Meros Investment Management sold all 176,881 shares of Worthington Steel in the third quarter, representing a $5.3 million decrease in value. This position previously accounted for 2% of the fund’s AUM in the prior quarter. Worthington Steel shares were priced at $35.92, down 18% over the past year. The company offers carbon flat-rolled steel, tailor-welded blanks, and other products to industrial customers in North America.

After a difficult stretch, Meros’ exit from Worthington Steel is notable as the company shows improved fundamentals. Worthington Steel recently reported revenue growth, net earnings, and operating income increase. Long-term investors may see this as a portfolio repositioning move within a volatile small-cap market.

Jonathan Ponciano has no position in the mentioned stocks. The Motley Fool has positions in Ducommun and recommends Magnite.

Read more at Nasdaq: What a $5.3 Million Sell-Off Means for Worthington Steel Amid 60% Stock Slide