Is it Still Safe to Invest in Castle Biosciences (CSTL)?

Wasatch Global Investors, an investment management firm, published its “Wasatch Micro Cap Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. The Wasatch Micro Cap Fund—Investor Class slipped -0.44% for the fourth quarter. The benchmark Russell Microcap® Index posted a larger decline of -2.66%, while small, mid, and large-cap benchmarks generally posted gains for the same period. With risk aversion and uncertainty elevated, cautious investors sought the perceived safety of larger companies. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Wasatch Micro Cap Fund, in its Q4 2021 investor letter, mentioned Castle Biosciences, Inc. (NASDAQ: CSTL) and discussed its stance on the firm. Castle Biosciences, Inc. is a Friendswood, Texas-based molecular diagnostics company with a $1.1 billion market capitalization. CSTL delivered a 5.27% return since the beginning of the year, while its 12-month returns are down by -33.89%. The stock closed at $45.13 per share on March 03, 2022.

Here is what Wasatch Micro Cap Fund has to say about Castle Biosciences, Inc. in its Q4 2021 investor letter:

“Castle Biosciences, Inc. (CSTL) was also a significant detractor. The company offers test services for dermatological cancers that include various melanomas, as well as metastatic squamous cell carcinoma. Like a number of other medical conditions, testing and diagnosis of melanomas have been hampered during the pandemic as potential patients avoided office visits with their doctors. Looking forward, we expect rebounding patient volumes and better insurance reimbursements to drive a substantial improvement in Castle’s revenues.”

Photo by National Cancer Institute on Unsplash

Our calculations show that Castle Biosciences, Inc. (NASDAQ: CSTL) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. CSTL was in 12 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 15 funds in the previous quarter. Castle Biosciences, Inc. (NASDAQ: CSTL) delivered a 7.66% return in the past 3 months. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.