Wasatch Portfolio Adjustment
Wasatch Advisors Reduces Stakes in Bank and Payment Companies, Other Funds Increase Holdings
Key Points
Director Thomas A. Mcdonnell of Euronet Worldwide purchased 3,000 shares on May 26 at an average price of $66.87, a trade worth about $200,610, with insiders now owning 100,219 shares worth roughly $6.7 million.
While Wasatch trimmed Esquire Financial, several other large institutional buyers increased their ESQ stakes in the period: Mawer Investment Management Ltd (+3.1% to 800,465 shares), Vanguard Group Inc. (+2.7% to 450,577 shares), and Copeland Capital Management LLC (+11.6% to 265,550 shares), with institutional ownership totaling about 54.66%.
Paymentus: Wasatch reduced its stake by 7.7% in the first quarter to 7,896,896 shares, which equates to about 1.3% of Wasatch’s portfolio and roughly 6.28% ownership of Paymentus itself, with the position valued around $200.6 million.
Shift4 Payments: Wasatch cut its holdings by 38.0% in the first quarter, reducing the stake to 4,206,244 shares valued at about $183.94 million.
Wasatch Advisors LP trimmed its stakes in five banking and fintech companies during the first quarter of 2026, unloading shares in Esquire Financial, Paymentus, Euronet Worldwide, Bank OZK, and Shift4 Payments. The deepest cut was a 38% reduction in Shift4 Payments, bringing that holding to 4,206,244 shares worth about $183.94 million, according to Watchlist News.
The Salt Lake City firm, which manages roughly $18.7 billion in equities, also slashed its Euronet position by nearly 30% and cut Bank OZK by 11.8%. The moves point to a broader retreat from regional banks and legacy fintech as high interest rates and AI-driven disruption reshape the sector.
Five Stocks Cut as Wasatch Reshapes Its Portfolio
Wasatch reduced its Euronet Worldwide stake by 29.7%, selling 218,927 shares and leaving it with 518,754 shares worth about $34.43 million, according to Watchlist News. Bank OZK fell 11.8% to 6,126,398 shares valued at roughly $281.14 million after the firm sold 818,947 shares. Paymentus dropped 7.7% to 7,896,896 shares, worth about $200.6 million — around 1.3% of Wasatch's total portfolio.
Esquire Financial saw the smallest trim, down just 4.6% to 344,046 shares worth about $37 million. Shift4 Payments took the hardest hit at 38%, cut to 4,206,244 shares. Shift4's CEO Jared Isaacman remains the dominant shareholder, holding over 22 million Class A and Class C shares, according to Ticker Report.
Rates and AI Fears Drove Wasatch's Selling Decision
The cuts came as Brent crude climbed toward $119 per barrel in early 2026, pushed higher by rising Middle East tensions. Higher oil prices fed inflation, which kept interest rates elevated. That environment squeezes fintech growth stocks like Paymentus and Shift4, which need cheap borrowing to fund expansion.
Wasatch also flagged concern about AI disrupting older payment business models. The firm's March commentary warned that investors were beginning to "harshly punish" business models seen as vulnerable to AI-native payment platforms. CEO Mike Yeates has steered the firm toward "disciplined, team-based" investing with a focus on capital preservation over growth at any price.
Euronet Insider Buys the Dip Wasatch Is Selling
Not everyone agrees with Wasatch's read on Euronet. On May 26, Director Thomas A. McDonnell bought 3,000 shares on the open market at $66.87 each — a trade worth about $200,610, according to Watchlist News. That price was near a 52-week low for the stock. McDonnell now holds 100,219 shares worth roughly $6.7 million.
Needham & Company backed the insider's bullish view, re-issuing a "Buy" rating with an $85 price target. Analysts pointed to Euronet's digital payment networks, Ren and Dandelion, which now make up 21% of company revenue. McDonnell's $200,610 purchase is the clearest sign that Euronet's own leadership sees the current price as a bargain.
Rivals Buy Esquire Financial Shares Wasatch Is Shedding
While Wasatch trimmed its Esquire Financial position, other big institutions moved in the opposite direction. Mawer Investment Management raised its stake by 3.1% to 800,465 shares. Vanguard Group added 2.7%, reaching 450,577 shares. Copeland Capital Management grew its position by 11.6% to 265,550 shares. Total institutional ownership in Esquire sits at about 54.66%, according to Watchlist News.
The divergence suggests Wasatch's exit is less about a fundamental flaw in Esquire and more about portfolio housekeeping. Wasatch reopened its Core Growth Fund in early 2026, signaling it is hunting for new entry points in small-caps outside traditional banking and payments. The shares it sells are being absorbed quickly by rivals who see the niche legal-specialty bank as undervalued.
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