Carlson Capital L P, a Dallas-based hedge fund sponsor, has recently added Glatfelter Corp (NYSE:GLT) to its portfolio. The firm acquired 6,790,000 shares at a trade price of $1.94 per share. This transaction represents a 5.03% change in the firm’s holdings and a 0.05% impact on its portfolio. With this acquisition, Carlson Capital L P now holds a 1.13% position in Glatfelter Corp and a 15.07% stake in the traded stock.
Carlson Capital L P, founded by Clint Carlson in 1993, is a hedge fund sponsor that focuses on achieving risk-adjusted returns through thoughtful and targeted hedging strategies. The firm manages approximately $23 billion in total assets across 29 accounts. Its top holdings include Horizon Therapeutics PLC, National Instruments Corp, Aerojet Rocketdyne Holdings Inc, Black Knight Inc, and SWK Holdings Corp. Financial Services and Industrials are the firm’s top sectors.
Glatfelter Corp, listed on the NYSE under the ticker symbol GLT, is a manufacturer and seller of paper and fiber products. The company operates through two segments: Composite Fibers and Airlaid Materials. Its manufacturing facilities are predominantly located in North America and Europe. With a market capitalization of $83.785 million, Glatfelter Corp’s current stock price is $1.86. However, the company’s GF Score of 65/100 suggests a poor future performance potential. Its Financial Strength rank is 4/10, Profitability Rank is 6/10, Growth Rank is 5/10, GF Value Rank is 2/10, and Momentum Rank is 4/10.
When considering Glatfelter Corp’s financial health, its cash to debt ratio is 0.06, and its ROE and ROA are -41.49 and -8.18, respectively. The company’s gross margin growth is -8.90, and its operating margin growth is -12.80. Although it has shown a 16.50% revenue growth over the past three years, its EBITDA growth and earning growth during the same period are 0.00 and -96.60, respectively.
In terms of momentum, Glatfelter Corp exhibits an RSI 14-day rank of 46 and a momentum index 6 – 1 month rank of 298. Its RSI 5-day, RSI 9-day, and RSI 14-day are 18.90, 30.54, and 36.02, respectively. The company’s momentum index 6 – 1 month and momentum index 12 – 1 month are -41.07 and -36.94, respectively. Unfortunately, the predictability rank for Glatfelter Corp is not available.
In conclusion, Carlson Capital L P’s addition of Glatfelter Corp to its portfolio is a significant move. While Glatfelter Corp’s future performance potential and financial health may be concerning, Carlson Capital L P’s investment could still yield positive returns. It is essential for value investors to exercise caution and conduct thorough research before making any investment decisions.
Definitions:
1. Trade price: The price at which a security was bought or sold.
2. Hedge fund sponsor: A company or organization that creates and manages a hedge fund.
3. Portfolio: A collection of investments held by an individual or an institution.
4. Composite Fibers: A segment of Glatfelter Corp’s operations that produces composite fibers.
5. Airlaid Materials: A segment of Glatfelter Corp’s operations that produces airlaid materials.
6. Market capitalization: The total value of a company’s outstanding shares of stock.
7. GF Score: A score that measures the overall attractiveness of a company as an investment opportunity.
8. ROE: Return on Equity, a measure of profitability that calculates the return generated on shareholders’ equity.
9. ROA: Return on Assets, a measure of profitability that calculates the return generated on total assets.
10. EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization, a measure of a company’s operating performance.
11. RSI: Relative Strength Index, a technical indicator used to determine whether a stock is overbought or oversold.
12. Momentum index: A measure of the rate of change in a stock’s price.