Model N (MODN) Declined in Q1 on Profit Taking

Conestoga Capital Advisors, an asset management company, released its “Small Cap Strategy” first-quarter 2023 investor letter. A copy of the same can be downloaded here. The Small Cap Composite rose 12.26% net of fees in the first quarter, compared to the Russell 2000 Growth Index’s 6.07% return. In addition to positive stock selection, rebound by many of the higher-growth stocks, which detracted in 2022, and an underweight exposure to the weakest performing sectors of the Index benefitted the strategy in Q1. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Conestoga Small Cap Strategy highlighted stocks like Model N, Inc. (NYSE:MODN) in the first quarter 2023 investor letter. Headquartered in San Mateo, California, Model N, Inc. (NYSE:MODN) provides revenue management cloud solutions for the life science and technology industries. On May 23, 2023, Model N, Inc. (NYSE:MODN) stock closed at $29.03 per share. One-month return of Model N, Inc. (NYSE:MODN) was -9.70%, and its shares gained 29.95% of their value over the last 52 weeks. Model N, Inc. (NYSE:MODN) has a market capitalization of $1.106 billion.

Conestoga Small Cap Strategy made the following comment about Model N, Inc. (NYSE:MODN) in its Q1 2023 investor letter:

Model N, Inc. (NYSE:MODN): MODN optimizes revenue and compliance for life sciences and high-tech innovators. After being a leader during the fourth quarter, MODN gave back some of its 2022 gains during the first quarter. MODN reported robust fourth quarter results with ARR accelerating to 36% growth, net revenue retention hitting a high of 134% and billings jumping 23%. Despite better-than-expected results, the stock sold off 13% on the earnings report and didn’t recover during the balance of the quarter. We believe the sell-off was related to profit taking and/or future guidance not being raised more aggressively.”

Model N, Inc. (NYSE:MODN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held Model N, Inc. (NYSE:MODN) at the end of first quarter 2023 which was 20 in the previous quarter.

We discussed Model N, Inc. (NYSE:MODN) in another article and shared Renaissance Investment Management’s views on the company. In addition, please check out our hedge fund investor letters Q1 2023 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.