South Street Advisors Dumps $2.5 Million of its Stride Position Amid Stock's Halving

What happened

According to a SEC filing dated February 9, 2026, South Street Advisors LLC sold 27,651 shares of Stride (NYSE:LRN) during the fourth quarter. The estimated transaction value was $2.51 million based on the average share price across the quarter. The quarter-end value of the firm’s Stride position declined by $8.80 million, driven by both share sales and market price movements.

What else to know

After the sale, Stride comprised 0.51% of South Street Advisors' $712.19 million 13F reportable assets.

• Top holdings following the filing:
  • Nvidia: $63.67 million (8.94% of AUM)
  • Amphenol: $37.25 million (5.23% of AUM)
  • Alphabet: $38.82 million (5.45% of AUM)
  • Microsoft: $34.92 million (4.9% of AUM)
  • Apple: $33.95 million (4.77% of AUM)

As of February 27, 2026, Stride shares were trading at $84.38, down 38.32% over the past year and underperforming the S&P 500 by 44 percentage points.

Company overview

Company snapshot

• Stride delivers technology-based education services, including proprietary and third-party online curriculum, software systems, and educational support for K-12 and adult learners.
• The company generates revenue by providing virtual and blended public school solutions, individual online courses, supplemental educational products, and career-focused training programs for both students and employers.
• Primary customers include public and private schools, school districts, charter boards, consumers, employers, and government agencies in the United States and internationally.

Stride is a leading provider of online and blended education solutions, serving a broad spectrum of learners from kindergarten through adulthood. The company leverages proprietary technology platforms to deliver scalable, individualized instruction and career training across diverse subject areas. With a focus on both academic and workforce readiness, Stride differentiates itself through its integrated service offerings and ability to address evolving educational and talent development needs.

What this transaction means for investors

Despite recently dropping over 50% from its 52-week high, Stride has been an eight-bagger for investors over the last decade, more than doubling the S&P 500’s total returns. However, the online education company tried to implement an upgraded platform last summer, and its stock has yet to recover. Considering Stride enrollments at the time were roughly 257,000, these disruptions were a major issue, as management believes it may have missed between 10,000 and 15,000 enrollments.

With South Street’s outsize selling, it’s possible that they are in the process of cleaning their hands of the stock. However, it is worth noting that the firm trimmed back the vast majority of its holdings, also -- so this may have just been necessary selling for them. It will be interesting to see what South Street does in the upcoming quarter, after Stride kind of hit its stride (sorry) during its January earnings call.

Shares popped 30% the day it reported earnings after management explained that it was successfully distancing itself from the platform problems and that withdrawal rates so far in January had retreated to historical levels. Delivering sales, enrollment, and EPS growth of 8%, 8%, and 6%, respectively, Stride stabilized things much faster than I previously thought possible. Because of this impressive turnaround, Stride’s leadership in its niche, and growing dissatisfaction with the traditional K-12 school model among parents, I’ll happily keep adding to my Stride shares while it trades at just 10 times forward earnings.

Josh Kohn-Lindquist has positions in Alphabet, Nvidia, and Stride. The Motley Fool has positions in and recommends Alphabet, Amphenol, Apple, Microsoft, Nvidia, and Stride. The Motley Fool has a disclosure policy.