On October 3, 2023, Carlson Capital L P, a Dallas-based hedge fund sponsor, added Glatfelter Corp (GLT, Financial) 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. The firm now holds a 1.13% position in Glatfelter Corp and a 15.07% stake in the traded stock. This article aims to provide a comprehensive overview of the transaction, the profiles of Carlson Capital L P and Glatfelter Corp, and an analysis of the traded stock's financial health and momentum.
Carlson Capital L P: A Profile
Carlson Capital L P 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. The firm currently has 178 employees, with 89 of them being investment professionals. It manages approximately $23 billion in total assets spread across 29 accounts. The firm's top holdings include Horizon Therapeutics PLC(HZNP, Financial), National Instruments Corp(NATI, Financial), Aerojet Rocketdyne Holdings Inc(AJRD, Financial), Black Knight Inc(BKI, Financial), and SWK Holdings Corp(SWKH, Financial). The firm's top sectors are Financial Services and Industrials.
Glatfelter Corp: An Overview
Glatfelter Corporation (GLT, Financial) is a manufacturer and seller of various paper and fiber products. The company operates through two segments: Composite Fibers and Airlaid Materials. The majority of the company's manufacturing facilities are located in North America and Europe. The company's market capitalization stands at $83.785 million, and its current stock price is $1.86. The company's GF Score is 65/100, indicating a poor future performance potential. The company's Financial Strength rank is 4/10, its Profitability Rank is 6/10, its Growth Rank is 5/10, its GF Value Rank is 2/10, and its Momentum Rank is 4/10.
Glatfelter Corp's Financial Health
Glatfelter Corp's financial health is a crucial factor to consider. The company's 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. The company's 3-year revenue growth is 16.50, but its EBITDA growth and earning growth over the same period are 0.00 and -96.60, respectively.
Glatfelter Corp's Momentum and Predictability
The company's 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. The company's RSI 14-day rank is 46, and its momentum index 6 - 1 month rank is 298. The company's predictability rank is not available.
Conclusion
In conclusion, Carlson Capital L P's recent acquisition of Glatfelter Corp shares represents a significant addition to its portfolio. Despite Glatfelter Corp's poor future performance potential and financial health, the firm's investment could yield positive returns if the company's financial health and momentum improve. However, value investors should exercise caution and conduct thorough research before making investment decisions.
