Ardent Health Shares Sink 43% as Investor Dumps $7.7 Million Stake Amid Earnings Shock
Key Points
Pier Capital sold 580,620 shares of Ardent Health worth about $7.69 million.
The move represents a 1.23% shift in Pier Capital’s reportable 13F assets under management.
The move marked a full exit; Ardent Health previously accounted for 1.2% of the fund’s AUM as of the prior quarter.
Pier Capital sold out its entire position in Ardent Health (NYSE:ARDT) during the fourth quarter, according to a February 3 SEC filing, with the estimated trade valued at approximately $7.69 million.
What happened
According to a Securities and Exchange Commission (SEC) filing dated February 3, Pier Capital sold all of its 580,620 shares of Ardent Health during the fourth quarter, changing the position’s quarter-end value by $7.69 million, which includes both the trading activity and any stock price movement during the period.
What else to know
Top holdings after the filing:
- 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, shares of Ardent Health were priced at $8.59, down a staggering 43.2% over the past year and well underperforming the S&P 500’s roughly 14% gain in the same period.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $6.33 billion |
| Net Income (TTM) | $205.06 million |
| Price (as of 2/2/26) | $8.59 |
| One-Year Price Change | (43.19%) |
Company snapshot
- Ardent Health operates a network of acute care hospitals, rehabilitation centers, and surgical hospitals, delivering comprehensive healthcare services across the United States.
- The company generates revenue primarily through patient services, including inpatient and outpatient care, surgical procedures, and specialty medical treatments.
- It serves a broad patient base, including individuals requiring acute medical attention, rehabilitation, and surgical interventions, with a focus on regional healthcare markets.
Ardent Health, Inc. is a large-scale healthcare provider managing a diversified portfolio of hospitals and clinics, with a presence in multiple U.S. regions.
What this transaction means for investors
For long-term investors, the significance here isn’t the exit itself but the timing relative to a quarter that reset expectations. Ardent Health’s third-quarter report showed solid demand trends, with admissions up 5.8% and revenue rising nearly 9% year over year, but the headline numbers masked pressure points that spooked the market. A $23 million net loss, higher professional fee expenses, and a guidance cut on adjusted EBITDA triggered a sharp sell-off during the same quarter the position was unwound.
Adjusted EBITDA surged 46% to $143 million, helped by non-recurring items, yet management revised full-year adjusted EBITDA guidance down to $530 million to $555 million, citing payor denials and cost inflation. That revision mattered more than the growth figures. Shares fell hard, and the stock now trades more than 40% below year-ago levels.
The full exit stands out when viewed against the fund’s remaining holdings, which skew toward industrials, aerospace, and asset-light financial names rather than operationally complex healthcare providers. Ultimately, it’s important to remember that hospitals carry regulatory risk, labor volatility, and reimbursement uncertainty, which are all amplified in a margin-sensitive environment.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool recommends Hexcel. The Motley Fool has a disclosure policy.