary, Photronics has delivered massive gains recently, with the stock more than doubling in price in less than a year. However, some investors will find its valuation too high for comfort.
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Jake Lerch has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Ducommun and Thermon Group. The Motley Fool recommends Magnite. The Motley Fool has a disclosure policy.
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