In a recent transaction, various entities associated with Carlson Capital, L.P. have sold a significant number of shares in Glatfelter Corp (NYSE:GLT). The sale, which involved 50,000 shares of the paper manufacturing company, amounted to a total of $91,000. The shares were sold at varying prices ranging from $1.73 to $1.85, with an average selling price of $1.82 per share.
The entities involved in the sale include Double Black Diamond Offshore Ltd, Black Diamond Offshore Ltd., and Asgard Investment Corp. II, all of which are connected through their management by Carlson Capital, L.P., a Delaware limited partnership. Clint D. Carlson, President of Carlson Capital and Asgard Investment Corp. II, is at the helm of these entities.
The shares in question were held directly by Double Black Diamond Offshore Ltd and Black Diamond Offshore Ltd, both Cayman Islands exempt companies. The transaction was carried out on September 19, 2024, and was reported in a Form 4 filing with the Securities and Exchange Commission on September 23, 2024.
According to the footnotes in the filing, Carlson Capital serves as the investment manager to the funds and has the power to direct their affairs. Asgard Investment Corp. II acts as the general partner of Carlson Capital, and Clint D. Carlson, as President, directs the affairs of both Carlson Capital and Asgard Investment Corp. II.
The reporting individuals have disclaimed beneficial ownership of the securities sold, except to the extent of their pecuniary interest. Post-transaction, the entities still hold a combined total of 4,655,691 shares of Glatfelter Corp.
This sale reflects a movement in the holdings of significant shareholders in Glatfelter Corp, a company with a long-standing presence in the paper mills industry. Investors and market watchers often look to such transactions for insights into the strategies and confidence levels of major investors in the companies they manage.
In other recent news, Glatfelter, a global supplier of engineered materials, has reported a significant uptick in its financial performance for the second quarter of 2024. The company noted an $8.3 million increase in adjusted EBITDA compared to the same period last year, primarily driven by its Composite Fibers and Spunlace businesses. Despite a decrease in demand in the Airlaid Materials segment, Glatfelter anticipates a surge in volume in the latter half of the year.
Moreover, Glatfelter is progressing in its proposed merger with Berry's HHNF business, which is expected to close later this year. The merged entity will be named Magnera. The company's focus on product innovation within its Airlaid portfolio, positive price-cost spread across all segments, and favorable working capital projections were other key points discussed during the earnings call.
These recent developments highlight Glatfelter's improved financial health and strategic progress. The company has reaffirmed its full-year EBITDA guidance of $110 to $120 million. While some challenges persist in the Airlaid Materials segment, Glatfelter remains confident in its innovation and expansion strategies, which are expected to drive volume growth.
InvestingPro Insights
Amidst the recent transactions involving Carlson Capital's sale of Glatfelter Corp (NYSE:GLT) shares, a closer look at the company's financial health through InvestingPro data reveals key insights. Glatfelter Corp currently has a market capitalization of $82.35 million and has been navigating through financial challenges, as indicated by a negative P/E ratio of -1.14, reflecting the company's lack of profitability over the last twelve months. Additionally, the company's revenue has experienced a decline, with a -11.74% change in the last twelve months as of Q2 2024.
InvestingPro Tips highlight several aspects of Glatfelter Corp's financial situation that investors may find pertinent. The company operates with a significant debt burden and is quickly burning through cash, which are critical factors for stakeholders to consider. Moreover, Glatfelter's stock price movements have been quite volatile, which could influence investment decisions. On a positive note, the company's liquid assets exceed its short-term obligations, providing some financial flexibility in the near term.
It's noteworthy that Glatfelter Corp does not pay a dividend to shareholders, which may affect the investment appeal for income-focused investors. For those interested in a deeper analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/GLT, which can provide further guidance on the company's financial standing and investment potential.
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