Is Transcat, Inc. (TRNS) A Smart Long-Term Buy?

Wasatch Global Investors, an investment management firm, published its “Wasatch Micro Cap Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. The Wasatch Micro Cap Fund—Investor Class slipped -0.44% for the fourth quarter. The benchmark Russell Microcap® Index posted a larger decline of -2.66%, while small, mid, and large-cap benchmarks generally posted gains for the same period. With risk aversion and uncertainty elevated, cautious investors sought the perceived safety of larger companies. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Wasatch Micro Cap Fund, in its Q4 2021 investor letter, mentioned Transcat, Inc. (NASDAQ: TRNS) and discussed its stance on the firm. Transcat, Inc. is a Rochester, New York-based industrial process instruments manufacturer company with a $592 million market capitalization. TRNS delivered a -14.84% return since the beginning of the year, while its 12-month returns are up by 72.99%. The stock closed at $78.71 per share on March 03, 2022.

Here is what Wasatch Micro Cap Fund has to say about Transcat, Inc. in its Q4 2021 investor letter:

“The largest contributor to Fund performance for the quarter was Transcat, Inc. (TRNS). Through its services segment, Transcat provides calibration and laboratory instrument services in the U.S. and other countries. The company’s distribution segment sells and rents instruments for customers’ test and measurement needs. Transcat’s stock price rose sharply in November after revenues and earnings in the company’s most recent quarter topped expectations. Management cited grossmargin expansion in the services segment, driven by operating leverage on fixed costs from organic growth. Revenues in the distribution segment grew 22.2%, rebounding from a prior-year period that was negatively impacted by the Covid-19 pandemic.”

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Our calculations show that Transcat, Inc. (NASDAQ: TRNS) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. TRNS was in 8 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 8 funds in the previous quarter. Transcat, Inc. (NASDAQ: TRNS) delivered a -12.58% return in the past 3 months.

In October 2021, we also shared another hedge fund’s views on TRNS in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

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