On February 17, 2026, 4D Advisors disclosed in a U.S. Securities and Exchange Commission filing that it sold out its stake in U.S. Physical Therapy (USPH +1.12%) during the fourth quarter.
What happened
According to an SEC filing dated February 17, 2026, 4D Advisors reported a complete exit from its holding in U.S. Physical Therapy (USPH +1.12%), selling 110,000 shares. The quarter-end position value declined by $9.34 million as a result.
What else to knowTop holdings after the filing:NYSE: TPB: $12.47 million (6.8% of AUM)NASDAQ: CWST: $9.30 million (5.1% of AUM)NYSE: FSS: $7.60 million (4.2% of AUM)NASDAQ: AXON: $7.10 million (3.9% of AUM)NYSE: FICO: $6.76 million (3.7% of AUM)As of February 17, 2026, shares of U.S. Physical Therapy were priced at $86.54, up 0.2% over the past year.Company overviewMetricValuePrice (as of market close February 17, 2026)$86.54Market capitalization$1.3 billionRevenue (TTM)$758.7 millionNet income (TTM)$36.0 millionCompany snapshotU.S. Physical Therapy operates outpatient physical therapy clinics and provides industrial injury prevention services, including rehabilitation, ergonomic assessments, and performance optimization.The company generates revenue primarily through patient care services at clinics and contracts for on-site injury prevention and testing for corporate clients.It serves a broad customer base, including individuals needing orthopedic or neurological rehabilitation, Fortune 500 companies, insurers, and contractors.
U.S. Physical Therapy is a leading provider of outpatient physical therapy and industrial injury prevention services across the United States. The company leverages a diversified clinic network and specialized service offerings to address both individual and corporate healthcare needs. Its dual-segment strategy drives recurring revenue and positions it competitively in the healthcare services industry.
What this transaction means for investors
Healthcare services names are supposed to offer steady compounding, and when they stall, capital might often rotate. U.S. Physical Therapy’s stock is essentially flat over the past year, even as the broader market pushed higher. That kind of relative underperformance often forces investors to reassess opportunity cost.
The company’s latest results showed modest growth, with revenue up more than 16% to about $173.8 million and gross profit up over 20% to $35.2 million, but the previous earnings release stoked investor concerns over declining year-over-year profitability, pushing shares down some 12% despite revenue beating expectations.
Within a portfolio that now tilts toward consumer, waste services and data-driven businesses, a full exit suggests this position no longer met return hurdles, particularly with how volatile the stock has been. Nevertheless, CEO Chris Reading pointed to several acquisitions and new hospital relationships in key markets as catalysts for long-term value. For now, however, shares are still underperforming.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Axon Enterprise. The Motley Fool recommends Fair Isaac and Turning Point Brands. The Motley Fool has a disclosure policy.
