Does PAR Technology Corporation (PAR) Have Huge Opportunities Ahead?
Greenhaven Road Capital, an investment management company, released its first quarter 2023 investor letter. A copy of the same can be downloaded here. The fund returned 17% in the first quarter. Even though fears of runaway inflation waned in the quarter, investors’ concerns relating to the macroeconomic factors weren’t fully eliminated. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Greenhaven Road Capital highlighted stocks like PAR Technology Corporation (NYSE:PAR) in the first quarter 2023 investor letter. Headquartered in New Hartford, New York, PAR Technology Corporation (NYSE:PAR) is a technology company that serves restaurants and retail industries. On May 19, 2023, PAR Technology Corporation (NYSE:PAR) stock closed at $34.74 per share. One-month return of PAR Technology Corporation (NYSE:PAR) was 8.43%, and its shares lost 2.03% of their value over the last 52 weeks. PAR Technology Corporation (NYSE:PAR) has a market capitalization of $952.084 million.
Greenhaven Road Capital made the following comment about PAR Technology Corporation (NYSE:PAR) in its Q1 2023 investor letter:
"PAR Technology Corporation (NYSE:PAR) – PAR ended 2022 with over $100M in cash on the balance sheet and no significant debt maturities until 2026. The company continues its march towards profitability, which is an important precursor to long-term survival. During the first quarter, PAR reiterated their commitment to hold expenses flat in their software business while continuing to grow revenues. By my estimates, PAR should grow annual recurring revenue (ARR) by +/- 30% for the foreseeable future. This revenue should drop to the bottom line, making the overall company profitable by the end of this year and the software business itself profitable by early next year.
PAR benefits from low single digit churn on their core point of sale (POS) offering, which is important for longer-term growth since the bottom of their proverbial bucket is not leaking. Their competitive landscape is also favorable: their primary competitors are legacy systems from NCR and Oracle, for both of which POS systems are tertiary products. While there will be increasing competition from the likes of Toast and Square, developing and selling products for enterprise restaurants is different, and I believe PAR should be able to continue managing the landscape adeptly…” (Click here to read the full text)
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PAR Technology Corporation (NYSE:PAR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held PAR Technology Corporation (NYSE:PAR) at the end of the fourth quarter which was 19 in the previous quarter.
We discussed PAR Technology Corporation (NYSE:PAR) in another article and shared the list of best emerging tech stocks to buy. In addition, please check out our hedge fund investor letters Q1 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.
