Why a Major Investor Cut IES Holdings Exposure by $12 Million Amid a Big Stock Rally | The Motley Fool

On November 13, New York-based JB Capital Partners disclosed in a U.S. Securities and Exchange Commission filing that it sold 41,004 shares of IES Holdings ( IESC 0.20%), reducing its position by $12.06 million. What Happened According to a filing with the SEC dated November 13, JB Capital Partners LP sold 41,004 shares of IES Holdings during the third quarter. The transaction reduced its stake to just 841 shares with a quarter-end value of $334,424. What Else to Know The transaction left IES Holdings at just 0.06% of JB Capital Partners LP’s reportable AUM after the quarter. The position previously accounted for 2.3% of the fund’s assets under management as of June 30. Top holdings after the filing: NASDAQ:RDNT: $108.53 million (18.6% of AUM) NYSE:RYI: $48.58 million (8.3% of AUM) NYSE:TPC: $47.20 million (8.1% of AUM) NYSE:CNR: $38.97 million (6.7% of AUM) NYSE:OPY: $37.25 million (6.4% of AUM) As of Friday, shares of IES Holdings were priced at $404.40, up a staggering 86% over the past year and well outperforming the S&P 500, which is instead up about 15%. Company Overview Metric Value Price (as of Friday) $404.40 Market capitalization $8.05 billion Revenue (TTM) $3.37 billion Net income (TTM) $305.98 million Company Snapshot IES Holdings provides integrated electrical and technology systems, including design, installation, and maintenance for commercial, industrial, communications, infrastructure, and residential projects. The company operates a diversified business model with revenue streams from electrical contracting, network infrastructure, power distribution products, and residential electrical and solar installations. It serves a broad customer base spanning office buildings, manufacturing and chemical facilities, data centers, healthcare, educational institutions, municipal infrastructure, and residential developers. IES Holdings is a diversified engineering and construction company with a national footprint and a focus on delivering specialized electrical and technology solutions. Its multi-segment strategy enables exposure to multiple end markets, including commercial, industrial, communications, infrastructure, and residential sectors. The company leverages its expertise in integrated systems and custom-engineered products to maintain a competitive edge in complex, large-scale projects. Foolish Take IES Holdings is coming off one of the strongest operating periods in its history, with fiscal 2025 revenue up 17% to $3.37 billion and record earnings , including net income that jumped 40% year over year. Meanwhile, the company’s backlog climbed to roughly $2.37 billion, giving the company unusually clear visibility into future demand, particularly from data centers and infrastructure projects. Against that backdrop, trimming makes sense. IES shares are up roughly 86% over the past year and have significantly outpaced the broader market. For a concentrated portfolio, locking in gains after a parabolic run can be less about conviction fading and more about risk control. For long-term investors, the signal is mixed but not bearish. IES has momentum, strong margins, zero net debt, and growing exposure to high-demand end markets. So ultimately, this looks less like smart money fleeing and more like disciplined money resetting exposure after a stock did exactly what it was supposed to do. Glossary Assets Under Management (AUM): The total market value...

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