What happened
According to a Securities and Exchange Commission (SEC) filing dated Feb. 17, 2026, Brown Capital Management sold 232,073 shares of Manhattan Associates (MANH 1.72%) during the fourth quarter of 2025. The estimated transaction value was $42.42 million, based on the average closing price for the period. At quarter’s end, the position’s reported value fell by $53.51 million, reflecting both the share sale and stock price movement.
What else to know
The sale reduced the stake to 2.67% of reportable AUM, down from 3.54% before the quarter’s trading.
- Top holdings after the filing:
- Camtek: $114.33 million (9.4% of AUM)
- Global-e Online: $94.53 million (7.8% of AUM)
- CyberArk Software: $68.04 million (5.6% of AUM)
- Repligen: $44.89 million (3.7% of AUM)
- Xometry: $41.55 million (3.4% of AUM)
As of Feb. 20, 2026, shares of Manhattan Associates were priced at $144.27, down 28.4% over the prior year and underperformed the S&P 500 by 42 percentage points.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $1.08 billion |
| Net income (TTM) | $219.95 million |
| Price (as of market close 2/20/26) | $144.27 |
| One-year price change | (28.4%) |
Company snapshot
Manhattan Associates:
- Offers supply chain management, inventory optimization, omni-channel operations software, and logistics execution solutions, including Manhattan SCALE and Manhattan Active.
- Generates revenue primarily through software licensing, maintenance, professional services, and hardware resales, serving clients via direct sales and partnerships.
- Caters to industries including grocery, retail, manufacturing, pharmaceuticals, third-party logistics, and wholesale, with a global client base spanning the Americas, EMEA, and Asia Pacific.
Manhattan Associates is a technology company specializing in advanced software solutions for supply chain and omni-channel commerce management. Its integrated platform supports complex logistics, inventory, and fulfillment operations for large enterprise customers worldwide. The company's scale and continuous innovation in supply chain optimization underpin its competitive positioning in the software applications industry.
What this transaction means for investors
I don’t think Brown Capital’s sale of Manhattan Associates is anything for investors to panic about for a few reasons. First, of its 58 holdings, Brown bought shares in only five, while selling the other 53. This isn’t anything Manhattan-specific. Second, the firm has been gradually selling down its Manhattan position over the last few years, selling the stock in each of the last nine quarters. After holding the stock since 2009 and reaping impressive returns, Brown seems to merely be cashing in on a hugely successful investment to fund investor outflows. Last, Manhattan remains the fund’s 14th-largest position, at 2.7% of the portfolio, so it isn’t a meaningless position.
From a stock perspective, it has been a rough year for Manhattan, down 43% from its 52-week high. With the market seemingly punishing any software stock that could even remotely be disrupted or hindered by AI, Manhattan has been caught up in the broad SaaS stock sell-off. However, I think these fears are overdone. The company has been a leader on Gartner’s Warehouse Management Systems Magic Quadrant report for over a decade and is actively deploying AI agents (and other AI use cases) across its supply chain software. Buoyed by supply chain systems moving to the cloud and the rise of omnichannel, which are necessitating more complex, on-time capabilities like Manhattan’s, I think the stock’s future remains bright.
Currently trading at just 21 times free cash flow -- its lowest valuation since 2019 -- Manhattan’s 8% annualized sales growth rate over the last decade looks reasonably priced. While the threat of AI disruption remains, Manhattan’s systems should benefit from a switching costs moat of sorts, as implementing a new supply chain system across the board, pieced together by AI in some manner, would be a massive undertaking. AI disruption is not impossible by any means, but it won’t be an overnight threat to the business, so I would be contrarian to Brown Capital and will likely keep buying Manhattan shares at this reasonable valuation.
