Will UFP Technologies (UFPT) be Able to Attain Revenue Growth and Margin Expansion Targets?
Diamond Hill Capital, an investment management company, released its “Small Cap Fund” second-quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter of 2023, markets were positive, and the US stocks rose over 8% (as measured by the Russell 3000 Index). The portfolio outperformed Russell 2000 Index in Q2 and returned 6.34%, bringing the YTD gains to 13.05%. Financial and consumer discretionary holdings were the source of relative strength in the quarter while the relative weakness came from consumer staples holdings and below-benchmark exposure to the information technology sector. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Diamond Hill Small Cap Fund highlighted stocks like UFP Technologies, Inc. (NASDAQ:UFPT) in the second quarter 2023 investor letter. Headquartered in Newburyport, Massachusetts, UFP Technologies, Inc. (NASDAQ:UFPT) manufactures solutions for medical devices, sterile packaging, and other highly engineered custom products. On July 28, 2023, UFP Technologies, Inc. (NASDAQ:UFPT) stock closed at $191.27 per share. One-month return of UFP Technologies, Inc. (NASDAQ:UFPT) was -2.61%, and its shares gained 138.28% of their value over the last 52 weeks. UFP Technologies, Inc. (NASDAQ:UFPT) has a market capitalization of $1.456 billion.
Diamond Hill Small Cap Fund made the following comment about UFP Technologies, Inc. (NASDAQ:UFPT) in its second quarter 2023 investor letter:
“On an individual holdings’ basis, top contributors to return in Q2 included Green Brick Partners and UFP Technologies, Inc. (NASDAQ:UFPT). UFP Technologies (UFPT) is an innovative designer and custom manufacturer of components, subassemblies, products and packaging primarily for the medical market. Its medical technology business (MedTech) has become the company’s dominant business driver, now accounting for roughly 85% of revenues. As management adds capacity in lower-cost regions like the Dominican Republic, Mexico and Ireland, we expect gross margins to continue expanding. Free cash flow should also be helped as the company recently completed its new facility in Tijuana, Mexico. Combined, these developments speak to UFPT’s ability to execute on its two-pronged growth strategy, which targets 10%-15% annual revenue growth and margin expansion via organic growth and acquisitions."
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UFP Technologies, Inc. (NASDAQ:UFPT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 13 hedge fund portfolios held UFP Technologies, Inc. (NASDAQ:UFPT) at the end of first quarter which was 12 in the previous quarter.
We discussed UFP Technologies, Inc. (NASDAQ:UFPT) in another article and shared the list of best booming stocks to buy. 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.
