Is SmartRent (SMRT) A Smart Long-Term Buy?

Vulcan Value Partners, an investment management firm, published its “Large Cap, Small Cap, Focus Composite, Focus Plus Composite, and All Cap Composite” third quarter 2021 investor letter – a copy of which can be downloaded here. Vulcan’s Large Cap Composite Fund delivered a 0.1% net return for the third quarter of 2021, 11.8% for the Small Cap, -0.9% for the Focus  Composite Fund, -0.9% return was delivered by the Focus Plus Composite Fund,  and 3.4% was gained by the All Cap Composite Fund for the same period. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Vulcan Value Partners, in its Q3 2021 investor letter, mentioned SmartRent, Inc. (NASDAQ: SMRT) and discussed its stance on the firm. SmartRent, Inc. is a Scottsdale, Arizona-based smart home automation company with a $1.9 billion market capitalization. SMRT delivered a -24.11%  for the past month and it closed at $9.85 per share on November 25, 2021.

Here is what Vulcan Value Partners has to say about SmartRent, Inc.  in its Q3 2021 investor letter:

“We purchased SmartRent Inc. during the quarter. The company provides building operators with hardware and software solutions for smart apartments. The software is used by multifamily apartment developers and owners to provide capabilities including access control, energy management, self-guided tours, parking management, and leak detection. Renters can access a subscription-based app to manage access control and all connected devices inside their apartment. Owners experience lower operating costs and increased revenue from the renter’s subscription which improves property
values. Its committed customer base includes many of the top multifamily operators across the country.”

Based on our calculations, SmartRent, Inc. (NASDAQ: SMRT) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. SMRT was in 15 hedge fund portfolios at the end of the third quarter of 2021, compared to 0 funds in the previous quarter. SmartRent, Inc. (NASDAQ: SMRT) delivered a -17.50% return in the past 3 months.

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