Here's Why Conestoga Capital Advisors Sold Mettler-Toledo International (MTD)

Conestoga Capital Advisors, an asset management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter began with a historically poor start but gained momentum later as tariff fears subsided and market volatility dropped precipitously. Conestoga Mid Cap Composite returned 3.46% net-of-fees in the quarter, trailing the Russell Mid Cap Growth Index’s 18.20% return. After a strong first quarter in 2025, investor enthusiasm shifted towards high-beta and AI stocks following the "Liberation Day" announcements, creating a narrow leadership group that posed challenges for the Mid Cap Strategy in the second quarter. Please review the fund's top 5 holdings to gain insight into their key selections for 2025.

In its second quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks such as Mettler-Toledo International Inc. (NYSE:MTD). Mettler-Toledo International Inc. (NYSE:MTD) is a precision instruments manufacturer. The one-month return of Mettler-Toledo International Inc. (NYSE:MTD) was 4.62%, and its shares lost 16.46% of their value over the last 52 weeks. On July 28, 2025, Mettler-Toledo International Inc. (NYSE:MTD) stock closed at $1,261.03 per share, with a market capitalization of $26.208 billion.

Conestoga Capital Advisors stated the following regarding Mettler-Toledo International Inc. (NYSE:MTD) in its second quarter 2025 investor letter:

"While Mettler-Toledo International Inc. (NYSE:MTD) remains a best-in-class operator with leading market share in precision weighing and analytical instruments, macroeconomic pressures across its end markets continue to constrain its ability to achieve the mid-teens earnings growth it has delivered historically. China represents a high-teens percentage of MTD’s revenue, and ongoing US-China tensions create an additional headwind, limiting visibility into a return to historical growth rates in the region. Given these dynamics, we exited our position and redeployed the proceeds into investments with clearer long-term growth trajectories."

Mettler-Toledo International Inc. (NYSE:MTD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge fund portfolios held Mettler-Toledo International Inc. (NYSE:MTD) at the end of the first quarter, compared to 50 in the previous quarter. In the first quarter of 2025, Mettler-Toledo International Inc. (NYSE:MTD) reported sales of $884 million, which reflects 3% decline in local currency. While we acknowledge the potential of Mettler-Toledo International Inc. (NYSE:MTD) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Mettler-Toledo International Inc. (NYSE:MTD) and shared Mar Vista U.S. Quality Premier Strategy's views on the company. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.