On March 31, 2025, Chuck Royce (Trades, Portfolio) executed a significant reduction in holdings of Faro Technologies Inc. The transaction involved a decrease of 287,910 shares, representing a 21.47% change in the position. This move reflects a strategic decision by the firm to adjust its investment in the company, which specializes in 3D measurement and imaging solutions. The shares were traded at a price of $27.30, impacting the firm's portfolio by -0.07%. Post-transaction, the firm holds 1,053,329 shares, which constitute 0.27% of the portfolio and 5.55% of the company's total shares.

Profile of Chuck Royce (Trades, Portfolio)

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 focuses on smaller companies with strong balance sheets, a record of success, and potential for profitability. Royce's approach is to identify stocks trading below their estimated enterprise value, seeking opportunities in companies with market capitalizations up to $5 billion, and occasionally up to $10 billion. The firm's top holdings include SEI Investments Co (SEIC, Financial), Air Lease Corp (AL, Financial), Enovis Corp (ENOV, Financial), Kennedy-Wilson Holdings Inc (KW, Financial), and Arcosa Inc (ACA, Financial).

Overview of Faro Technologies Inc.

Faro Technologies Inc., based in the USA, is a technology company that designs, develops, and supports software-driven, three-dimensional (3D) measurement and imaging solutions. These solutions serve various industries, including 3D metrology, architecture, engineering, construction, operations and maintenance, and public safety analytics. The company has a market capitalization of $808.527 million and is considered significantly overvalued with a GF Value of 21.39. The current stock price is $42.045, with a Price to GF Value ratio of 1.97, indicating a substantial overvaluation.

Financial Metrics and Valuation of Faro Technologies

Faro Technologies' stock is currently priced at $42.045, with a PE percentage of 0.00, indicating a loss. The company's GF Score is 60/100, suggesting poor future performance potential. The stock's GF Value Rank is 1/10, further emphasizing its overvaluation. Despite these challenges, the company has shown a 54.01% gain since the transaction and a 61.46% year-to-date price change. However, its growth profile is mixed, with a 52.70% EBITDA growth over three years but a negative revenue growth of -1.30%.

Performance and Growth Indicators

Faro Technologies has demonstrated a mixed performance in recent years. The company's Growth Rank is 2/10, reflecting challenges in sustaining consistent growth. The Profitability Rank is 4/10, indicating moderate profitability issues. The Financial Strength is rated 7/10, suggesting a relatively stable balance sheet. The Piotroski F-Score is 5, and the Altman Z score is 2.61, indicating moderate financial health.

Largest and Other Gurus Holding Faro Technologies

Fisher Asset Management, LLC is the largest holder of Faro Technologies shares, showcasing confidence in the company's potential. Other notable holders include Keeley-Teton Advisors, LLC (Trades, Portfolio), which also maintains a stake in the company. These holdings reflect a continued interest in Faro Technologies despite its current valuation challenges.

Transaction Analysis

The reduction in Chuck Royce (Trades, Portfolio)'s holdings of Faro Technologies Inc. reflects a strategic portfolio adjustment. The transaction's impact on the firm's portfolio was minimal at -0.07%, yet it signifies a reevaluation of the company's future prospects. Despite the stock's significant overvaluation, its recent price gains and year-to-date performance may offer potential opportunities for other investors. However, the firm's decision to reduce its stake suggests caution regarding the company's long-term growth and profitability potential.

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.