On February 28, 2025, a notable transaction took place involving Intevac Inc (IVAC, Financial), a company known for its high-productivity, thin-film processing systems. Chuck Royce (Trades, Portfolio), a prominent figure in small-cap investing, executed a significant reduction in the firm's holdings of Intevac Inc shares. This transaction involved a decrease of 3,081,841 shares, executed at a price of $4.02 per share. The move resulted in a trade impact of -0.11 on the portfolio, reflecting a strategic adjustment in the firm's investment approach.

Details of the Transaction

The transaction saw Chuck Royce (Trades, Portfolio) reducing the position in Intevac Inc by 3,081,841 shares. This decision was made at a trading price of $4.02 per share, which led to a trade impact of -0.11 on the portfolio. Post-transaction, the total shares held by the firm in Intevac Inc stand at 417,792. The current position of Intevac Inc in the portfolio is 0.02, with a holding ratio of 1.54, indicating a strategic reallocation of resources within the portfolio.

Profile of Chuck Royce (Trades, Portfolio)

Charles M. Royce is a pioneer in small-cap investing, having managed the Royce Pennsylvania Mutual Fund since 1972. The firm's investment philosophy centers on smaller companies with strong balance sheets and the potential for profitable futures. The firm seeks out stocks trading below their estimated enterprise value, focusing on companies with market capitalizations up to $5 billion, and occasionally up to $10 billion. This approach is evident in the firm's top holdings, which include SEI Investments Co (SEIC, Financial), Air Lease Corp (AL, Financial), and Enovis Corp (ENOV, Financial).

Overview of Intevac Inc

Intevac Inc, based in the USA, specializes in designing and developing high-productivity, thin-film processing systems. The company operates in segments such as field service, systems, upgrades, and spare parts. With a market capitalization of $109.080 million, Intevac Inc generates the majority of its revenue from Asia, with additional contributions from the United States and Europe. The stock is currently priced at $4.015, with a GF Score of 57/100, indicating poor future performance potential.

Financial Metrics and Valuation of Intevac Inc

Intevac Inc's stock is modestly undervalued, with a GF Valuation indicating a fair value of $5.05. The company's Financial Strength is ranked 7/10, while its Profitability Rank is 3/10. The Piotroski F-Score stands at 5, and the Altman Z score is 0.92, suggesting potential financial distress. The company's Growth Rank is 2/10, with a GF Value Rank of 10/10, and a Momentum Rank of 1/10.

Impact on Chuck Royce (Trades, Portfolio)'s Portfolio

Following the transaction, Chuck Royce (Trades, Portfolio)'s total shares in Intevac Inc are 417,792. The current position of Intevac Inc in the portfolio is 0.02, with a holding ratio of 1.54. This reduction in shares highlights a strategic move in managing the portfolio, allowing the firm to reallocate resources and potentially explore other investment opportunities.

Market Performance and Historical Context

Since its IPO on November 21, 1995, Intevac Inc has experienced a price change of -35.76%. However, the stock has seen a year-to-date price change of 16.38%, reflecting recent market dynamics. Despite these fluctuations, the firm's decision to reduce its stake in Intevac Inc suggests a calculated approach to portfolio management, taking into account the company's financial metrics and valuation.

Conclusion

The reduction in shares by Chuck Royce (Trades, Portfolio) underscores a strategic move in managing the portfolio, aligning with the firm's investment philosophy of focusing on smaller companies with strong balance sheets and potential for profitable futures. Investors may consider the financial metrics and valuation of Intevac Inc when evaluating potential investment opportunities, as the company's modest undervaluation and market performance present both challenges and opportunities for future growth.

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.