Will Chart Industries (GTLS) Benefit From the Recent Acquisition?
Carillon Tower Advisers, an investment management company, released its “Carillon Eagle Small Cap Growth Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. Small-cap stocks posted solid returns in the fourth quarter for the first time in 2022. The Russell 2000 Growth Index was up 4.11% trailing the Russell 2000 Value Index, which returned 8.39% in the quarter. For the year 2022, small-cap stocks posted disappointing results. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Carillon Eagle Small Cap Growth Fund highlighted stocks like Chart Industries, Inc. (NYSE:GTLS) in the Q4 2022 investor letter. Headquartered in Ball Ground, Georgia, Chart Industries, Inc. (NYSE:GTLS) is an engineered equipment manufacturer. On February 1, 2023, Chart Industries, Inc. (NYSE:GTLS) stock closed at $137.69 per share. One-month return of Chart Industries, Inc. (NYSE:GTLS) was 17.34%, and its shares gained 17.29% of their value over the last 52 weeks. Chart Industries, Inc. (NYSE:GTLS) has a market capitalization of $5.86 billion.
Carillon Eagle Small Cap Growth Fund made the following comment about Chart Industries, Inc. (NYSE:GTLS) in its Q4 2022 investor letter:
"Chart Industries, Inc. (NYSE:GTLS) manufactures highly engineered equipment for multiple applications in the energy and industrial gas markets. The company announced the notable pending acquisition of a U.K.-based provider of air and gas handling products. Unfortunately the stock subsequently sold off rather aggressively largely due to investor concerns regarding the additional debt financing needed to fund the transaction. Despite the added financial leverage, we believe the deal should provide Chart with a higher level of aftermarket exposure, which carries both a higher margin as well as a more recurring and less cyclical revenue stream. The acquisition also would expand the company’s offerings in energy transition areas such as green hydrogen, carbon capture, and water treatment, while complementing Chart’s core capabilities in liquefied natural gas."
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Chart Industries, Inc. (NYSE:GTLS) is not on our 30 Most Popular Stocks Among Hedge Funds list. As per our database, 22 hedge fund portfolios held Chart Industries, Inc. (NYSE:GTLS) at the end of the third quarter, which was 26 in the previous quarter.
We discussed Chart Industries, Inc. (NYSE:GTLS) in another article and shared Carillon Tower Advisers’ views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
