What to Know About This Fund's $61.5 Million Exit From Ecovyst Amid a 75% Stock Rally

On May 15, 2026, Mangrove Partners IM disclosed in an SEC filing that it sold out its entire position in Ecovyst (NYSE:ECVT), exiting 5,447,873 shares in an estimated $61.53 million trade based on quarterly average pricing.

What happened

According to its SEC filing dated May 15, 2026, Mangrove Partners IM fully liquidated its holding in Ecovyst (NYSE:ECVT), selling 5,447,873 shares. The estimated transaction value was $61.53 million, calculated using the average closing price for the first quarter. The quarter-end value of the stake declined by $53.01 million, a figure that includes both share sales and price movement.

What else to know

• Top five holdings after the filing:
  • NASDAQ: INDV: $83.59 million (6.8% of AUM)
  • NYSE: ATMU: $74.67 million (6.1% of AUM)
  • NYSEMKT: ETH: $70.56 million (5.7% of AUM)
  • NYSE: REX: $46.26 million (3.8% of AUM)
  • NYSE: PCG: $42.41 million (3.4% of AUM)
• As of Friday, ECVT shares were priced at $13.19, up about 75% over the past year and well outperforming the S&P 500, which is instead up about 28%.

Company overview

Company snapshot

• Ecovyst offers specialty catalysts, sulfuric acid recycling, and emission control solutions for refineries, chemical producers, and industrial customers.
• The firm generates revenue through the sale of catalysts and provision of sulfuric acid services, with operations structured into Ecoservices and Catalyst Technologies segments.
• It serves global refining, chemical, plastics, and industrial sectors, with a customer base spanning the United States, Europe, and international markets.

Ecovyst is a specialty chemicals company with a global footprint, providing advanced catalyst technologies and sulfuric acid services to industrial and refining clients. The company leverages its expertise in catalyst development and process solutions to support the production of plastics, emission controls, and sustainable industrial processes. With a focus on innovation and operational scale, Ecovyst positions itself as a critical supplier to high-value, process-driven industries.

What this transaction means for investors

Mangrove Partners exited during a year in which Ecovyst stock has dramatically outperformed the broader market, yet the company's latest results suggest the underlying fundamentals remain strong.

Ecovyst entered 2026 with significant momentum. First-quarter sales jumped 50% year over year to $215 million, while adjusted EBITDA surged 87% to $39.8 million. Net income from continuing operations swung to a $5.7 million profit from an $8.1 million loss a year earlier, helped by stronger sulfuric acid pricing, higher volumes, and contributions from the Waggaman assets acquired last year.

Management was confident enough to raise its 2026 outlook. The company now expects revenue of $890 million to $970 million and adjusted EBITDA of $180 million to $195 million, citing healthy refinery utilization, favorable alkylate economics, and growing demand for virgin sulfuric acid. CEO Kurt Bitting also emphasized that the divestiture of the Advanced Materials & Catalysts business has strengthened the balance sheet and created flexibility for future growth investments.

For long-term investors, the key question is whether sulfur markets remain favorable. With net leverage at 1.2 times adjusted EBITDA, $162.6 million in cash, and ongoing share repurchases, Ecovyst appears better positioned now than it was a year ago. The stock's big move may explain the fund's exit, but the company's outlook suggests the growth story itself is still intact.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.