Stadium Capital Management reduced its stake in Grocery Outlet Holding Corp by 877,860 shares in Q3, amounting to a net change of $10.9 million. This exit accounts for 11.7% of the fund’s 13F assets under management, with no remaining shares in Grocery Outlet by quarter-end.

According to a recent SEC filing, Stadium Capital Management completely divested from Grocery Outlet Holding Corp, selling 877,860 shares worth an estimated $10.9 million. This move brings their position down to zero, representing a shift from a 10% portfolio holding to none as of September 30.

As of the latest report, Stadium Capital’s top holdings include NYSE:BLDR at $22.2 million, NYSE:BC at $19.5 million, NASDAQ:SNBR at $18.4 million, NYSE:NSP at $13 million, and NYSE:LCII at $8.9 million. Grocery Outlet Holding Corp’s shares closed at $11.13, down 48% in the past year, underperforming the S&P 500.

Grocery Outlet Holding Corp operates discount grocery stores in the US, focusing on value-priced products through a flexible sourcing strategy. Despite a challenging post-IPO journey, the company’s latest quarter showed modest growth but significant bottom-line pressure, prompting investor exits and a focus on operational improvements.

A complete exit from a top holding like Grocery Outlet signifies a shift in investor confidence amid ongoing challenges for the retailer. Stadium Capital’s divestiture aligns with a business undergoing restructuring and facing sales pressures, with a potential opportunity for long-term investors if the operational overhaul succeeds.

Read more at Yahoo Finance: Investor Dumps $10.9 Million in Grocery Outlet Stock as Shares Continue Multi-Year Downtrend