$10 Million Exit From Lindsay Comes as Margins Hold at 12.6% Despite Revenue Pressure
Key Points
Pier Capital sold 71,799 shares of Lindsay in the fourth quarter; the estimated trade value was $10.09 million.
Post-trade, the fund held zero shares and no remaining position value in Lindsay.
The position was previously 1.6% of the fund's AUM as of the prior quarter.
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On February 3, Pier Capital reported in an SEC filing that it sold out of Lindsay (NYSE:LNN), liquidating 71,799 shares in a transaction estimated at $10.09 million.
What happened
According to a Securities and Exchange Commission (SEC) filing dated February 3, Pier Capital fully exited its position in Lindsay (NYSE:LNN) by selling 71,799 shares. The estimated transaction value was $10.09 million.
What else to know
The Lindsay stake represented approximately 1.58% of AUM in the previous quarter and is now zero
Top holdings at quarter-end:
- NYSE:MIR: $16.80 million (2.7% of AUM)
- NYSE:CWAN: $16.45 million (2.6% of AUM)
- NYSE:HXL: $11.99 million (1.9% of AUM)
- NASDAQ:ALHC: $10.80 million (1.7% of AUM)
- NASDAQ:FULT: $10.50 million (1.7% of AUM)
As of February 2, Lindsay shares were priced at $127.27, down 1.86% over the past year and underperforming the S&P 500’s roughly 14% gain in the same period.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $665.90 million |
| Net income (TTM) | $73.41 million |
| Dividend yield | 1.1% |
| Price (as of February 2) | $127.27 |
Company snapshot
- Lindsay offers irrigation systems, controls, and infrastructure solutions for water management and road safety, including the Zimmatic, Perrot, Greenfield, and GrowSmart brands.
- The company generates revenue by manufacturing and selling agricultural irrigation equipment and infrastructure products, as well as providing related technology and services.
- It serves agricultural producers, departments of transportation, municipal agencies, roadway contractors, and distributors in the United States and internationally.
Lindsay is a leading provider of water management and road infrastructure solutions, operating at scale with a diversified product portfolio and global reach. The company’s strategy focuses on leveraging technology and engineering expertise to address critical needs in agricultural productivity and highway safety. Its competitive advantage is underpinned by established brands, a strong presence in both irrigation and infrastructure markets, and a commitment to innovation.
What this transaction means for investors
What matters here is less the exit itself and more what it says about patience in a cyclical business that is proving resilient, but not immune. Lindsay is navigating a difficult agricultural backdrop marked by soft farmer sentiment, lower commodity prices, and delayed capital spending, yet its most recent quarter showed how disciplined operators can still defend profitability.
For the fiscal first quarter ended Nov. 30, Lindsay reported revenue of $155.8 million, down 6% year over year, but held operating margin steady at 12.6%. Irrigation revenue declined 9%, driven by weaker North American demand and slower project timing in Brazil and the Middle East, while infrastructure revenue rose 17% on stronger road safety sales. Plus, the infrastructure segment posted a 20.1% operating margin, helping offset irrigation softness.
The company also leaned into capital returns, repurchasing roughly $30 million of stock during the quarter and authorizing a new $150 million buyback program. Still, backlog fell sharply to $119.2 million from $168.2 million a year earlier, reflecting deliveries tied to prior large irrigation projects. Ultimately, this move highlights the tension in Lindsay’s story. Strong margins, a clean balance sheet, and infrastructure growth argue for durability, but near-term irrigation demand remains tied to forces management cannot control. Walking away now may reflect timing rather than a broken business.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Lindsay. The Motley Fool recommends Hexcel. The Motley Fool has a disclosure policy.
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