Should You Sell Omnicell (OMCL)?

Renaissance Investment Management, an investment management company, released its “Small Cap Growth Strategy” fourth-quarter investor letter. A copy of the same can be downloaded here. In the fourth quarter, the strategy returned 1.39% (net) compared to a 4.13% return for the Russell 2000 Growth Index and a 6.98% return for the S&P/Barra Small Cap 600 Growth. The strategy returned -20.41% in 2022 compared to indexes’ return of -26.36% and -21.08% respectively. Energy and Consumer Staples were the best-performing sectors in the quarter, while Health Care and Communication Services sectors detracted. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Renaissance Small Cap Growth Strategy highlighted stocks like Omnicell, Inc. (NASDAQ:OMCL) in the Q4 2022 investor letter. Headquartered in Santa Clara, California, Omnicell, Inc. (NASDAQ:OMCL) is a medication management solutions and adherence tools provider for healthcare systems. On April 4, 2023, Omnicell, Inc. (NASDAQ:OMCL) stock closed at $58.46 per share. One-month return of Omnicell, Inc. (NASDAQ:OMCL) was 4.71%, and its shares lost 53.70% of their value over the last 52 weeks. Omnicell, Inc. (NASDAQ:OMCL) has a market capitalization of $2.63 billion.

Renaissance Small Cap Growth Strategy made the following comment about Omnicell, Inc. (NASDAQ:OMCL) in its Q4 2022 investor letter:

“We sold our shares of Omnicell, Inc. (NASDAQ:OMCL) as the company experienced health system budget freezes for its solutions, leading the company to lower its revenue expectations for the year. In addition, the company saw bookings decline, which will impact its revenues in 2023. Due to the changes in outlook, we lost confidence in the company’s ability to achieve its financial targets and exited the stock.”

Source: Unsplash

Omnicell, Inc. (NASDAQ:OMCL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Omnicell, Inc. (NASDAQ:OMCL) at the end of the fourth quarter which was 23 in the previous quarter.

We discussed Omnicell, Inc. (NASDAQ:OMCL) in another article and shared The Brown Capital Management Mid Company Fund’s views on the company. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.

Suggested Articles:

• 15 Best Low Priced Stocks to Buy Now
• 12 Best Growth Stocks to Buy for the Next 5 Years
• 14 Cheap Quarterly Dividend Stocks to Buy

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