Wasatch Global Investors, an asset management company, released its “Wasatch Micro Cap Value Strategy” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. During the first quarter, the strategy outperformed the benchmark Russell Microcap Index which rose 4.68%. Most of the portfolio holdings of the strategy met or exceeded earnings and revenue expectations in the quarter. Investor sentiments gradually improved as the quarter went on. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Wasatch Micro Cap Value Strategy highlighted stocks like Impinj, Inc. (NASDAQ:PI), in the first quarter 2024 investor letter. Impinj, Inc. (NASDAQ:PI) offers a cloud connectivity platform. The one-month return of Impinj, Inc. (NASDAQ:PI) was -6.46%, and its shares gained 36.37% of their value over the last 52 weeks. On June 7, 2024, Impinj, Inc. (NASDAQ:PI) stock closed at $149.91 per share with a market capitalization of $4.155 billion.
Wasatch Micro Cap Value Strategy stated the following regarding Impinj, Inc. (NASDAQ:PI) in its first quarter 2024 investor letter:
“Impinj, Inc. (NASDAQ:PI), a pioneer in helping develop the “Internet of Things,” was also a contributor. The company provides an infrastructure by which items in storage or in transit—such as car parts and even shipping containers— communicate over the internet. Impinj deploys wireless inventory management and tracking platforms for customers in retail, manufacturing, health care and other areas. The company also provides tiny radio-frequency identification chips to connect, count and track individual items. Early in 2023, the stock fell due to a slowdown in platform deployments and chip orders. The slowdown occurred because customers had previously obtained extra inventory based on fears of Covid-related supply-chain disruptions. More recently, the stock has rebounded on reports of solid revenues and profitability that have exceeded expectations. Additionally, management has expressed optimism that Impinj’s long-term business opportunities remain intact. While our positive assessment of the company is unchanged, we sold some shares because we’ve learned from experience to trim our position on strength and add on weakness.”
A computer engineer seated in front of several connected consoles, illustrating the depth of cloud services offered by the company.
Impinj, Inc. (NASDAQ:PI) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held Impinj, Inc. (NASDAQ:PI) at the end of the first quarter which was 16 in the previous quarter. Impinj, Inc. (NASDAQ:PI) reported a robust first quarter. The revenue and profitability exceeded both Q4 2023 results and Q1 guidance. Impinj, Inc.’s (NASDAQ:PI) revenue for the first quarter was $76.8 million, an increase of 9% sequentially from $70.7 million in Q4 2023, and down 11% year-over-year from $86.0 million in Q1 2023. While we acknowledge the potential of Impinj, Inc. (NASDAQ:PI) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Impinj, Inc. (NASDAQ:PI) and shared Alger Weatherbie Specialized Growth Fund’s views on the company. Impinj, Inc. (NASDAQ:PI) remained a strong contributor to the Wasatch Micro Cap Value Strategy’s performance in Q4 2023. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
