Teleflex (TFX) Fell on Spin-Off Announcements

Diamond Hill Capital, an investment management company, released its “Mid Cap Strategy” investor letter for the first quarter of 2025. A copy of the letter can be downloaded here. The first quarter of 2025 was mixed due to a flurry of activity from the new presidential administration. However, the strategy outperformed the Russell Midcap Index in Q1, returning -1.26% (net) vs -3.40% for the index. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2025.

In its first-quarter 2025 investor letter, Diamond Hill Mid Cap Strategy highlighted stocks such as Teleflex Incorporated (NYSE:TFX). Teleflex Incorporated (NYSE:TFX) engages in the development and manufacturing of single-use medical devices for diagnostic and therapeutic procedures. The one-month return of Teleflex Incorporated (NYSE:TFX) was -2.12%, and its shares lost 42.39% of their value over the last 52 weeks. On June 5, 2025, Teleflex Incorporated (NYSE:TFX) stock closed at $122.46 per share with a market capitalization of $5.411 billion.

Diamond Hill Mid Cap Strategy stated the following regarding Teleflex Incorporated (NYSE:TFX) in its Q1 2025 investor letter:

“Other bottom individual contributors in Q1 included Ciena, Teleflex Incorporated (NYSE:TFX) and Ashland. Teleflex, which designs, develops, manufactures and supplies single use medical devices for common critical care and surgical diagnostic and therapeutic procedures, declined following its announcement that it would spin off some of its underperforming businesses.”

Why Teleflex Inc. (TFX) Went Down On Friday?

A doctor in their office, consulting with a patient about the benefits of the company’s interventional urology products.

Teleflex Incorporated (NYSE:TFX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held Teleflex Incorporated (NYSE:TFX) at the end of the first quarter, which was 36 in the previous quarter. Teleflex Incorporated (NYSE:TFX) reported revenues were $700.7 million in Q1 2025, which was down 5% year-over-year. While we acknowledge the potential of Teleflex Incorporated (NYSE:TFX) 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 Teleflex Incorporated (NYSE:TFX) and shared the list of oversold value stocks to buy according to hedge funds. Diamond Hill Mid Cap Strategy initiated a position in Teleflex Incorporated (NYSE:TFX) during Q4 2024. 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.