Kessler Investment Group Exits $8.4 Million Howmet Stake as Aerospace Stock Surges
Key Points
Kessler Investment Group sold 44,875 shares of Howmet Aerospace for an estimated $8.4 million.
The trade represented 3.6% of Kessler’s 13F reportable assets under management.
Kessler reported holding no HWM shares after the transaction. The position was previously 3.4% of the fund’s assets under management as of the prior quarter.
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On Thursday, Kessler Investment Group disclosed in a U.S. Securities and Exchange Commission filing for the fiscal third quarter ended September 30 that it sold its entire stake in Howmet Aerospace (NYSE:HWM), an estimated $8.4 million trade based on quarterly average pricing.
What Happened
Kessler Investment Group reported a full exit from its position in Howmet Aerospace (NYSE:HWM), selling all 44,875 shares during the third quarter, according to an SEC filing released on Thursday. The estimated value of the transaction, based on the quarter’s average share price, was approximately $8.4 million. Kessler held no shares of Howmet Aerospace as of September 30.
What Else to Know
Top holdings after the filing:
- NASDAQ:GOOGL: $15.7 million (6.8% of AUM)
- NASDAQ:CRWD: $13.5 million (5.8% of AUM)
- NYSE:DELL: $12.2 million (5.3% of AUM)
- NASDAQ:ROKU: $11.5 million (4.9% of AUM)
- NYSE:ANET: $11.4 million (4.9% of AUM)
As of Friday morning, Howmet Aerospace shares were priced at $188.93, up 85% over the past year and far outperforming the S&P 500's 17% gain in the same period.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $7.7 billion |
| Net income (TTM) | $1.4 billion |
| Dividend yield | 0.2% |
| Price (as of Friday morning) | $188.93 |
Company Snapshot
- Howmet Aerospace delivers advanced engineered solutions such as airfoils, seamless rolled rings, aerospace fastening systems, titanium ingots, and forged aluminum wheels.
- The company primarily generates revenue from manufacturing and selling specialized components and assemblies for aircraft engines, industrial gas turbines, and commercial vehicles.
- Its products serve a global customer base in the aerospace, defense, and commercial transportation industries.
Howmet Aerospace is a leading global supplier of high-performance engineered products for the aerospace and transportation sectors. With a diversified portfolio and a focus on mission-critical components, the company leverages advanced manufacturing and materials expertise to maintain strong industry positions.
Foolish Take
Kessler Investment Group’s $8.4 million exit from its Howmet Aerospace stake adds yet another high-performing name to the growing list of companies the Indiana-based firm has unloaded this quarter—alongside sales of Palantir, Shopify, and Robinhood. It’s a notable move, given that Howmet shares are hovering near all-time highs after climbing 85% over the past year, far outpacing the S&P 500’s 17% gain.
The aerospace-components maker has delivered record-setting results. In its second-quarter report, revenue reached $2.1 billion, up 9% year over year, while operating income margin expanded to 25.4%—a 420-basis-point improvement. Net income surged to $407 million, or $1.00 per share, and free cash flow hit $344 million, marking the company’s ninth straight quarter of positive cash flow. Management raised full-year guidance across all metrics and authorized an additional $100 million in share buybacks after the quarter’s end.
CEO John Plant cited sustained strength in commercial and defense aerospace demand, along with rising orders for industrial gas turbines tied to data-center growth. Yet for investors like Kessler, locking in gains at peak valuations may simply be prudent portfolio discipline—particularly when the firm’s largest remaining holdings, such as Alphabet, CrowdStrike, Dell, Roku, and Arista Networks, offer diversified exposure to growth.
Glossary
Exited: When an investor sells all of their holdings in a particular security or company.
Stake: The amount of ownership or shares held in a company by an investor or fund.
13F reportable assets under management (AUM): The total value of securities a fund manager must report quarterly to the U.S. Securities and Exchange Commission on Form 13F.
Position: The amount of a particular security or asset held in a portfolio.
Quarterly average pricing: The average price of a security over a specific three-month reporting period.
Outperforming: Achieving a higher return or growth rate than a benchmark, such as the S&P 500.
Dividend yield: Annual dividends paid by a company divided by its share price, shown as a percentage.
Mission-critical components: Products or parts essential to the core function or safety of an end product, such as an aircraft engine.
Forged aluminum wheels: Wheels made by shaping aluminum under high pressure, resulting in strong, lightweight components.
Seamless rolled rings: Circular metal components manufactured without welds, used in high-stress industrial and aerospace applications.
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 Alphabet, Arista Networks, CrowdStrike, and Roku. The Motley Fool recommends Howmet Aerospace. The Motley Fool has a disclosure policy.
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