Is IPG Photonics Stock a Buy as One Fund Builds a $9 Million Stake in the Firm?

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Jonathan Ponciano, The Motley Fool

Fri, December 19, 2025 astatine 10:50 AM CST 5 min read

New York City-based S Squared Technology accrued its presumption successful IPG Photonics Corporation by 45,050 shares successful the 3rd quarter.
The wide worth of the presumption roseate by astir $4.4 cardinal from the erstwhile period.
At quarter-end, S Squared reported holding 118,916 IPGP shares valued astatine $9.4 million.
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New York City-based S Squared Technology disclosed a bargain of IPG Photonics Corporation (NASDAQ:IPGP), adding 45,050 shares, with a nett presumption alteration of astir $4.4 million, successful a November 13 SEC filing.

According to an SEC filing released connected November 13, S Squared Technology accrued its holding successful IPG Photonics Corporation (NASDAQ:IPGP) during the astir caller quarter. The money added astir 45,050 shares, bringing its full to 118,916 shares, and the reported worth of the presumption grew by astir $4.4 cardinal to $9.4 cardinal arsenic of September 30.

The IPG Photonics involvement represents astir 3.6% of 13F reportable AUM.

Top holdings aft the filing:

NASDAQ: LSCC: $25.4 cardinal (9.7% of AUM)
NASDAQ: KRYS: $19.3 cardinal (7.3% of AUM)
NASDAQ: SYM: $18.9 cardinal (7.2% of AUM)
NASDAQ: KTOS: $18.2 cardinal (6.9% of AUM)
NYSE: PRLB: $15.6 cardinal (5.9% of AUM)

As of Friday, shares of IPG Photonics were priced astatine $76.34, up astir 2.5% implicit the past twelvemonth and good underperforming the S&P 500, which is up 16% successful the aforesaid period.

Metric

Value

Price (as of Friday)	$76.34
Market Capitalization	$3.2 billion
Revenue (TTM)	$963.6 million
Net Income (TTM)	$25.6 million

IPG Photonics offers high-performance fibre lasers, amplifiers, diode lasers, and integrated laser systems chiefly for materials processing, communications, and precocious applications.
The institution generates gross by designing, manufacturing, and selling laser and photonics solutions to archetypal instrumentality manufacturers, strategy integrators, and extremity users worldwide.
It targets industrial, telecommunications, and information halfway customers, with a absorption connected sectors requiring precision laser processing and optical networking equipment.

IPG Photonics Corporation is simply a starring supplier of high-performance fibre laser technology, serving planetary concern and communications markets.

S Squared's determination should beryllium absorbing to semipermanent investors due to the fact that it reflects condemnation astatine a infinitesimal erstwhile sentiment astir concern exertion remains a spot fragile, peculiarly for a steadfast whose banal has struggled for a while. IPG Photonics has spent respective years navigating cyclical demand, restructuring costs, and capitalist skepticism, leaving shares down astir 70% from early-pandemic levels. Yet the company’s latest results suggest the worst whitethorn beryllium down it.

In the 3rd quarter, IPG reported gross of $250.8 million, up 8% twelvemonth implicit year, alongside a crisp betterment successful profitability. Gross borderline improved to 39.5%, and the institution returned to GAAP profitability with nett income of $7.5 million, compared with a important nonaccomplishment a twelvemonth earlier. Meanwhile, adjusted EBITDA roseate to $37 million, supported by stronger materials processing request and improving outgo absorption. Management besides highlighted a book-to-bill ratio adjacent one, signaling unchangeable end-market conditions heading into the 4th quarter.

Within S Squared's portfolio, IPG sits alongside different exertion and defense-oriented holdings, suggesting this isn't a speculative commercialized but a stake connected operational leverage and a cyclical recovery. Ultimately, the company's equilibrium expanse strength, improving margins, and vulnerability to automation and precocious manufacturing could connection upside for diligent investors.