Why a $5 Million Bet on Azenta Could Pay Off After a 70% Stock Slide
Key Points
Dallas-based Meros Investment Management purchased 159,945 shares of Azenta valued at $4.6 million in the third quarter.
The position represents 2% of Meros’s 13F reportable assets under management.
The move marked a new position for Meros, which didn't report holding Azenta in the prior period.
- These 10 stocks could mint the next wave of millionaires ›
On November 14, Dallas-based Meros Investment Management disclosed a new position in Azenta (NASDAQ:AZTA), acquiring 159,945 shares valued at an estimated $4.6 million.
What Happened
An SEC filing published November 14 shows that Meros Investment Management initiated a new stake in Azenta (NASDAQ:AZTA), purchasing 159,945 shares during the third quarter. The estimated value of the position was $4.6 million at the end of the third quarter, reflecting 2% of the fund’s $234.2 million in reportable U.S. equity holdings. The fund reported a total of 43 positions for the period.
What Else to Know
Top five holdings as of the filing:
- NYSE: DCO: $16 million (6.8% of AUM)
- NYSE: PLYM: $14.6 million (6.2% of AUM)
- NASDAQ: MGNI: $13.4 million (5.7% of AUM)
- NYSE: SEI: $11.7 million (5% of AUM)
- NASDAQ: PLAB: $11.6 million (4.9% of AUM)
As of Friday, shares were priced at $35.05, down 22% over the past year and well underperforming the S&P 500, which was up 13% in the same period.
Company Overview
| Metric | Value |
|---|---|
| Market Capitalization | $1.6 billion |
| Revenue (TTM) | $593.8 million |
| Net Income (TTM) | $23.7 million |
| Price (as of market close Friday) | $35.05 |
Company Snapshot
- Azenta provides automated cold sample management systems, sample preparation equipment, consumables, informatics, and laboratory services for the life sciences sector.
- The company generates revenue through sales of life science products and recurring service contracts, including sample storage, genomic sequencing, and laboratory analysis.
- It serves pharmaceutical and biotechnology companies, biorepositories, and research institutes across North America, Europe, China, and the Asia Pacific.
Azenta, Inc. is a leading provider of sample management and laboratory solutions for the global life sciences industry. The company leverages advanced automation and integrated service offerings to support research, drug development, and biobanking initiatives. Its diversified customer base and end-to-end solutions position it as a strategic partner for organizations focused on scientific discovery and innovation.
Foolish Take
Azenta’s improving fundamentals — and management’s expected margin expansion — make this newly initiated position worth watching. For a fund that typically builds positions across industrials, real estate, and tech-adjacent services, adding a life-sciences pick with stabilizing growth suggests a measured bet on operational execution rather than near-term momentum. The company just closed the fiscal year with 4% revenue growth and a 310-basis-point jump in adjusted EBITDA margin, with another roughly 300 basis points of margin expansion planned for the next fiscal year. That kind of profitability reset can materially change sentiment for a stock still trading more than 70% below its late-2021 highs.
The new $4.6 million stake represents 2% of the fund’s U.S. equity book — modest, but notable alongside larger positions across different industries. For long-term investors, the key question is whether Azenta’s multi-quarter restructuring gains can be sustained: Fourth-quarter organic growth was driven by an 11% surge in Multiomics, and adjusted EBITDA rose 29% year over year. With $546 million in cash and improving free cash flow, the company is going into the next fiscal year with more resilience than it’s had in years.
Glossary
13F reportable assets under management: The value of U.S. equity securities a fund must disclose quarterly to the Securities and Exchange Commission (SEC) on Form 13F.
Assets under management (AUM): The total market value of investments managed by a fund or investment firm.
Alpha: A measure of an investment's performance compared to a benchmark, showing value added or subtracted by active management.
Stake: The amount of ownership or investment a fund holds in a particular company.
Biorepositories: Facilities that collect, store, and manage biological samples for research or clinical use.
Sample management systems: Automated solutions for storing, tracking, and handling biological or laboratory samples.
Consumables: Laboratory products that are used up during experiments or processes and need regular replacement.
Informatics: The use of software and data systems to manage, analyze, and interpret scientific or laboratory information.
Genomic sequencing: The process of determining the complete DNA sequence of an organism's genome.
TTM: The 12-month period ending with the most recent quarterly report.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 991%* — a market-crushing outperformance compared to 195% for the S&P 500.
They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.
See the stocks »
*Stock Advisor returns as of December 1, 2025
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Ducommun. The Motley Fool recommends Magnite. The Motley Fool has a disclosure policy.
Recommended Articles
