Summers Value Partners: “Our Price Target on UTMD is $120 per Share”

Summers Value Partners, an investment management firm, published its “Summers Value Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. The Summers Value Fund LP (“the Fund”) returned 43.4% net for the full year 2021, outpacing the Russell 2000 Index ETF return of 13.7% and the Russell Micro-Cap Index ETF return of 17.8%. In the fourth quarter, the Fund returned 8.0% net1 relative to the Russell 2000 Index ETF return of 1.9% and the Russell Micro-Cap Index ETF return of -3.2%. The Fund has generated a cumulative 77.7% net1 return since inception compared to the Russell 2000 Index ETF return of 36.2% and the Russell Micro-Cap Index ETF return of 32.9% over the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Summers Value Partners, in its Q4 2021 investor letter, mentioned Utah Medical Products, Inc. (NASDAQ: UTMD) and discussed its stance on the firm. Utah Medical Products, Inc. is a Midvale, Utah-based manufacturing company with a $331.6 million market capitalization. UTMD delivered a -11.50% return since the beginning of the year, while its 12-month returns are up by -4.76%. The stock closed at $88.50 per share on February 3, 2022.

Here is what Summers Value Partners has to say about Utah Medical Products, Inc. in its Q4 2021 investor letter:

Utah Medical (UTMD) – $320 million market cap

In late December, Utah Medical paid a $2 per share special dividend. Utah Medical is a multi-national manufacturer and marketer of medical device products based in Midvale, Utah. We have owned the stock for the past eighteen months. The company features an industry-leading operating margin of almost 40%, a fortress-like balance sheet, and a long-tenured and skilled management team. The stock trades at an 8% free cash flow yield to enterprise value, which we view as modest for such a high-quality asset. We expect the company to generate $22 million of free cash flow in 2022 (almost $6.00 per share) and end the year with $80 million of cash and zero debt. Our price target on UTMD is $120 per share.”

Our calculations show that Utah Medical Products, Inc. (NASDAQ: UTMD) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. UTMD was in 4 hedge fund portfolios at the end of the third quarter of 2021, compared to 4 funds in the previous quarter. Utah Medical Products, Inc. (NASDAQ: UTMD) delivered a -12.81% return in the past 3 months.

In August 2021, we also shared another hedge fund’s views on UTMD 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.