Shares of LightPath Technologies tumbled 10.5% to $13.46 on heavy volume as investors digested the full scope of major holder North Run Strategic Opportunities Fund's aggressive liquidation campaign — a selling spree far larger than previously understood that raises hard questions about whether this defense-optics darling has gotten ahead of its fundamentals.
• North Run Didn't Just Trim — It Ran for the Exit With Over $60 Million in Sales The headline figure of ~$9.1 million sold in late February barely scratches the surface. North Run sold 733,354 shares between February 20–24 at prices ranging from $12.01 to $13.18. But filings reveal the fund kept selling: another 293,052 shares over May 12–14 , 55,284 more on May 18 at ~$12.32 , and then the knockout punch — 3,571,400 shares at $14.00 in a registered secondary offering on June 3, totaling roughly $50 million . That cumulative liquidation dwarfs a typical rebalancing and signals a deliberate de-risking.
• The Math Behind the Selling: North Run Bought Cheap and Cashed In Big
North Run converted 7,678 shares of Series G preferred stock into 3.57 million common shares at a conversion price of just $2.15 each — then flipped those shares the next day at $14.00. That's a roughly 550% gain on a single conversion-and-sell maneuver, and it shows why insiders are motivated sellers at these levels.
• A Billion-Dollar Valuation on a Money-Losing Business Needs More Proof
LightPath's market cap sits around $1 billion , yet trailing twelve-month revenue is just $37.2 million with a net loss of $14.9 million . That puts the stock at roughly 11x sales while still burning cash — operating cash flow was negative $8.3 million . Revenue growth is undeniably strong — Q3 gross profit surged 161% to $7 million and backlog reached $97.8 million — but investors are paying a premium price for a company that hasn't yet proven it can turn topline momentum into actual profits.
• Fresh Capital Helps, but Dilution Stings
The June 3 deal included 3.57 million primary shares that raised ~$47 million net for working capital, acquisitions, and general corporate purposes . That cash cushion is meaningful for a small company, but it came alongside North Run's equally sized secondary block — flooding the market with over 7.1 million new shares and pressuring the price. The most recent analyst price target is $16.50 with a Buy rating , now just 23% above today's close, leaving limited upside if selling pressure persists.