Wasatch Micro-Cap Fund’s Updates on Pennant Group (PNTG)

Wasatch Global Investors, an asset management company, released its “Wasatch Micro-Cap Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Microcap stocks reported strong results in the quarter, due to the consistent risk appetite of investors. The fund—Investor Class returned 9.52% in the quarter but lagged the benchmark Russell Microcap® Growth Index’s 19.93% return. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Wasatch Micro-Cap Fund highlighted stocks such as The Pennant Group, Inc. (NASDAQ:PNTG). The Pennant Group, Inc. (NASDAQ:PNTG) is a US-based healthcare services provider. The one-month return of The Pennant Group, Inc. (NASDAQ:PNTG) was 13.43%, and its shares gained 7.66% of their value over the last 52 weeks. On December 17, 2025, The Pennant Group, Inc. (NASDAQ:PNTG) stock closed at $29.39 per share, with a market capitalization of $1.017 billion.

Wasatch Micro-Cap Fund stated the following regarding The Pennant Group, Inc. (NASDAQ:PNTG) in its third quarter 2025 investor letter:

“The Pennant Group, Inc. (NASDAQ:PNTG) owns a network of senior-living facilities, home-health agencies and hospice service providers located primarily across the western, southwestern and midwestern U.S. Pennant has successfully focused on purchasing underutilized assets and subsequently driving patient volumes higher. Each provider operates independently while benefiting from shared services in areas such as payroll, human resources and legal. Sentiment with respect to the stock suffered in the quarter from concerns around initial proposed reimbursement rates for services under Medicare that were lower than expected. We expect the final rate structure will be more favorable and could support a recovery in the stock. (Current and future holdings are subject to risk and change.)”

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The Pennant Group, Inc. (NASDAQ:PNTG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held The Pennant Group, Inc. (NASDAQ:PNTG) at the end of the third quarter, which was 27 in the previous quarter. In Q3 2025, The Pennant Group, Inc. (NASDAQ:PNTG) reported revenue of $229 million, an increase of $48.4 million or 26.8% from Q3 2024. While we acknowledge the risk and potential of The Pennant Group, Inc. (NASDAQ:PNTG) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than The Pennant Group, Inc. (NASDAQ:PNTG) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In addition, please check out our hedge fund investor letters Q3 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.