What to Know About This Fund's $13.9 Million Exit From a Skyrocketing AI Power Play
Key Points
Archon Capital Management sold 1,325,045 shares of Babcock & Wilcox Enterprises last quarter; the estimated transaction value was $13.93 million.
The move represents a roughly 8% change in 13F reportable assets under management (AUM).
It also marked a full exit, with Archon reporting no BW holdings at quarter's end.
On May 14, 2026, Archon Capital Management disclosed in a Securities and Exchange Commission (SEC) filing that it sold out its entire position in Babcock & Wilcox Enterprises (NYSE:BW), liquidating 1,325,045 shares for an estimated $13.93 million based on quarterly average pricing.
What happened
According to an SEC filing dated May 14, 2026, Archon Capital Management sold all 1,325,045 shares of Babcock & Wilcox Enterprises in the first quarter. The estimated transaction value was $13.93 million, calculated using the average closing price from January through March 2026. The fund reported holding zero shares of the company at quarter-end, with the position’s net value change at $8.40 million as a result.
What else to know
- Top holdings after the filing:
- NASDAQ:BAND: $10.39 million (5.9% of AUM)
- NASDAQ:APYX: $10.30 million (5.8% of AUM)
- NYSE:SVV: $9.65 million (5.5% of AUM)
- NASDAQ:BRZE: $9.51 million (5.4% of AUM)
- NASDAQ:OMDA: $9.11 million (5.1% of AUM)
- As of Thursday, shares of Babcock & Wilcox Enterprises were priced at $20.54, skyrocketing nearly 2,700% over the past year. The S&P 500, meanwhile, is up 27% in the same period.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $653.5 million |
| Net Income (TTM) | ($128.90 million) |
| Market Capitalization | $91.1 million |
| Price (as of market close May 14, 2026) | $20.54 |
Company Snapshot
- Babcock & Wilcox provides energy and emissions control solutions, including waste-to-energy, biomass energy systems, emissions control technologies, and steam generation equipment.
- The firm operates a segment-based business model across Renewable, Environmental, and Thermal divisions, generating revenue from equipment sales, aftermarket parts, and field services.
- It serves industrial, utility, municipal, and energy sector customers globally, with a focus on power generation, environmental compliance, and process industries.
Babcock & Wilcox Enterprises, Inc. is a leading provider of energy and environmental technologies, with a diversified portfolio spanning renewable energy, emissions control, and thermal solutions. The company leverages over 150 years of industry expertise to deliver critical infrastructure and sustainability solutions to industrial and utility clients worldwide. Its scale and technical breadth position it as a key partner for customers seeking to modernize operations and meet evolving regulatory standards.
What this transaction means for investors
Taking one look at Babcock & Wilcox’s recent stock performance gives you some pretty glaring hints at why a firm might want to sell shares even if it hasn’t lost conviction in the overall thesis. What's also notable, however, is that Babcock & Wilcox's operating performance continues to improve. First-quarter revenue jumped 44% to $214.4 million, while adjusted EBITDA surged 296% to $16.1 million. The company's pipeline expanded 17% to more than $14 billion, bookings skyrocketed to $2.5 billion (up nearly 2,000%), and backlog reached $2.7 billion. Management also highlighted growing demand from AI data center customers and continued progress on its Base Electron project.
The balance sheet has improved as well. Net debt fell to $42.4 million from $349.3 million a year earlier, and earlier this week, the company raised approximately $230 million through a stock offering to support AI data center projects, expand production capacity, and strengthen its financial position. BW shares are still down roughly 80% from their highs roughly a decade ago, so it’s clear there has been some intense volatility in the past. For long-term investors, however, it’s more important to stay focused on current fundamentals and how the firm executes on projected growth. And remember: With staggering gains, there are often loftier expectations in the short-term.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Braze, Omada Health, and Savers Value Village. The Motley Fool recommends Bandwidth. The Motley Fool has a disclosure policy.