Why This Fund Sold $11 Million of BILL Stock Despite a $1 Billion Buyback Plan
Key Points
Light Street sold 253,000 shares of BILL last quarter; the estimated trade size was $11.32 million based on average prices during the quarter.
Meanwhile, the quarter-end position value declined by $23.95 million, reflecting both trading and price movement.
Post-sale, the fund holds 625,000 BILL shares valued at $23.94 million.
On May 15, 2026, Light Street Capital Management disclosed a sale of 253,000 shares of BILL Holdings (NYSE:BILL), estimated at $11.32 million based on quarterly average pricing.
What happened
According to the SEC filing dated May 15, 2026, Light Street Capital Management reduced its position in BILL Holdings by 253,000 shares in the first quarter. The estimated transaction value was $11.32 million, based on the average closing price over the quarter. The value of the BILL stake fell by $23.95 million from the previous quarter, a figure that reflects both share sales and changes in market price.
What else to know
- The fund executed a sell, leaving BILL at 4.48% of reportable 13F AUM after the quarter’s trades
- Top holdings after the filing:
- NYSE: TSM: $76,912,351 (15.47% of AUM)
- NASDAQ: NVDA: $47,474,122 (9.55% of AUM)
- NASDAQ: AVGO: $46,364,598 (9.32% of AUM)
- NASDAQ: AMD: $44,602,231 (8.97% of AUM)
- NASDAQ: CHYM: $38,913,729 (7.82% of AUM)
- As of Friday, BILL shares were priced at $36.14, down 18% over the past year and well underperforming the S&P 500, which is up about 28%.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $1.60 billion |
| Net income (TTM) | $163,000 |
| Price (as of market close May 14, 2026) | $39.49 |
| One-year price change | (18%) |
Company snapshot
- BILL offers cloud-based software for automating back-office financial operations, including accounts payable, accounts receivable, and spend management solutions.
- The firm generates revenue through a software-as-a-service (SaaS) model, transaction-based fees, and value-added services such as onboarding and ongoing support.
- It targets small and midsize businesses, accounting firms, financial institutions, and software companies as primary customers.
BILL leverages a SaaS business model to deliver scalable, recurring revenue while streamlining financial processes for its clients.
What this transaction means for investors
BILL stock has struggled over the past year as investors recalibrated expectations for fintech growth, but the underlying operating trends remain considerably stronger than the share price performance suggests.
In its latest quarter, BILL reported revenue of $406.6 million, up 13% year over year, while core revenue, which excludes interest income on customer funds, grew 16% to $371.1 million. The company also swung back to profitability, generating $12.8 million in net income compared with a loss a year earlier. Meanwhile, payment volume reached $89 billion, and transactions processed climbed 14% to 34 million.
Management sounded notably confident. Founder and CEO René Lacerte said BILL's platform continues to create significant value for customers and highlighted AI as an "extraordinary opportunity" to solve more customer pain points. The company also authorized a new $1 billion share repurchase program, a sign that leadership believes the stock offers attractive long-term value.
For long-term investors, the key question is whether BILL can keep translating growing payment volume and customer engagement into sustained earnings growth. If it can, today's valuation may ultimately look more like an opportunity than a warning sign.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Bill Holdings, Broadcom, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.