Carlson Capital L P, a Dallas-based hedge fund sponsor, recently expanded its portfolio with the acquisition of shares in Glatfelter Corp. This article provides an in-depth analysis of the transaction, the profiles of both entities, and the potential implications for value investors.
Details of the Transaction
On October 10, 2023, Carlson Capital L P added 702,6000 shares of Glatfelter Corp to its portfolio. The transaction was executed at a price of $1.8 per share, resulting in a 3.48% change in the firm's holdings. This acquisition has a 0.04% impact on Carlson Capital L P's portfolio and increases its position in Glatfelter Corp to 15.60%. Post-transaction, the firm holds a total of 702,6000 shares in Glatfelter Corp, representing 1.08% of its portfolio.
Profile of Carlson Capital L P
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. It currently invests in a wide variety of sectors, with financial services and industrials being the top sectors. The firm's top holdings include Horizon Therapeutics PLC, National Instruments Corp, Aerojet Rocketdyne Holdings Inc, Black Knight Inc, and SWK Holdings Corp. As of the date of this article, Carlson Capital L P manages approximately $1.17 billion in equity.
Overview of Glatfelter Corp
Glatfelter Corp is a manufacturer and seller of various paper and fiber products. The company operates through two segments: Composite Fibers and Airlaid Materials. It has manufacturing facilities in North America and Europe, with sales and distribution offices in Russia, Italy, China, and the United States. As of the date of this article, Glatfelter Corp has a market capitalization of $74.326 million and a current stock price of $1.65. The company's GF Value is 21.42, indicating a possible value trap for investors. The GF Score of Glatfelter Corp is 66/100, suggesting a poor future performance potential.
Analysis of Glatfelter Corp's Financials
Glatfelter Corp's financial strength is ranked 4/10, with an interest coverage of 0.06. The company's Altman Z score is 1.49, indicating a risk of financial distress. Its profitability rank is 6/10, with a Piotroski F-Score of 2, suggesting poor business operations. The company's operating margin has declined by 12.80%, and its growth rank is 5/10. The GF Value Rank of Glatfelter Corp is 2/10, indicating that the stock is significantly overvalued. The company's momentum rank is 4/10, suggesting a lack of momentum in the stock price.
Glatfelter Corp's Performance Metrics
Over the past three years, Glatfelter Corp has seen a revenue growth of 16.50%, but its EBITDA and earnings growth have been stagnant and negative, respectively. The company's gross margin growth is -8.90%, and its operating margin growth is -12.80%. The company's RSI 14 Day Rank is 55, and its Momentum Index 6 - 1 Month Rank is 284, indicating a lack of momentum in the stock price.
Conclusion
The recent acquisition by Carlson Capital L P has increased its exposure to Glatfelter Corp, a company with a poor future performance potential according to its GF Score. However, the firm's investment philosophy and diversified portfolio may help mitigate the risks associated with this transaction. As always, investors are advised to conduct their own thorough research before making any investment decisions.
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.
