Senvest Management in New York City sold 1.6 million shares of Bank OZK in the third quarter, fully exiting the position and reducing exposure by $74.4 million. Bank OZK shares are priced at $47.10, underperforming the S&P 500. The bank reported record net income of $180.5 million in the third quarter.

According to a filing with the SEC, Senvest Management divested nearly 1.6 million shares of Bank OZK, which represented 2.5% of its assets under management. Top holdings after the sale include WIX, TSEM, EPAM, PATH, and ILMN. Bank OZK offers retail and commercial banking services and generates revenue primarily through net interest income and fees.

Despite a flat share price this year, Senvest’s exit from Bank OZK signals a portfolio rotation rather than deteriorating fundamentals. The bank reported record net income and EPS in the third quarter. Investors should consider the bank’s consistent profitability against its slower share momentum and valuation for a potential margin of safety.

Read more at Yahoo Finance: Why One Fund Dumped $74 Million of Bank OZK Stock Despite a Record $180.5 Million Earnings