Gagnon Securities fully exited its position in Power Solutions International (PSIX 6.21%), selling approximately 64,770 shares in the fourth quarter. The estimated trade value was $6.36 million, according to a February 12, 2026, SEC filing.
What happened
According to a SEC filing dated February 12, 2026, Gagnon Securities LLC sold its remaining 64,770 shares of Power Solutions International in the fourth quarter. As a result, the fund reported no holdings in Power Solutions International at year-end, with the position value declining by $6.36 million from the prior quarter.
What else to know
- Top five fund holdings after the filing:
- NASDAQ:CDNA: $33.44 million (6.9% of AUM)
- NASDAQ:WGS: $32.97 million (6.8% of AUM)
- NYSE:AL: $31.92 million (6.6% of AUM)
- NASDAQ:ENSG: $31.45 million (6.5% of AUM)
- NYSE:AMRC: $24.40 million (5.0% of AUM)
- As of February 12, 2026, shares of Power Solutions International were priced at $92.72, up a staggering 140% over the past year and well outperforming the S&P 500’s roughly 12% gain in the same period.
Company overview
| Metric | Value |
|---|---|
| Price (as of market close 2026-02-12) | $92.72 |
| Market capitalization | $2.14 billion |
| Revenue (TTM) | $675.48 million |
| Net income (TTM) | $121.20 million |
Company snapshot
- Power Solutions International, Inc. designs and manufactures alternative-fueled and conventional engines, integrated power systems, and related components for industrial, energy, and transportation markets.
- The company generates revenue by supplying complete power systems, engine blocks, and custom-engineered solutions to original equipment manufacturers and end users worldwide.
- Primary customers include manufacturers of off-highway equipment, on-road vehicles, power generation systems, and specialty vehicles across North America and international markets.
Power Solutions International, Inc. operates at scale with a focus on engineering and delivering advanced power solutions for diverse industrial applications. The company leverages its expertise in alternative-fueled and conventional engine technologies to address the needs of OEMs and specialized equipment manufacturers. Strategic collaborations and a broad product portfolio support its competitive position in the industrial machinery sector.
What this transaction means for investors
Selling into strength can be a form of risk control, especially when a smaller industrial name has already doubled. Power Solutions International recently posted record third quarter sales of $203.8 million, up 62%, and net income of $27.6 million, up 59%, with diluted EPS of $1.20. For the first nine months of 2025, net income reached $97.9 million, more than doubling year over year.
The growth story is tied to data center demand, which management highlighted as a key driver of the 45% expected full year sales increase for 2025. At the same time, gross margin compressed to 23.9% as the company ramped production, showing that rapid expansion is powerful, but it introduces operational risk.
Within the broader portfolio, capital appears to be consolidating into positions like CDNA, WGS, and Air Lease, each holding similar or greater weight. That context matters. When a stock climbs 140% in a year, trimming or exiting can reflect discipline rather than doubt. Long-term investors should focus on durability. If data center demand sustains and margins stabilize, PSI may continue compounding. But after a parabolic move, protecting gains is hardly irrational.
