This Investor Sold $1.9 Million in AMSC Stock Ahead of 35% Post-Earnings Crash
Key Points
Massachusetts-based Essex Investment Management sold 100,461 shares of American Superconductor Corporation for approximately $1.9 million in the third quarter.
The transaction value equaled about 0.8% of Essex's reportable 13F assets under management at quarter-end.
Despite the sale, Essex still holds 245,581 shares of AMSC valued at $14.6 million.
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On Thursday, Massachusetts-based Essex Investment Management disclosed in an SEC filing that it sold 100,461 shares of American Superconductor Corporation, reducing its position by approximately $1.9 million in the third quarter.
What Happened
According to a U.S. Securities and Exchange Commission (SEC) filing released Thursday, Essex Investment Management trimmed its stake in American Superconductor Corporation (NASDAQ:AMSC) by 100,461 shares in the third quarter. The transaction reduced the fund’s reported position value by approximately $1.9 million, leaving it with 245,581 shares worth $14.6 million.
What Else to Know
Despite the reduction, American Superconductor Corporation still represents 2.2% of Essex's 13F assets under management.
Top holdings after the filing:
- NASDAQ:KTOS: $22.3 million (3.4% of AUM)
- NASDAQ:STRL: $15.5 million (2.4% of AUM)
- NASDAQ:AMSC: $14.6 million (2.2% of AUM)
- NASDAQ:TSEM: $14.2 million (2.2% of AUM)
- NASDAQ:INSM: $12.5 million (1.9% of AUM)
As of Friday's market close, AMSC shares were priced at $38.86, up about 6% over the past year, compared to a 12% gain for the S&P 500.
Company Overview
| Metric | Value |
|---|---|
| Price (as of market close Friday) | $38.86 |
| Revenue (TTM) | $254.9 million |
| Net Income (TTM) | $15.3 million |
| Market cap | $1.8 billion |
Company Snapshot
American Superconductor Corporation is a provider of advanced power grid and wind energy solutions, with a business model focused on technology-driven products and engineering services. The company leverages its expertise in grid resiliency and wind turbine systems to serve a global customer base, supporting both traditional and renewable energy sectors.
With a diversified product portfolio and a presence in critical infrastructure markets, American Superconductor aims to deliver reliable, scalable solutions that address the evolving needs of the energy industry. It serves electric utilities, renewable energy developers, industrial facilities, and wind turbine manufacturers worldwide.
Foolish Take
Essex Investment Management’s trim of American Superconductor ahead of its post-earnings stock crash proved timely. AMSC shares plunged 35% last week following revenue that fell short of Wall Street expectations—all while net income fell to $4.75 million from $4.9 million one year prior. Investors also appeared to focus on narrower margins and weaker guidance. The sale leaves Essex with 245,581 shares, valued at $14.6 million at quarter-end. But after the tumble, the stake is worth only about $9.5 million.
For Essex—whose growth strategy emphasizes companies at “inflection points”—the sale likely reflects disciplined profit-taking after AMSC’s multi-year rally. For long-term investors, the fundamentals could remain compelling: The company’s grid resiliency and naval defense businesses are expanding, and it ended the quarter with $219 million in cash. Still, execution risk and volatility may remain high as investor sentiment recalibrates post-selloff.
Glossary
13F assets under management (AUM): The total value of securities reported by institutional investment managers in quarterly SEC Form 13F filings.
Alpha: A measure of an investment's performance relative to a benchmark, indicating value added or subtracted by active management.
Stake: The ownership interest or position held in a company, typically measured by the number of shares owned.
Trimmed its stake: Reduced the number of shares or investment held in a particular company.
Position: The amount of a particular security or asset held in a portfolio.
Post-trade stake: The number of shares or value of a holding remaining after a transaction is completed.
Grid interconnection systems: Technologies that enable power sources to connect and operate with the main electrical grid.
D-VAR voltage control: A system that dynamically manages voltage levels on the power grid to improve stability and reliability.
Reactive compensation products: Equipment used to manage and balance the flow of reactive power in electrical grids.
Licensing: Granting permission to use proprietary technology or intellectual property, usually in exchange for fees or royalties.
Critical infrastructure: Essential systems and assets, such as power grids, necessary for the functioning of a society and economy.
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 Sterling Infrastructure. The Motley Fool has a disclosure policy.
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