Kadensa Capital Liquidates Stride Position Amid Stock's 50% Plummet

What happened

According to a recent SEC filing dated Feb. 17, 2026, Kadensa Capital Ltd sold its entire position in Stride (NYSE: LRN) during the fourth quarter. The fund disposed of 157,101 shares, with an estimated transaction value of $23.40 million based on the quarter's average price. The quarter-end position value dropped by $23.40 million, capturing the combined effects of the trade and underlying price movements.

What else to know

Kadensa Capital sold out its Stride holding, down from 2.4% in the previous quarter.

• Top holdings after the filing:
  • Nvidia: $97.38 million (10.1% of AUM)
  • Tesla: $60.65 million (6.3% of AUM)
  • Taiwan Semiconductor Manufacturing: $60.04 million (6.2% of AUM)
  • Alibaba Group: $54.29 million (5.6% of AUM)
  • GE Aerospace: $48.69 million (5.1% of AUM)

As of March 12, 2026, Stride shares were trading at $84.78, down 29.1% over the past year and underperforming the S&P 500 by 50 percentage points.

Company overview

Metric	Value
Revenue (TTM)	$2.52 billion
Net income (TTM)	$318.94 million
Market capitalization	$3.59 billion
Price (as of market close 3/12/26)	$84.78

Company snapshot

Stride:

• Delivers proprietary and third-party online curriculum, software systems, and educational services for K-12 and adult learners, including career training programs.
• Operates a technology-driven education model, generating revenue through contracts with public and private schools, direct-to-consumer offerings, and workforce development services.
• Serves public and private schools, school districts, charter boards, individual learners, employers, and government agencies in the United States and internationally.

Stride is a leading provider of technology-based education solutions, supporting individualized learning through a broad portfolio of digital curriculum and career-focused programs. The company leverages its scale and proprietary platforms to serve diverse educational needs, from K-12 students to adult learners seeking workforce skills. Stride's integrated approach and established relationships with schools and employers position it as a key player in the evolving education and training services sector.

What this transaction means for investors

While we can’t tell whether Kadensa Capital sold out of its Stride position before or after the stock’s 50% drop following earnings in October, it is an interesting transaction for investors to note. Two quarters ago, Stride reported that an upgraded platform implementation went all wrong, causing the company to miss between 10,000 and 15,000 new enrollments in its curriculum. This was a massive hit considering Stride has a total enrollment of less than 250,000.

However, during the company’s most recent Q2 earnings call, it announced that enrollments jumped 8% and that its core platform issues had been resolved, with a new user experience set to be deployed in Q3. I bought a bit of Stride stock following its shellacking in November and think the company’s long-term potential (and decades-long tailwinds) outweigh this short-term tech issue. With only 35% of Americans satisfied with the public school system, options like Stride’s are only going to become more important over time, in my opinion.

Currently trading at just 10 times forward earnings -- and starting a new share repurchase authorization while its shares are trading at a discount -- steady sales growth would make the company a winner, barring any future mishaps like we just saw. Management is guiding for 6% revenue growth in 2026. While I understand Kadensa Capital’s decision to sell (hopefully they got to before the drop), I’d only look to buy Stride at today’s valuation and will probably continue to do so.

Josh Kohn-Lindquist has positions in Nvidia, Stride, and Tesla. The Motley Fool has positions in and recommends GE Aerospace, Nvidia, Stride, Taiwan Semiconductor Manufacturing, and Tesla. The Motley Fool recommends Alibaba Group. The Motley Fool has a disclosure policy.