Merit Medical Systems (MMSI) Generated Positive Results from Margin Improvement Initiatives

Meridian Funds, managed by ArrowMark Partners, released its “Meridian Small Cap Growth Fund” first quarter 2025 investor letter.  A copy of the letter can be downloaded here. U.S. equities recorded their lowest quarterly performance since 2022, primarily due to uncertainty surrounding potential tariff policies. In this environment, the fund returned -12.21% (net) in the first quarter compared to the Russell 2000 Growth Index’s -11.12% return. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Meridian Small Cap Growth Fund highlighted stocks such as Merit Medical Systems, Inc. (NASDAQ:MMSI). Merit Medical Systems, Inc. (NASDAQ:MMSI) designs, develops, manufactures, and markets single-use medical products. The one-month return of Merit Medical Systems, Inc. (NASDAQ:MMSI) was -0.57%, and its shares gained 15.66% of their value over the last 52 weeks. On June 6, 2025, Merit Medical Systems, Inc. (NASDAQ:MMSI) stock closed at $95.28 per share with a market capitalization of $5.631 billion.

Meridian Small Cap Growth Fund stated the following regarding Merit Medical Systems, Inc. (NASDAQ:MMSI) in its Q1 2025 investor letter:

“Merit Medical Systems, Inc. (NASDAQ:MMSI) designs and markets single use medical devices globally, supporting a wide range of procedures from surgeries to biopsies. The company’s renewed emphasis on margin improvement has yielded positive results, with high single-digit revenue growth translating into stronger earnings. Recent FDA approval of a new hemodialysis device further supports a positive growth outlook heading into 2026 and 2027. We reduced our position during the quarter due to valuation following recent share price appreciation.”

A surgeon using endoscopy products to perform a medical procedure.

Merit Medical Systems, Inc. (NASDAQ:MMSI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held Merit Medical Systems, Inc. (NASDAQ:MMSI) at the end of the first quarter, which was 31 in the previous quarter. In the first quarter of 2025, Merit Medical Systems, Inc. (NASDAQ:MMSI) reported $355.4 million in revenues, up 9.8% year-over-year on a GAAP basis and up 10.9% year-over-year on a constant currency basis. While we acknowledge the potential of Merit Medical Systems, Inc. (NASDAQ:MMSI) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Merit Medical Systems, Inc. (NASDAQ:MMSI) and shared Conestoga Capital Advisors’ views on the company. In addition, please check out our hedge fund investor letters Q1 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.