In a recent transaction, Linda Harty, a director at Chart Industries Inc. (NASDAQ:NYSE:GTLS), purchased depositary shares valued at approximately $240,000. This move, recorded on September 16, 2024, signals a notable buy from a key member of the company's board.
Harty acquired 5,000 depositary shares at a price of $48.0459 each. These securities are not common stock but represent a stake in the company's 6.75% Series B Mandatory Convertible Preferred Stock. Following this transaction, Harty's direct holdings in depositary shares stand at 5,000.
The depositary shares in question are each equivalent to 1/20th of a share of the company's mandatory convertible preferred stock. Upon the mandatory conversion date, each share of this preferred stock will automatically convert into a number of shares of Chart Industries' common stock. The conversion rate depends on the market value of the common stock and ranges between 7.0520 and 8.4620 shares of common stock per share of mandatory convertible preferred stock.
Investors and industry observers often look to insider transactions such as these for signals about a company's prospects. While a director's purchase does not always predict future stock movement, it can indicate confidence in the company's value and future performance.
Chart Industries, headquartered in Ball (NYSE:BALL) Ground, Georgia, specializes in the manufacturing of highly engineered equipment servicing multiple applications in the energy and industrial gas markets. The company's stock, traded under the ticker symbol GTLS, is followed by investors interested in the fabricated plate work sector.
As with all insider transactions, this purchase was disclosed in accordance with SEC regulations, providing transparency to investors and the market.
In other recent news, Chart Industries has been the focus of several analyst updates. Morgan Stanley (NYSE:MS) upgraded the company's stock from Equalweight to Overweight, citing the company's limited exposure to oil and focus on natural gas and renewable applications. This upgrade came in the wake of Chart Industries' merger with Howden, which bolstered the company's portfolio stability and growth potential.
Stifel, on the other hand, maintained its Buy rating on Chart Industries despite a drop in guidance due to revenue recognition delays. The firm expects the approved commencement of the Venture Global's CP2 LNG project to enhance Chart Industries' cash flows for the remainder of the year.
Citi also maintained a Buy rating but lowered its price target for Chart Industries from $210 to $190 due to backlog conversion challenges. This adjustment followed Chart Industries' Q2 2024 earnings, which fell short of expectations, leading to a reduction in the full-year 2024 EBITDA guidance.
In the same quarter, Chart Industries announced a 12% increase in orders to $1.16 billion and an 18.8% rise in sales to $1.04 billion. Despite these strong performance numbers, the company's full-year 2024 sales are expected to fall short of both the consensus estimate and the company's own guidance. These are the recent developments that investors should take into account.
InvestingPro Insights
Following the recent insider purchase by director Linda Harty, Chart Industries Inc. (NASDAQ:GTLS) exhibits a mix of financial metrics and analyst expectations that can provide a deeper understanding of the company's current standing. According to InvestingPro data, Chart Industries has a market capitalization of approximately $4.22 billion. The company's revenue has grown significantly over the last twelve months as of Q2 2024, with a 70.25% increase, indicating robust sales performance in the energy and industrial gas markets.
InvestingPro Tips highlight that analysts expect net income growth and sales growth for Chart Industries in the current year, which could be a contributing factor to the insider's confidence in the company. Additionally, the company's stock price has experienced significant volatility, with a price decrease of over 18% in the last three months, potentially offering a more attractive entry point for investors like Harty.
While Chart Industries operates with a significant debt burden, as one InvestingPro Tip points out, the company is predicted to be profitable this year. With a current P/E ratio of 194.42, the stock is trading at a high earnings multiple, which may suggest expectations of continued growth or a premium for the company's market position.
For investors seeking more detailed analysis and additional insights, InvestingPro offers more tips on Chart Industries. There are currently 10 additional InvestingPro Tips available, which can provide further guidance on the company's financial health and market performance.
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