On December 31, 2024, Chuck Royce (Trades, Portfolio), a renowned figure in small-cap investing, made a strategic move by reducing the position in Viant Technology Inc (DSP, Financial) by 198,980 shares. This transaction was executed at a price of $18.99 per share. Despite this reduction, Royce maintains a significant holding of 724,100 shares in the company, which now represents 4.51% of the firm's total holdings in Viant Technology Inc. This adjustment reflects a 0.03% decrease in the portfolio's position, indicating a calculated decision in line with Royce's investment strategy.

Chuck Royce (Trades, Portfolio): A Pioneer in Small-Cap Investing

Charles M. Royce is a distinguished name in the realm of small-cap investing, having managed the Royce Pennsylvania Mutual Fund since 1972. The firm's investment philosophy is centered around identifying small-cap companies with robust balance sheets and promising futures. Royce's approach involves seeking out stocks that are trading below their intrinsic enterprise value, focusing on companies with market capitalizations up to $5 billion, and occasionally up to $10 billion. This strategy has been instrumental in building a diverse portfolio, with top holdings including SEI Investments Co (SEIC, Financial) and Air Lease Corp (AL, Financial).

Understanding Viant Technology Inc

Viant Technology Inc is a prominent player in the advertising software industry, based in the USA. The company specializes in programmatic advertising, which automates the buying process across various platforms such as desktop, mobile, connected TV, and digital billboards. This innovative approach allows marketers to efficiently purchase ads, enhancing the reach and effectiveness of their advertising campaigns. Viant Technology's business model is pivotal in the evolving landscape of digital advertising, positioning it as a key player in the software industry.

Impact of the Transaction on Royce's Portfolio

The reduction in Viant Technology Inc shares signifies a minor adjustment in Chuck Royce (Trades, Portfolio)'s extensive portfolio, which is valued at $11 billion. The current holding of 724,100 shares in Viant Technology Inc constitutes 0.13% of the overall portfolio. This strategic move aligns with Royce's focus on maintaining a balanced and diversified investment strategy, particularly within the technology sector, which is one of the firm's top sectors alongside industrials.

Financial Metrics and Valuation of Viant Technology Inc

Viant Technology Inc currently holds a market capitalization of $352.574 million, with a stock price of $21.97. The stock is considered significantly overvalued, with a GF Value of 5.59. This valuation suggests that the stock is trading at a premium, with a price to GF Value ratio of 3.93. Despite this, the stock has experienced a gain of 15.69% since the transaction, indicating positive market sentiment.

Performance and Growth Metrics

Viant Technology Inc's financial performance is characterized by a high PE percentage of 300.96 and a [GF-Score](https://www.gurufocus.com/term/gf-score/DSP) of 71/100, suggesting average performance potential. The company boasts a strong [Growth Rank](https://www.gurufocus.com/term/rank-growth/DSP) of 9/10, with a gross margin growth of 4.80%. However, the company faces challenges with a three-year revenue growth of -3.90% and an earnings growth of -76.70%, reflecting the volatility in its financial metrics.

Market and Industry Context

Within the software industry, Viant Technology Inc holds a moderate position, with a [Profitability Rank](https://www.gurufocus.com/term/rank-profitability/DSP) of 4/10 and a [Momentum Rank](https://www.gurufocus.com/term/rank-momentum/DSP) of 6/10. The company's [Financial Strength](https://www.gurufocus.com/term/rank-balancesheet/DSP) is supported by a cash to debt ratio of 7.99, indicating a solid balance sheet. However, the [Altman Z score](https://www.gurufocus.com/term/zscore/DSP) of 2.50 suggests moderate financial health, necessitating careful monitoring of its financial strategies.

Conclusion

Chuck Royce (Trades, Portfolio)'s decision to reduce the position in Viant Technology Inc reflects a strategic adjustment within the firm's portfolio, aligning with its investment philosophy of focusing on small-cap companies with strong fundamentals. While Viant Technology Inc faces challenges in its financial performance, its position in the digital advertising space offers potential for future growth. The transaction underscores the importance of maintaining a balanced and diversified portfolio, particularly in the dynamic technology sector.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.