Investors tracking insider transactions at Glatfelter Corp (NYSE:GLT) might note that Carlson Capital L P, a significant shareholder, has sold a substantial number of shares in the company. The transactions, which occurred on June 27 and June 28, 2024, involved the sale of Glatfelter common stock at prices ranging from $1.4 to $1.65 per share, totaling over $3.5 million.
On the first day, 207,325 shares were sold at a price per share of $1.65, and the following day an additional 2,262,984 shares were sold with prices as low as $1.40 per share. These sales were part of a series of transactions with varying per-share prices. The reporting entities have agreed to provide full information regarding the number of shares sold at each separate price upon request by the Securities and Exchange Commission staff or any security holder of the issuer.
The shares were sold by entities affiliated with Carlson Capital L P, including Black Diamond Arbitrage Offshore Ltd. and EDCA 2019 Fund, L.P. Clint D. Carlson, the president of Carlson Capital L P and its general partner Asgard Investment Corp. II, facilitated these transactions. Post these sales, the remaining shares owned by the entities indicate a significant stake in Glatfelter Corp, with EDCA 2019 Fund, L.P. and Black Diamond Arbitrage Offshore Ltd. directly disposing of 46,192 and 1,919,917 shares respectively.
It is important to note that Carlson Capital L P, as the investment manager, and Clint D. Carlson, as the president of the related entities, disclaim beneficial ownership of the securities sold, except to the extent of their pecuniary interest therein. This disclaimer is a standard declaration in such filings to clarify that the reporting persons are not claiming personal ownership of the shares for the purposes of Section 16 of the Securities and Exchange Act of 1934, as amended.
These insider transactions can be of interest to investors as they provide insights into the actions of significant shareholders and their outlook on the company's stock. Glatfelter Corp, with a history dating back over 150 years, is a global supplier of engineered materials with a focus on innovation and sustainability in its product offerings.
In other recent news, Glatfelter has announced its Q1 2024 results and progress on its merger with Berry Global's HHNF business. The company's adjusted EBITDA for the first quarter was $23.8 million, marking a slight decrease from the previous year. However, growth was observed in the company's Spunlace and Composite Fibers segments, attributed to improvements in the price-cost gap and operational efficiencies.
On the other hand, the Airlaid Materials segment faced challenges, particularly in the European market, resulting in a decrease in EBITDA. Despite these difficulties, Glatfelter is making significant strides towards its merger with Berry Global's HHNF business, with the transaction expected to conclude in the second half of 2024.
These developments highlight the company's resilience in navigating market challenges and its strategic efforts to enhance its market position. As the merger progresses, the company is also working on the establishment of NewCo, a new company structure planned to coincide with the completion of the merger. The company's efforts to broaden the Airlaid customer base and implement price increases in North America further demonstrate its strategic approach to growth and profitability.
InvestingPro Insights
Investors considering the implications of the insider transactions at Glatfelter Corp (NYSE:GLT) should also take note of several key metrics and tips from InvestingPro. With a market capitalization of $61.77 million, Glatfelter is currently facing financial challenges, as evidenced by a negative P/E ratio of -0.67 for the last twelve months as of Q1 2024, and an even lower adjusted P/E ratio of -0.78. This suggests that the company is not currently profitable, aligning with an InvestingPro Tip that highlights Glatfelter's lack of profitability over the last twelve months.
Another concerning indicator is the company's gross profit margin, which stands at 9.59% for the same period. This low margin can be indicative of the competitive pressures Glatfelter faces or inefficiencies in its operations, which is corroborated by an InvestingPro Tip pointing out weak gross profit margins.
Investors should also be aware that the stock has experienced significant volatility, with a 1-week price total return of -18.24% and a 3-month price total return of -27.98%, reflecting substantial recent declines in share value. This aligns with an InvestingPro Tip that mentions the stock's high volatility and significant price drop over the last three months.
For those seeking a deeper analysis and more tips, InvestingPro offers additional insights into Glatfelter Corp. For instance, there are tips regarding the company's debt burden and cash burn rate, which are critical factors to consider when assessing the financial health of the company. To access these additional tips and metrics, visit https://www.investing.com/pro/GLT and consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. In total, there are 11 more InvestingPro Tips available that could provide valuable guidance for investors.
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