Introduction to the Transaction
On December 31, 2023, Chuck Royce (Trades, Portfolio)'s investment firm made a notable addition to its investment portfolio by acquiring 702,949 shares of inTest Corp (INTT, Financial), a leading provider of test and process solutions. This transaction reflects the firm's continued confidence in the company and its strategic approach to value investing, particularly within the small-cap market space.
Guru Profile: Chuck Royce (Trades, Portfolio)
Charles M. Royce, a venerated figure in the investment community, has been at the helm of Royce Pennsylvania Mutual Fund since 1972. With a focus on small-cap companies, the firm's investment philosophy is grounded in identifying undervalued stocks with strong balance sheets, a history of success, and promising futures. The firm's top holdings include FormFactor Inc (FORM, Financial), Ziff Davis Inc (ZD, Financial), and Air Lease Corp (AL, Financial), showcasing a preference for Industrials and Technology sectors within its $9.82 billion equity portfolio.
inTest Corp Company Overview
inTest Corp, with its business inception dating back to June 17, 1997, operates in the semiconductor industry, providing critical test and process solutions across various markets. The company's segments include Electronic Test, Environmental Technologies, and Process Technologies. With a market capitalization of $151.509 million, inTest Corp has demonstrated a historical performance that has garnered investor interest.
Transaction Details
The recent transaction saw a 61.17% increase in Chuck Royce (Trades, Portfolio)'s holdings in inTest Corp, with an additional 266,796 shares at a trade price of $13.60. This trade impacted the firm's portfolio by 0.04% and increased its position in the company to 5.78%. Currently, the stock's price stands at $12.4586, which is modestly undervalued according to the GF Value of $17.44, indicating a potential margin of safety for investors.
inTest Corp's Financial Health and Market Performance
inTest Corp's financial health is robust, with a Financial Strength rank of 9/10 and a Profitability Rank of 8/10. The company's GF Score of 85/100 suggests a strong potential for outperformance. Additionally, inTest Corp's Piotroski F-Score of 7 and Altman Z score of 4.58 further affirm its financial stability.
Sector and Market Context
Chuck Royce (Trades, Portfolio)'s investment firm has a history of strategic investments in the Industrials and Technology sectors, with inTest Corp fitting well within this narrative. The company's standing in the Semiconductors industry is solid, and its recent performance metrics, including a PE Percentage of 12.10, reflect a company that is managing to maintain profitability in a competitive market.
Comparative Analysis
When compared to its industry peers, inTest Corp stands out with its strong Growth Rank and GF Value Rank. The largest guru shareholder of inTest Corp is First Eagle Investment (Trades, Portfolio) Management, LLC, although the specific share percentage is not disclosed.
Conclusion
The recent acquisition by Chuck Royce (Trades, Portfolio)'s firm is a strategic move that aligns with its investment philosophy of targeting undervalued small-cap companies with strong prospects. inTest Corp's current market position and financial health suggest it could be a valuable addition to a value investor's portfolio. The transaction's influence on both the stock and the firm's portfolio will be closely monitored by investors seeking to capitalize on similar value investment opportunities.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
