Here’s Why AstroNova (ALOT) Stock is Cheap

Atai Capital, an investment management firm, recently released its second investor letter. A copy of the same can be downloaded here. The fund returned 8.32% in the second quarter of 2023 and 13.06% year-to-date, net of all fees, compared to a 16.89% total return for the S&P 500 YTD and an 8.09% total return for the Russell 2000 YTD. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Atai Capital highlighted stocks like AstroNova, Inc. (NASDAQ:ALOT) in the second quarter 2023 investor letter. Headquartered in West Warwick, Rhode Island, AstroNova, Inc. (NASDAQ:ALOT) develops and manufactures specialty printers, and data acquisition and analysis systems. On July 12, 2023, AstroNova, Inc. (NASDAQ:ALOT) stock closed at $14.16 per share. One-month return of AstroNova, Inc. (NASDAQ:ALOT) was -8.17%, and its shares gained 18.89% of their value over the last 52 weeks. AstroNova, Inc. (NASDAQ:ALOT) has a market capitalization of $107.151 million.

Atai Capital made the following comment about AstroNova, Inc. (NASDAQ:ALOT) in its second quarter 2023 investor letter:

“There are several reasons why Mr. Market might be offering me an opportunity to buy something at a steep discount. The exact reason depends on the situation of course, but our largest position makes for a good example.

So that raises the question, WHY is AstroNova, Inc. (NASDAQ:ALOT) cheap?

$100M market cap & illiquid (making it difficult for larger institutions to buy today) • Earnings are depressed (the stock has no sell-side coverage and does not screen well) • The business is boring and misunderstood (selling airplane cockpit printers probably doesn’t come across as the best business in the world at first glance, and it definitely isn’t a shiny new AI company, but it is a monopoly!) • The company provides no guidance, and past results aren’t exactly linear (This makes modeling future earnings with any sort of confidence time-consuming for those who are not already familiar with the story) • Management is also far from promotional (but are solid operators)…” (Click here to read the full text)

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AstroNova, Inc. (NASDAQ:ALOT) is not on our 30 Most Popular Stocks Among Hedge Funds list. As per our database, 3 hedge fund portfolios held AstroNova, Inc. (NASDAQ:ALOT) at the end of first quarter which was 3 in the previous quarter.

We discussed AstroNova, Inc. (NASDAQ:ALOT) in another article and shared the list of top stocks activist investors are targeting in recent weeks. In addition, please check out our hedge fund investor letters Q2 2023 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.