Camtek Hits Record Revenue but Here's Why One Fund Still Cut $3 Million Amid a 30% Run

California-based First Wilshire Securities Management reduced its stake in Camtek (NASDAQ:CAMT) by 81,598 shares during the third quarter, contributing to an estimated $2.67 million decrease, according to a November 14 SEC filing.

What Happened

According to a filing with the Securities and Exchange Commission dated November 14, First Wilshire Securities Management sold 81,598 shares of Camtek (NASDAQ:CAMT) during the third quarter. This reduced its stake to 206,424 shares with a quarter-end value of $21.68 million. The transaction represents a 1.94% shift in the fund’s total reportable AUM for the period.

What Else to Know

Camtek now composes 5.77% of First Wilshire's 13F AUM.

Top five holdings after the quarter:

• NASDAQ:EZPW: $41.65 million (11.1% of AUM)
• NASDAQ:LBTYA: $26.48 million (7.0% of AUM)
• NASDAQ:CAMT: $21.68 million (5.8% of AUM)
• NYSE:ECVT: $19.12 million (5.1% of AUM)
• NYSEMKT:SGOV: $17.97 million (4.8% of AUM)

As of Wednesday, Camtek shares were priced at $109.14, up about 30% over the past year and well outperforming the S&P 500, which is instead up about 15% in the same period.

Company Overview

Company Snapshot

• Camtek develops and sells inspection and metrology systems such as Eagle-i, Eagle-AP, and Golden Eagle, serving advanced packaging, memory, CMOS image sensors, MEMS, and RF segments in the semiconductor industry.
• The company generates revenue through the sale of high-precision equipment and related software.
• Its primary customers include semiconductor manufacturers and advanced packaging providers in the Asia Pacific, the United States, and Europe.

Camtek is a technology company specializing in advanced inspection and metrology solutions for the semiconductor industry, with a focus on supporting next-generation packaging and manufacturing processes. The company leverages proprietary hardware and software platforms to deliver high-precision, 2D and 3D inspection capabilities, enabling customers to achieve higher yields and reliability. Camtek's global presence and deep expertise in semiconductor equipment position it as a key supplier to leading chip manufacturers worldwide.

Foolish Take

Camtek is seemingly firing on all cylinders operationally, posting record third-quarter revenue of $126 million, up 12% year over year, with non-GAAP operating margins near 30% and management guiding to another strong quarter ahead. Demand tied to AI-driven advanced packaging remains the core growth engine, and the company now expects full-year revenue of roughly $495 million, a record that’s about 15% above last year’s figures.

Against that backdrop, trimming exposure looks less like a loss of conviction and more like portfolio discipline. Camtek’s stock has climbed about 30% over the past year and, while still below last year’s highs, has materially outperformed many semiconductor equipment peers. For a fund where Camtek remains a top holding at nearly 6% of assets, locking in gains after a strong run is rational risk management, not a bearish call.

That’s because the business momentum is real, margins are expanding, and the balance sheet is flush with cash after recent financing activity. But great companies don’t move in straight lines. Short-term volatility driven by positioning should be expected, especially after record quarters. If Camtek continues executing as it has, episodic pullbacks driven by profit-taking may end up being opportunities rather than warnings.

Glossary

13F reportable assets under management (AUM): The total value of securities a fund manager must disclose in quarterly SEC filings.
Exposure: The amount of capital or percentage of a portfolio invested in a particular asset or company.
Stake: The ownership interest or number of shares held in a company by an investor or fund.
Assets under management (AUM): The total market value of investments that a fund or manager oversees on behalf of clients.
Outperforming: Achieving a higher return than a relevant benchmark or index over a specific period.
Inspection and metrology systems: Equipment used to examine and measure semiconductor components for quality and precision.
Advanced packaging: Modern methods of enclosing semiconductor devices to improve performance and functionality.
CMOS image sensors: Semiconductor devices that convert light into electronic signals for cameras and imaging equipment.
MEMS: Microelectromechanical systems—tiny devices combining electrical and mechanical components, often used in sensors.
RF segments: Parts of the semiconductor industry focused on radio frequency technologies for wireless communication.
Proprietary hardware and software: Technology owned and developed by a company, not available for public use or licensing.
TTM: The 12-month period ending with the most recent quarterly report.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends iShares Trust - iShares 0-3 Month Treasury Bond ETF. The Motley Fool has a disclosure policy.