Brady Stock Is up 13% This Past Year, but Here's Why One Fund Cashed Out Completely

On Tuesday, Louisiana-based Paradiem disclosed in a U.S. Securities and Exchange Commission filing that it sold out its Brady Corporation (NYSE:BRC) stake, an estimated $12.98 million transaction based on the last disclosed value.

What Happened

According to a filing with the U.S. Securities and Exchange Commission released Tuesday, Paradiem sold its entire holding of 166,374 Brady Corporation (NYSE:BRC) shares. The estimated value of the transaction was approximately $12.98 million, based on the average closing price for the quarter.

What Else to Know

Top holdings after the filing:

• NYSEMKT:DIVB: $51.98 million (12.44% of AUM)
• NASDAQ:LRCX: $19.94 million (4.77% of AUM)
• NYSE:CAT: $17.77 million (4.25% of AUM)
• NYSE:BKH: $16.29 million (3.90% of AUM)
• NYSE:VLO: $15.92 million (3.81% of AUM)

As of Monday, BRC shares were priced at $80.80; one-year price change was 12.58%, underperforming the S&P 500 by 6.16 percentage points

Company Overview

Company Snapshot

• Brady Corporation provides identification solutions and workplace safety products, including safety signs, labeling systems, RFID/barcode solutions, and compliance software.
• The company generates revenue by manufacturing and distributing specialized products for facility, product, and personnel identification, as well as workplace safety and compliance, through direct sales, distributors, catalogs, and digital channels.
• Primary customers span industrial and electronic manufacturing, healthcare, chemical, oil and gas, automotive, aerospace, government, and education sectors worldwide.

Brady Corporation is a global provider of identification and safety solutions, serving a diverse industrial and commercial client base. The company leverages its extensive product portfolio and technology-driven offerings to address complex compliance and safety requirements across industries. Its established market presence, broad distribution network, and focus on innovation contribute to its competitive positioning in the identification and workplace safety sector.

What this transaction means for investors

Exiting a company that has delivered double-digit returns over the past year seems like it could be a deliberate capital reallocation decision rather than a loss of confidence in the business. For long-term investors, that distinction matters.

Brady’s fundamentals remain steady. In its most recent quarter, the company grew sales 7.5% year over year to $405.3 million, boosted by organic growth and acquisitions. Adjusted diluted EPS rose 8% to $1.21, while operating cash flow jumped 42.5% to $33.4 million. Management also raised the low end of its full-year adjusted EPS guidance to a range of $4.90 to $5.15, underscoring continued execution and margin discipline. The balance sheet, meanwhile, remains conservative, with the company sitting in a net cash position of roughly $67 million at quarter end.

Finally, the broader portfolio tilts toward names like Lam Research, Caterpillar, and Valero, alongside a sizable position in a diversified value ETF. That mix suggests a shift toward higher-beta cyclicals and large-cap industrial exposure, rather than a rejection of Brady’s steady, mid-cap profile.

Glossary

13F reportable AUM: Assets under management that must be disclosed by institutional investment managers in quarterly SEC Form 13F filings.
Quarter-end position: The value or number of shares held in an investment at the end of a financial quarter.
Stake: The ownership interest or shareholding a fund or investor has in a particular company.
Exited: When an investor or fund sells its entire position in a particular investment, holding zero shares afterward.
Transaction value: The total dollar amount received or paid in a specific trade or sale.
Average closing price: The mean of a stock’s daily closing prices over a specified period, often used to estimate transaction values.
Distribution network: The system of channels a company uses to deliver products to customers, such as direct sales or distributors.
Compliance software: Technology solutions designed to help organizations meet regulatory and safety requirements.
RFID: Radio Frequency Identification, a technology using electromagnetic fields to identify and track tags attached to objects.
TTM: The 12-month period ending with the most recent quarterly report.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Brady and Lam Research. The Motley Fool has a disclosure policy.