Quantedge Capital has fully divested its position in DNOW, selling 351,310 shares valued at $5.36 million, according to an SEC filing dated February 17, 2026. This stake represented 2.9% of Quantedge’s assets under management (AUM) before the sale, which coincides with DNOW’s ongoing struggles in a challenging market environment.
The sale comes as DNOW’s stock has underperformed significantly, down about 27% over the past year, while the S&P 500 has risen approximately 15%. Despite generating $2.8 billion in revenue and achieving record adjusted EBITDA, DNOW reported a net loss of $89 million, primarily due to integration issues following its acquisition of MRC Global. This mixed performance and execution risks appear to have influenced Quantedge’s decision to exit, especially as the fund’s other holdings are more stable.
For investors, Quantedge’s timely exit from DNOW highlights the increasing caution around high-risk stocks in volatile sectors, particularly when faced with operational challenges.
Source: fool.com