Is Kornit Digital (KRNT) Still a Worthy Investment Choice?

Baron Funds, an asset management firm, published its “Baron Discovery Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. In what turned out to be a challenging first quarter, Baron Discovery Fund (the “Fund”) decreased 16.30% (Institutional Shares), which was 3.67% below the Russell 2000 Growth Index (the “Benchmark”). Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Baron Discovery Fund mentioned Kornit Digital Ltd. (NASDAQ:KRNT) and explained its insights for the company. Founded in 2002, Kornit Digital Ltd. (NASDAQ:KRNT) is a Rosh Haayin, Israel-based international manufacturing company with a $1.6 billion market capitalization. Kornit Digital Ltd. (NASDAQ:KRNT) delivered a -77.70% return since the beginning of the year, while its 12-month returns are down by -70.93%%. The stock closed at $33.95 per share on June 14, 2022.

Here is what Baron Discovery Fund has to say about Kornit Digital Ltd. (NASDAQ:KRNT) in its Q1 2022 investor letter:

“Shares of Kornit Digital Ltd. (NASDAQ:KRNT) fell during the quarter. Kornit develops, designs, and markets digital printing solutions for the global textile industry including direct-to-garment and roll-to-roll solutions. The stock fell as valuation multiples for growth stocks contracted meaningfully during the quarter, and the stock is expensive based on near-term metrics. Despite the valuation contraction, the company continues to report strong financial results and is more confident than ever in its medium- and longer-term outlook with new products launching this year. We believe Kornit will continue to gain incremental share of the massive global textile market as each new product addresses additional market segments.”

Photo by Bank Phrom on Unsplash

Our calculations show that Kornit Digital Ltd. (NASDAQ:KRNT) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Kornit Digital Ltd. (NASDAQ:KRNT) was in 19 hedge fund portfolios at the end of the first quarter of 2022, compared to 17 funds in the previous quarter. Kornit Digital Ltd. (NASDAQ:KRNT) delivered a -54.13% return in the past 3 months.

In September 2021, we also shared another hedge fund’s views on Kornit Digital Ltd. (NASDAQ:KRNT) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.