Is SiTime Corporation (SITM) a Good Long Term Investment?
Wasatch Global Investors, an asset management company, released its “Wasatch Micro Cap Value Fund” third-quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund fell -3.13%, underperforming its benchmark index, the Russell Microcap Index, which declined -0.48%. Holdings in information technology, consumer discretionary, and zero exposure to the real estate sector were the sources of the fund’s strength in the quarter. In contrast, stock selection in health care and consumer staples and overweight position in industrials dragged the performance. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Wasatch Global Investors highlighted stocks like SiTime Corporation (NASDAQ:SITM) in its Q3 2022 investor letter. Headquartered in Santa Clara, California, SiTime Corporation (NASDAQ:SITM) is a silicon timing systems provider. On December 30, 2022, SiTime Corporation (NASDAQ:SITM) stock closed at $101.62 per share. One-month return of SiTime Corporation (NASDAQ:SITM) was -0.32% and its shares lost 65.55% of their value over the last 52 weeks. SiTime Corporation (NASDAQ:SITM) has a market capitalization of $2.179 billion.
Wasatch Global Investors made the following comment about SiTime Corporation (NASDAQ:SITM) in its Q3 2022 investor letter:
“Another significant detractor was SiTime Corporation (NASDAQ:SITM), a developer of silicon-based timing components—which are superior to less-expensive quartz-based components. The company manufactures oscillators, clock generators and embedded resonators used for ethernet switches, computing devices, graphics cards, disk drives, mobile phones and subscriber-identity cards. The stock was down because the company lowered earnings guidance based on temporarily weaker consumer demand. We recently visited SiTime in Santa Clara, California, and we came away from the visit even more optimistic that consumer demand will rebound over the long term. Additionally, the company doesn’t have many supply-chain challenges because it has greater inhouse control of its manufacturing processes compared to typical electronics businesses. Nevertheless, we acknowledge that SiTime benefited from orders amid the pandemic that are unlikely to recur going forward.”
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SiTime Corporation (NASDAQ:SITM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held SiTime Corporation (NASDAQ:SITM) at the end of the third quarter, which was 23 in the previous quarter.
We discussed SiTime Corporation (NASDAQ:SITM) in another article and shared Renaissance Investment Management's views on the company. In addition, please check out our hedge fund investor letters Q3 2022 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.
