Conestoga Capital Advisors’ Views on Hillman Solutions Corp. (HLMN)

Conestoga Capital Advisors, an asset management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter began with a historically poor start but gained momentum later as tariff fears subsided and market volatility dropped precipitously. Conestoga Micro Cap Composite appreciated 15.65% net-of-fees in the second quarter but underperformed the Russell Microcap Growth Index’s 20.92% return. In a highly volatile market led by high-beta and lower-quality stocks, the firm does not expect the fund to align with index performance. Please review the fund’s top 5 holdings to gain insight into their key selections for 2025.

In its second quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks such as Hillman Solutions Corp. (NASDAQ:HLMN). Hillman Solutions Corp. (NASDAQ:HLMN) offers hardware-related products and related merchandising services. The one-month return of Hillman Solutions Corp. (NASDAQ:HLMN) was 13.03%, and its shares lost 18.81% of their value over the last 52 weeks. On July 25, 2025, Hillman Solutions Corp. (NASDAQ:HLMN) stock closed at $8.07 per share, with a market capitalization of $1.594 billion.

Conestoga Capital Advisors stated the following regarding Hillman Solutions Corp. (NASDAQ:HLMN) in its second quarter 2025 investor letter:

“Hillman Solutions Corp. (NASDAQ:HLMN) is the leading distributor of hardware, home improvement products, and robotic kiosk technologies to a broad range of retailers. Hillman leverages its 1,100-person direct sales force to manage over 114,000 SKU’s for 42,000 retail locations. HLMN reported inline 1Q results but highlighted the potential for $250 million in additional costs if liberation day tariff levels were enacted. While the company feels comfortable it can raise prices dollar-for dollar, this would still impact gross margins by 300 bps annually.”

Is Hillman Solutions Corp. (HLMN) The Most Undervalued Stock With Smart Money Ratings?

Workers in protective clothing assembling hardware products on a production line.

Hillman Solutions Corp. (NASDAQ:HLMN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 21 hedge fund portfolios held Hillman Solutions Corp. (NASDAQ:HLMN) at the end of the first quarter compared to 24 in the previous quarter. In the first quarter of 2025, Hillman Solutions Corp. (NASDAQ:HLMN) reported net sales of $359.3 million, reflecting a 2.6% increase compared to the first quarter of 2024. While we acknowledge the risk and potential of Hillman Solutions Corp. (NASDAQ:HLMN) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Hillman Solutions Corp. (NASDAQ:HLMN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Hillman Solutions Corp. (NASDAQ:HLMN) and shared the list of most undervalued stocks with smart money ratings. In addition, please check out our hedge fund investor letters Q2 2025 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.