Yahoo Finance AtriCure (ATRC) Stock Slipped on Competition Threat
TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the quarter the fund returned 5.77% (net), compared to a 7.58% return for the Russell 2000 Growth Index. Despite a decline in many equity markets in January, they rebounded over the following two months, resulting in a robust 2024 first quarter. In addition, please check the fund’s top five holdings to know its best picks in 2024.
TimesSquare Capital U.S. Small Cap Growth Strategy highlighted stocks like AtriCure, Inc. (NASDAQ:ATRC), in the first quarter 2024 investor letter. AtriCure, Inc. (NASDAQ:ATRC) develops devices for surgical ablation of cardiac tissue, exclusion of the left atrial appendage, and temporarily blocking pain by ablating peripheral nerves to medical centers. The one-month return of AtriCure, Inc. (NASDAQ:ATRC) was 2.48%, and its shares lost 50.36% of their value over the last 52 weeks. On June 20, 2024, AtriCure, Inc. (NASDAQ:ATRC) stock closed at $23.76 per share with a market capitalization of $1.15 billion.
TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding AtriCure, Inc. (NASDAQ:ATRC) in its first quarter 2024 investor letter:
"Our preferences among Health Care stocks are those companies providing novel therapies for unmet needs that deserve premium pricing, or specialized service providers. AtriCure, Inc. (NASDAQ:ATRC) develops and manufactures devices for the surgical ablation of cardiac tissue. Fourth quarter revenues outpaced the consensus with broad-based strength across geographies. Despite these positives, the stock declined -15% on news that another company had launched a product to compete against its AtriClip device; that consideration led to us decrease the position."
A medical technician holding a modern ablation device in a hospital operating theatre.
AtriCure, Inc. (NASDAQ:ATRC) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held AtriCure, Inc. (NASDAQ:ATRC) at the end of the first quarter which was 22 in the previous quarter. In the first quarter, AtriCure, Inc. (NASDAQ:ATRC) reported total revenue of $109 million, representing 16% increase from Q1 2023. While we acknowledge the potential of AtriCure, Inc. (NASDAQ:ATRC) 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 cheapest AI stock.
In the previous quarter, TimesSquare Capital U.S. Small Cap Growth Strategy commented on AtriCure, Inc. (NASDAQ:ATRC) that the stock declined by 19% due to concerns over anti-obesity drugs. In addition, please check out our hedge fund investor letters Q1 2024 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.
