Carlson Capital L P Acquires Stake in Glatfelter Corp
Carlson Capital L P (Trades, Portfolio), a Dallas-based hedge fund sponsor, recently added to its portfolio by acquiring a significant stake in Glatfelter Corp. This article provides an in-depth analysis of the transaction, the profiles of both the guru and the traded company, and the potential implications of this acquisition on the stock market.
Details of the Transaction
On August 16, 2023, Carlson Capital L P (Trades, Portfolio) added 250,000 shares of Glatfelter Corp to its portfolio. The transaction was executed at a trade price of $2 per share, resulting in a 4.23% change in shares. This trade had a 0.04% impact on Carlson Capital's portfolio, bringing its total holdings in Glatfelter Corp to 6,165,000 shares. This represents 1.06% of the guru's portfolio and 13.68% of the traded stock.
Profile of the Guru: Carlson Capital L P (Trades, Portfolio)
Carlson Capital L P (Trades, Portfolio) is a hedge fund sponsor founded in 1993 by Clint Carlson. The firm believes in achieving risk-adjusted returns through thoughtful, targeted hedging strategies and diversification across multiple strategies and decision-makers. With approximately $23 billion in total assets under management, the firm invests in a wide variety of sectors, including finance, information technology, consumer discretionary, energy, healthcare, utilities, and telecommunications. The firm's top holdings include Horizon Therapeutics PLC, National Instruments Corp, Aerojet Rocketdyne Holdings Inc, Black Knight Inc, and SWK Holdings Corp.
Overview of the Traded Stock: Glatfelter Corp
Glatfelter Corporation is a manufacturer and seller of various paper and fiber products. The company operates through two segments: Composite Fibers and Airlaid Materials. With most of its revenue coming from Europe, the United States, and Canada, the company has a market capitalization of $92.344 million and a current stock price of $2.05. However, the company's PE percentage is currently at 0.00, indicating that it is at a loss. According to GuruFocus, the stock's GF Value is 22.26, suggesting that it might be a possible value trap.
Analysis of the Traded Stock's Performance
Since its IPO in 1984, Glatfelter Corp's stock has seen a 327.08% increase. However, the stock's year-to-date performance shows a decrease of 27.56%. The stock's GF Score is 67/100, indicating a potential for average performance. The stock's Financial Strength is ranked 4/10, its Profitability Rank is 6/10, and its Growth Rank is 5/10. The stock's Piotroski F-Score is 2, and its Altman Z score is 1.50, indicating potential financial distress.
The Traded Stock's Industry Performance
Glatfelter Corp operates in the Forest Products industry. The stock's interest coverage is 0.24, ranking it 198th in the industry. The stock's ROE is -41.49, and its ROA is -8.18, ranking it 270th and 265th in the industry, respectively.
Growth Metrics of the Traded Stock
Over the past three years, Glatfelter Corp has seen a gross margin decline of 8.90% and an operating margin decline of 12.80%. The company's revenue growth over the same period is 16.50%, but its EBITDA growth is 0.00, and its earnings growth is -96.60%.
Momentum and Predictability of the Traded Stock
The stock's RSI 5 Day is 29.36, its RSI 9 Day is 27.60, and its RSI 14 Day is 29.92. The stock's Momentum Index 6 - 1 Month is -17.33, and its Momentum Index 12 - 1 Month is -40.99. The stock's RSI 14 Day Rank is 28, and its Momentum Index 6 - 1 Month Rank is 230.
In conclusion, Carlson Capital L P (Trades, Portfolio)'s acquisition of Glatfelter Corp shares could potentially influence the stock's performance and the guru's portfolio. However, given the stock's current performance metrics and industry rankings, investors should exercise caution and conduct further research before making investment decisions.
This article first appeared on GuruFocus.
