Conestoga Capital Advisors, an asset management company, released its “Micro-Cap Strategy” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. Investors are optimistic about the US economy which is heading for a softer landing, and moderating inflation. In the first quarter, the strategy rose 4.93% net-of-fees but trailed the Russell Micro Cap Growth Index’s return of 6.60%. Stock selection negatively impacted the performance but was partially offset by sector allocation. Stock selection in the Industrials and healthcare sectors detracted while Financials and Telecommunications sectors contributed. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Conestoga Capital Advisors Micro-Cap Strategy highlighted stocks like Digi International Inc. (NASDAQ:DGII), in the first quarter 2024 investor letter. Digi International Inc. (NASDAQ:DGII), with a market capitalization of $942.466 million, provides business and mission-critical Internet of Things (IoT) products, services, and solutions. One-month return of Digi International Inc. (NASDAQ:DGII) was -15.30%, and its shares lost 25.46% of their value over the last 52 weeks. On May 22, 2024, Digi International Inc. (NASDAQ:DGII) stock closed at $25.91 per share.
Conestoga Capital Advisors Micro-Cap Strategy stated the following regarding Digi International Inc. (NASDAQ:DGII) in its first quarter 2024 investor letter:
“Digi International Inc. (NASDAQ:DGII): DGII provides mission-critical Internet of Things connectivity products, services, and solutions. The company reported results that were above expectations for revenue and earnings for the quarter ending December 31st. Management also reiterated guidance for its fiscal year 2024. The company experienced growth in its Annual Recurring Revenue (ARR) which drove an increase in its gross margins over the past year.”
A close-up of a cellular router being tested and debugged in a laboratory setting.
Digi International Inc. (NASDAQ:DGII) trailing 12 months revenue is $438.19 million. Year over year quarterly revenue growth rate of the company is -3.10%, and year over year quarterly earnings growth rate is -32.30%. Digi International Inc. (NASDAQ:DGII) reported record annualized recurring revenue in the first quarter 2024.
Digi International Inc. (NASDAQ:DGII) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 11 hedge fund portfolios held Digi International Inc. (NASDAQ:DGII) at the end of the first quarter which was 20 in the previous quarter.
In another article, we discussed Digi International Inc. (NASDAQ:DGII) and shared Conestoga Capital Advisors’ views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q1 2024 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.
