Independent Investment Manager Sells $24.6 Million of Exponent Stock, According to Recent Filing

Conestoga Capital Advisors, LLC disclosed a Q3 2025 partial divestment of Exponent (EXPO) shares, selling 344,631 units valued at $24.63 million. This reduced EXPO's weighting in Conestoga's 13F AUM to 2.63% from 2.99%, though the fund retains a significant $164.06 million position. The sale follows EXPO's substantial underperformance, with shares down 35.61% year-to-date and lagging the S&P 500 by over 50 percentage points, suggesting a cautious stance despite the retained holding.

Analysis

Conestoga Capital Advisors, LLC executed a partial divestment of Exponent (EXPO) shares in Q3 2025, selling 344,631 shares valued at $24.63 million. This transaction reduced EXPO's representation within Conestoga's 13F AUM from 2.99% to 2.63%, though the fund retains a substantial position of 2,361,196 shares worth $164.06 million, making it the 11th largest holding. The sale represents approximately a 13% reduction of Conestoga's prior stake in EXPO.

This reduction follows significant underperformance by EXPO, with its shares down 35.61% year-to-date as of October 23, 2025, lagging the S&P 500 by 50.09 percentage points over the same period. The stock's underperformance extends over a three-year horizon, where it has trailed the S&P 500 by over 100 percentage points. Conestoga's move, while not a full exit, suggests a cautious re-evaluation of its position given the sustained poor market performance.

Despite the share sale, Exponent reported TTM revenue of $560.51 million and net income of $102.84 million, operating a fee-for-service model across diverse technical consulting disciplines. The partial nature of Conestoga's sale, retaining a significant holding, presents a mixed signal: while bearish due to the divestment and underperformance, it also indicates some continued confidence in EXPO's long-term prospects or current valuation by the fund.

Key Decisions for Investors

• Monitor EXPO's relative performance against the S&P 500 for signs of reversal, given its significant underperformance over multiple periods.
• Evaluate Conestoga's retained $164.06 million position in EXPO as a potential signal of underlying value despite the partial divestment.
• Consider the company's fundamental strength, including its $560.51 million TTM revenue and diversified consulting model, against its current market valuation and recent price action.