Catawba River Capital has reduced its stake in Cadre Holdings (CDRE), selling 199,018 shares valued at approximately $7.95 million in Q1 2026, according to an SEC filing. This sale decreased Catawba’s holdings in Cadre from 8.3% to 4.03% of its reportable assets under management, while the remaining stake is now valued at $8.37 million. Cadre’s shares have struggled, down 17.3% year-over-year and significantly underperforming the S&P 500.
This divestment signals a potential shift in sentiment regarding defense and law enforcement spending growth, despite Cadre’s recent record adjusted EBITDA and sales growth. The company, a key supplier of safety equipment, continues to face challenges in meeting investor expectations, particularly after reporting softer-than-anticipated revenue and earnings.
For market professionals, the takeaway is clear: while Cadre Holdings maintains a strong market position, the recent stake reduction by Catawba River Capital may indicate cautious outlooks on future growth, making it essential to monitor both the company’s performance and broader sector trends.
Source: fool.com