Profit Investment Ditches FirstCash Shares Worth $2.6 Million in Portfolio Shake-up

Profit Investment Management, LLC disclosed in a January 8, 2026, SEC filing that it fully exited FirstCash Holdings, Inc. (NASDAQ:FCFS), selling 16,257 shares for an estimated $2.58 million based on quarterly average pricing.

What Happened

According to a recent SEC filing, Profit Investment Management, LLC sold its entire holding of 16,257 shares in FirstCash Holdings, Inc. during the most recent quarter. The estimated transaction value was $2.58 million, calculated using the quarterly average share price. The quarter-end value of the position decreased by $2.58 million, reflecting both the sale and any stock price movement during the period.

What Else to Know

This was a complete exit from FirstCash, which now comprises 0% of the fund’s 13F assets under management.

Top holdings after the filing:

• NASDAQ:GOOGL: $1,721,500 (7.0% of AUM)
• NASDAQ:AAPL: $1,363,106 (5.5% of AUM)
• NASDAQ:NVDA: $1,349,514 (5.5% of AUM)
• NYSE:GS: $1,324,653 (5.4% of AUM)
• NYSE:AXP: $1,307,089 (5.3% of AUM)

As of January 7, 2026, FirstCash shares were priced at $165.66, up 57.16% over the past year; shares have outperformed the S&P 500 by 45.26 percentage points.

Fund-level context: Profit Investment Management, LLC reduced AUM by 69% quarter over quarter, signaling broad portfolio downsizing beyond this single exit.

Company Overview

Company Snapshot

• Offers pawn loans secured by personal property and retails merchandise from collateral forfeitures and direct purchases, including jewelry, electronics, tools, and precious metals.
• Generates revenue through interest on pawn loans, merchandise sales, and commodity sales from scrap jewelry and precious metals.
• Serves cash- and credit-constrained consumers in the United States and Latin America, with a broad retail footprint across multiple countries.

FirstCash Holdings, Inc. operates a large network of retail pawn stores across the United States and Latin America, providing short-term secured loans and retailing forfeited collateral. As of December 31, 2021, the company operated 2,825 stores across the United States and Latin America, supporting a diversified revenue base. Its focus on serving underbanked populations and leveraging retail operations for both lending and merchandise sales provides a defensible business model in the non-bank credit sector.

What This Transaction Means For Investors

Sometimes the intent behind an institutional transaction can be difficult to discern. That's certainly the case with this sale by Profit Investment, a Maryland-based investment manager. Here are the key takeaways for investors.

First off, Profit Investment completely closed out its position in FirstCash Holdings stock, reducing its overall holdings from $2.6 million to zero. However, that wasn't the only move that the investment manager made during the quarter. All told, Profit Investment sold around 69% of its total stock holdings, reducing its overall stock position from $79.5 million to $24.7 million.

In light of this, Profit's decision to sell its entire stake in FirstCash could be seen as part of a broader, portfolio-wide decision by the investment managers to reduce risk and raise cash. Moreover, FirstCash's recent stock performance also lends some weight to the theory, as FirstCash stock has advanced by 57% over the last year, easily besting the S&P 500's one-year return of 12%.

At any rate, investors would be wise to consider FirstCash stock, even after this recent sale. The company operates a network of nearly 3,000 pawn stores across the U.S. and Latin America. Over the last five years, FirstCash's stock has generated a total return of 160%, equating to a compound annual growth rate (CAGR) of 21%. Indeed, the company's longstanding history of delivering steady growth combined with consistent profitability make it a name that investors should know.

Glossary

13F reportable assets: Assets that investment managers must disclose quarterly to the SEC, typically including U.S. exchange-traded securities.
AUM (Assets Under Management): The total market value of investments managed by a fund or investment firm.
Quarterly average pricing: The average share price calculated over a specific quarter, often used for estimating transaction values.
Trailing twelve months (TTM): TTM – The 12-month period ending with the most recent quarterly report.
Dividend yield: Annual dividends per share divided by the share price, expressed as a percentage.
Collateral forfeitures: Assets pledged for a loan that are taken by the lender if the borrower defaults.
Commodity sales: Revenue from selling raw materials, such as precious metals, often sourced from pawned or forfeited items.
Underbanked populations: Individuals or groups with limited access to traditional banking services.
Portfolio downsizing: Reducing the number or size of investments held in a fund or portfolio.
Non-bank credit sector: Financial services providing loans or credit outside traditional banks, often targeting underserved consumers.
Secured loans: Loans backed by collateral, which the lender can claim if the borrower fails to repay.

American Express is an advertising partner of Motley Fool Money. Jake Lerch has positions in Alphabet and Nvidia. The Motley Fool has positions in and recommends Alphabet, Apple, Goldman Sachs Group, and Nvidia. The Motley Fool has a disclosure policy.