4D Advisors Initiated a Big Position in USPH Worth Over $9 Million. Is the Stock a Buy?

4D Advisors disclosed a new position in U.S. Physical Therapy (NYSE:USPH), acquiring 110,000 shares valued at $9.34 million as of Sept. 30, 2025, equal to 4.97% of its 13F-reportable AUM and making USPH the fund’s third-largest holding; the filing raises the fund’s total reported holdings to 33. The stake comes as USPH shares traded at $71.67 on Nov. 14, 2025 (down 18.75% over the past year), while the company posted trailing-12-month revenue of $758.7 million, net income of $36.0 million, a 2.5% dividend yield and a five-year revenue CAGR of 6.85%. 4D’s sizeable, immediate allocation suggests a bullish conviction in USPH’s position in the fragmented outpatient rehab and occupational-health market and in its recent revenue momentum, despite recent share-price weakness.

Analysis

4D Advisors disclosed a new, sizable position in U.S. Physical Therapy (USPH), acquiring 110,000 shares valued at $9.34 million as of the September 30, 2025 quarter-end; this purchase represents 4.97% of the fund’s 13F-reportable AUM and immediately became the fund’s third-largest holding among 33 reported positions. The filing dated November 14, 2025 therefore signals deliberate portfolio allocation rather than a token stake, and the purchase price context is the $71.67 closing share price on November 14, 2025.

Company fundamentals reported in the article show revenue momentum with TTM revenue of $758.71 million and net income of $36.02 million, and year-to-date sales through nine months of $578.3 million versus $490.9 million in 2024; dividend yield is 2.5% and five-year revenue CAGR is 6.85%. The stock has nonetheless declined 18.75% over the past year and underperformed the S&P 500 by 32.75 percentage points, while reported P/E compressed from over 85 to about 32 in 2025.

The trade implies 4D sees upside from USPH’s scale in a fragmented outpatient rehab market and clinic expansion (the company reported clinics in 44 states by Q3), but material downside exists if recent revenue growth does not convert to sustained margin or earnings improvement; note that the 13F disclosure reflects quarter-end positions and may lag intra-quarter trading activity.

Key Decisions for Investors

• Consider a measured accumulation on price weakness given the reported revenue acceleration (YTD $578.3m vs $490.9m in 2024) and lower valuation (P/E ~32) but limit initial sizing because the stock has underperformed the market by ~33 percentage points over the last year
• Monitor upcoming quarterly disclosures for clinic footprint expansion, same-store sales and margin trends and assess whether net income growth (TTM $36.02m) and dividend coverage improve before increasing exposure
• Implement position-sizing controls or protective hedges and reassess if share-price weakness persists or if revenue growth fails to convert into consistent margin/earnings improvement