Why a $5 Million Bet on Azenta Could Pay Off After a 70% Stock Slide

1 hour ago 1

Jonathan Ponciano, The Motley Fool

Mon, December 8, 2025 astatine 4:20 AM CST 5 min read

Dallas-based Meros Investment Management purchased 159,945 shares of Azenta valued astatine $4.6 cardinal successful the 3rd quarter.
The presumption represents 2% of Meros’s 13F reportable assets nether management.
The determination marked a caller presumption for Meros, which didn't study holding Azenta successful the anterior period.
These 10 stocks could mint the adjacent question of millionaires ›

On November 14, Dallas-based Meros Investment Management disclosed a caller presumption successful Azenta (NASDAQ:AZTA), acquiring 159,945 shares valued astatine an estimated $4.6 million.

An SEC filing published November 14 shows that Meros Investment Management initiated a caller involvement successful Azenta (NASDAQ:AZTA), purchasing 159,945 shares during the 3rd quarter. The estimated worth of the presumption was $4.6 cardinal astatine the extremity of the 3rd quarter, reflecting 2% of the fund’s $234.2 cardinal successful reportable U.S. equity holdings. The money reported a full of 43 positions for the period.

Top 5 holdings arsenic of the filing:

NYSE: DCO: $16 cardinal (6.8% of AUM)
NYSE: PLYM: $14.6 cardinal (6.2% of AUM)
NASDAQ: MGNI: $13.4 cardinal (5.7% of AUM)
NYSE: SEI: $11.7 cardinal (5% of AUM)
NASDAQ: PLAB: $11.6 cardinal (4.9% of AUM)

As of Friday, shares were priced astatine $35.05, down 22% implicit the past twelvemonth and good underperforming the S&P 500, which was up 13% successful the aforesaid period.

Metric

Value

Market Capitalization	$1.6 billion
Revenue (TTM)	$593.8 million
Net Income (TTM)	$23.7 million
Price (as of marketplace adjacent Friday)	$35.05

Azenta provides automated acold illustration absorption systems, illustration mentation equipment, consumables, informatics, and laboratory services for the beingness sciences sector.
The institution generates gross done income of beingness subject products and recurring work contracts, including illustration storage, genomic sequencing, and laboratory analysis.
It serves pharmaceutical and biotechnology companies, biorepositories, and probe institutes crossed North America, Europe, China, and the Asia Pacific.

Azenta, Inc. is simply a starring supplier of illustration absorption and laboratory solutions for the planetary beingness sciences industry. The institution leverages precocious automation and integrated work offerings to enactment research, cause development, and biobanking initiatives. Its diversified lawsuit basal and end-to-end solutions presumption it arsenic a strategical spouse for organizations focused connected technological find and innovation.

Azenta’s improving fundamentals — and management’s expected borderline enlargement — marque this recently initiated presumption worthy watching. For a money that typically builds positions crossed industrials, existent estate, and tech-adjacent services, adding a life-sciences prime with stabilizing maturation suggests a measured stake connected operational execution alternatively than near-term momentum. The institution conscionable closed the fiscal twelvemonth with 4% gross maturation and a 310-basis-point leap successful adjusted EBITDA margin, with different astir 300 ground points of borderline enlargement planned for the adjacent fiscal year. That benignant of profitability reset tin materially alteration sentiment for a banal inactive trading much than 70% beneath its late-2021 highs.

The caller $4.6 cardinal involvement represents 2% of the fund’s U.S. equity publication — modest, but notable alongside larger positions crossed antithetic industries. For semipermanent investors, the cardinal question is whether Azenta’s multi-quarter restructuring gains tin beryllium sustained: Fourth-quarter integrated maturation was driven by an 11% surge successful Multiomics, and adjusted EBITDA roseate 29% twelvemonth implicit year. With $546 cardinal successful currency and improving escaped currency flow, the institution is going into the adjacent fiscal twelvemonth with much resilience than it’s had successful years.