Turtle Creek Asset Management Inc., a significant shareholder of JELD-WEN (NYSE:JELD) Holding, Inc. (NYSE:JELD), recently increased its stake in the company through a series of transactions. Between November 5 and November 7, Turtle Creek acquired a total of 1,030,000 shares of JELD-WEN's common stock, with an aggregate purchase value of approximately $10.4 million.
The purchases were executed at weighted average prices ranging from $10.0586 to $10.7066 per share. These transactions were spread across several funds managed by Turtle Creek, including the Turtle Creek Equity Fund, Turtle Creek Investment Fund, Turtle Creek United States Equity Fund, Turtle Creek Synthetic PE Fund, and Turtle Creek North American Equity Fund.
JELD-WEN Holding, Inc., headquartered in Charlotte, North Carolina, is a leading manufacturer in the millwork and structural wood products industry. Turtle Creek's increased investment reflects its continued confidence in the company's potential.
In other recent news, JELD-WEN Holding, Inc. reported a decrease in third-quarter sales and earnings before interest, taxes, depreciation, and amortization (EBITDA). The company's Q3 revenues fell by 13% year-over-year to $935 million, while adjusted EBITDA dropped to $82 million. This decline is attributed to softer demand, particularly in North America and Europe, and a shift in consumer preference towards lower-priced products. As a result, Loop Capital adjusted its outlook on JELD-WEN, reducing the price target from the previous $16.00 to $12.00, while maintaining a Hold rating on the stock.
JELD-WEN also disclosed the loss of its stock business with a major Midwest retailer, which is projected to have a $75 million to $100 million annual impact on the company's sales. Despite this, JELD-WEN is implementing cost-reduction initiatives and focusing on operational efficiency and customer engagement. The company has revised its 2024 revenue guidance downward to $3.7 billion to $3.75 billion and expects $115 million in cost savings and $125 million in operating cash flow for fiscal 2024. These are recent developments in JELD-WEN's financial status and strategic direction.
InvestingPro Insights
Turtle Creek Asset Management's recent acquisition of JELD-WEN shares comes at a time when the company's stock has experienced significant volatility. According to InvestingPro data, JELD-WEN's stock has taken a substantial hit over the last week, with a 1-week price total return of -27.81%. This decline is part of a broader trend, as the stock has fallen by 34.81% over the past month and 28.06% over the last three months.
Despite these recent setbacks, InvestingPro Tips suggest that JELD-WEN's net income is expected to grow this year, and analysts predict the company will be profitable. This potential turnaround may have influenced Turtle Creek's decision to increase its stake. Additionally, the stock's current Relative Strength Index (RSI) suggests it is in oversold territory, potentially indicating a buying opportunity for value investors like Turtle Creek.
It's worth noting that JELD-WEN's financial metrics present a mixed picture. The company's revenue for the last twelve months stands at $3.90 billion, but it has experienced a revenue decline of 22.72% over the same period. The company's price-to-book ratio of 1.21 might attract value-oriented investors, although its negative earnings per share of -$1.68 for the last twelve months highlights ongoing profitability challenges.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for JELD-WEN, providing a deeper understanding of the company's financial health and market position.
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