On June 30, 2025, Chuck Royce (Trades, Portfolio) executed a substantial reduction in the holdings of Faro Technologies Inc (FARO, Financial). The transaction involved a decrease of 1,053,040 shares, representing a 99.97% reduction in the position. This move left the firm with a negligible position of only 289 shares in the company. The transaction was executed at a trade price of $43.92 per share, resulting in a -0.5% impact on the firm's portfolio. This significant reduction indicates a strategic shift in the firm's investment approach towards Faro Technologies.
Chuck Royce (Trades, Portfolio): A Pioneer in Small-Cap Investing
Charles M. Royce is renowned as a pioneer in small-cap investing, having managed the Royce Pennsylvania Mutual Fund since 1972. The firm's investment philosophy centers on identifying smaller companies with strong balance sheets, a proven track record of success, and the potential for future profitability. The firm typically invests in companies with market capitalizations up to $5 billion, although some funds may extend to $10 billion. The firm's top holdings include SEI Investments Co (SEIC, Financial), Assured Guaranty Ltd (AGO, Financial), Air Lease Corp (AL, Financial), Enovis Corp (ENOV, Financial), and Arcosa Inc (ACA, Financial), with a total equity of $9.23 billion.
Faro Technologies Inc: A Leader in 3D Measurement Solutions
Faro Technologies Inc is a USA-based technology company specializing in 3D measurement and imaging solutions. The company serves various markets, including 3D metrology, architecture, engineering, construction, and public safety analytics. Faro Technologies enables its customers to capture, measure, manipulate, and share 3D and 2D data from the physical world in a virtual environment. The company's suite of 3D products and software solutions is used for the inspection of components and assemblies, rapid prototyping, reverse engineering, and construction documentation.
Financial Metrics and Valuation of Faro Technologies
Faro Technologies currently has a market capitalization of approximately $849.75 million, with a stock price of $43.99. The stock is considered significantly overvalued, with a GF Value of $20.97 and a Price to GF Value ratio of 2.10. The company's GF Score is 58/100, indicating poor future performance potential. Despite a 68.93% year-to-date price change and a 170.71% increase since its IPO, the company's financial metrics suggest caution for potential investors.
Performance and Growth Indicators
Faro Technologies has shown mixed performance and growth indicators. The company's Financial Strength is ranked 7/10, while its Profitability Rank is 4/10. The Growth Rank is 2/10, and the GF Value Rank is 1/10. The company's interest coverage is 4.37, and the Altman Z score is 3.23, indicating moderate financial health. The Piotroski F-Score is 5, suggesting average financial strength.
Impact of the Transaction on Chuck Royce (Trades, Portfolio)'s Portfolio
The reduction in Faro Technologies shares had a -0.5% impact on the firm's portfolio. Post-transaction, the position in Faro Technologies is negligible, with only 289 shares remaining. This move aligns with the firm's strategy of focusing on companies with strong fundamentals and potential for future growth. The decision to reduce holdings in Faro Technologies may reflect concerns about the company's valuation and future performance potential.
Other Gurus Involved with Faro Technologies
Fisher Asset Management, LLC holds the largest share percentage of Faro Technologies, indicating continued interest in the company from other investment firms. Keeley-Teton Advisors, LLC (Trades, Portfolio) is also among the firms holding shares in the company. These holdings suggest that while Chuck Royce (Trades, Portfolio) has significantly reduced the position, other investment firms still see potential in Faro Technologies.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
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