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Should You Hold CONSOL Energy (CEIX) for the Long-Term?

Greenlight Capital, an investment management company, released its fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. For 2022, the fund returned 36.6% net of fees and expenses compared to an 18.1% loss for the S&P 500 Index. 2022 was an exceptionally good year for the strategy as the market environment was favorable, and the firm expects attractive, absolute, and risk-adjusted returns to be achieved over the long term. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Greenlight Capital highlighted stocks like CONSOL Energy Inc. (NYSE:CEIX) in the Q4 2022 investor letter. Headquartered in Canonsburg, Pennsylvania, CONSOL Energy Inc. (NYSE:CEIX) is a bituminous coal producer and exporter. On January 17, 2023, CONSOL Energy Inc. (NYSE:CEIX) stock closed at $61.61 per share. One-month return of CONSOL Energy Inc. (NYSE:CEIX) was -16.60%, and its shares gained 148.13% of their value over the last 52 weeks. CONSOL Energy Inc. (NYSE:CEIX) has a market capitalization of $2.148 billion.

Greenlight Capital made the following comment about CONSOL Energy Inc. (NYSE:CEIX) in its Q4 2022 investor letter:

"As CONSOL Energy Inc. (NYSE:CEIX) rode a surge in coal prices, the shares soared from $22.71 to $65.00 and the company paid $2.05 per share in dividends. In 2022, part of the higher coal prices were absorbed by hedges and forward contracts at what turned out to be below-market prices. Even so, we believe the company ended the year with no net debt. From here, with the below market contracts mostly behind, we expect the higher prices to translate directly into much higher earnings, with most of the free cash flow to be returned to shareholders. Much of the pricing in 2023 and some of the pricing in 2024 is locked in. As a result, we believe that the company will generate free cash flow over the next two years equal to its current market capitalization. While thermal coal will probably never be cool to own, we believe the returns for owning CEIX should continue to be hot."

CONSOL Energy Inc. (NYSE:CEIX) is not on our 30 Most Popular Stocks Among Hedge Funds list. As per our database, 31 hedge fund portfolios held CONSOL Energy Inc. (NYSE:CEIX) at the end of the third quarter, which was 23 in the previous quarter.

We discussed CONSOL Energy Inc. (NYSE:CEIX) in another article and shared the best multibagger stocks to buy. In addition, please check out our hedge fund investor letters Q4 2022 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.