Here’s Why Conestoga Capital Advisors Sold Semler Scientific (SMLR) - InvestingChannel

Here’s Why Conestoga Capital Advisors Sold Semler Scientific (SMLR)

Conestoga Capital Advisors, an asset management company, released its “Micro-Cap Strategy” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. Investors are optimistic about the US economy which is heading for a softer landing, and moderating inflation. In the first quarter, the strategy rose 4.93% net-of-fees but trailed the Russell Micro Cap Growth Index’s return of 6.60%. Stock selection negatively impacted the performance but was partially offset by sector allocation. Stock selection in the Industrials and healthcare sectors detracted while Financials and Telecommunications sectors contributed. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Conestoga Capital Advisors Micro-Cap Strategy highlighted stocks like Semler Scientific, Inc. (NASDAQ:SMLR), in the first quarter 2024 investor letter. Semler Scientific, Inc. (NASDAQ:SMLR), with a market capitalization of $164.987 million, offers technology solutions to enhance healthcare’s clinical effectiveness and efficiency. One-month return of Semler Scientific, Inc. (NASDAQ:SMLR) was -9.88%, and its shares lost 16.22% of their value over the last 52 weeks. On May 22, 2024, Semler Scientific, Inc. (NASDAQ:SMLR) stock closed at $23.35 per share.

Conestoga Capital Advisors Micro-Cap Strategy stated the following regarding Semler Scientific, Inc. (NASDAQ:SMLR) in its first quarter 2024 investor letter:

“Semler Scientific, Inc. (NASDAQ:SMLR): SMLR’s core product, QuantaFlo, measures arterial blood flow to aid in the diagnosis of peripheral arterial disease (PAD). Diagnosing PAD early can prevent strokes, heart attacks, and other negative outcomes. In February 2023, the Center for Medicare and Medicaid Services (CMS) announced a surprise decision to eliminate reimbursement for the preventative testing of PAD. We continued to hold SMLR as the plan was phased in over three years and we remained confident that the clinical benefit would take precedent to the rate cuts. During SMLR’s fourth quarter call, they did not issue full year guidance and commented visibility had been reduced due to the CDC’s ruling. With the lack of visibility and un-knowns regarding reimbursement, we decided there were better uses of capital.”

A doctor in focus surrounded by colleagues in a hospital setting.

Semler Scientific, Inc. (NASDAQ:SMLR) trailing 12 months revenue is $65.88 million. As per the recent earnings call, Semler Scientific, Inc. (NASDAQ:SMLR) generated $15.9 million in revenues in the first quarter, a 13% decrease compared to 2023 Q1.

Semler Scientific, Inc. (NASDAQ:SMLR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 11 hedge fund portfolios held Semler Scientific, Inc. (NASDAQ:SMLR) at the end of the first quarter which was 12 in the previous quarter.

In another article, we discussed Semler Scientific, Inc. (NASDAQ:SMLR) and shared Conestoga Capital Advisors’ views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.

If you are looking for an AI stock that is as promising as Microsoft but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

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

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