Chart Industries CEO Linda Harty Buys $240,000 in Investing.com Depository Shares

In a recent transaction, Linda Harty, director at Graphic industries Inc. (NASDAQ:NYSE: ), bought warehouse stock valued at approximately $240,000. This move, recorded on September 16, 2024, signals a notable buyout from a key member of the company’s board.

Harty purchased 5,000 depositary shares at a price of $48.0459 each. These securities are not common stock, but represent an interest in the Company’s 6.75% Series B Mandatory Convertible Preferred Stock. As a result of this transaction, Harty’s direct holdings in depository shares amount to 5,000.

The Depositary Shares in question are each equivalent to 1/20th of a share of the Company’s Mandatory Convertible Preference Shares. On the mandatory conversion date, each share of such 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 from 7.0520 to 8.4620 shares of common stock per share of mandatory convertible preferred stock.

Investors and industry watchers often look to insider trades like these for signals about a company’s prospects. While a director’s buyout does not always predict future stock movement, it can indicate confidence in the company’s value and future performance.

Headquartered in Ball (NYSE:) Ground, Georgia, Chart Industries specializes in the manufacture of highly engineered equipment serving multiple applications in the power and industrial gas markets. The company’s shares, trading under the ticker symbol GTLS, are followed by investors interested in the fabricated plate works sector.

As with all insider transactions, this acquisition 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 upgraded the company’s stock from Equalweight to Overweight, citing the company’s limited exposure to oil and focus on renewable applications. This update follows Chart Industries’ merger with Howden, which has supported the company’s portfolio stability and growth potential.

Stifel, on the other hand, maintained its buy rating on Chart Industries despite a decline in guidance due to revenue recognition delays. The firm expects the approved start-up of Venture Global’s CP2 LNG project to improve Chart Industries’ cash flows for the rest of the year.

Citi also maintained a buy rating but cut its price target on Chart Industries from $210 to $190 due to pending conversion challenges. This adjustment followed Chart Industries’ Q2 2024 earnings that came in below expectations, leading to a reduction in full-year 2024 EBITDA guidance.

In the same quarter, Chart Industries reported a 12% increase in orders to $1.16 billion and an 18.8% increase in sales to $1.04 billion. Despite these strong performance numbers, the company’s full-year 2024 sales are expected to miss both the consensus estimate and the company’s own guidance. These are the recent developments that investors should keep in mind.

InvestingPro Insights

Following the recent acquisition by director Linda Harty, Chart Industries Inc. (NASDAQ:GTLS) presents a combination of financial metrics and analyst expectations that can provide a deeper understanding of the company’s current situation. According to InvestingPro data, Chart Industries has a market capitalization of approximately $4.22 billion. The company’s revenue has grown significantly over the past twelve months from Q2 2024, with a growth of 70.25%, indicating robust sales performance in the power and industrial gas markets.

InvestingPro Tips points out that analysts expect Chart Industries to post higher net income and higher sales this year, which could be a factor contributing to insider confidence in the company. Additionally, the company’s share price has seen significant volatility, with the price down more than 18% over the past three months, potentially providing a more attractive entry point for investors like Harty.

While Chart Industries is operating under a significant debt burden, as an InvestingPro tip points out, the company is expected to be profitable this year. With a current P/E ratio of 194.42, the stock is trading at a high multiple to earnings, which may suggest continued growth expectations or a premium to the company’s market position.

For investors who want more detailed analysis and additional information, InvestingPro offers more advice on Chart Industries. There are currently 10 additional InvestingPro tips available that can provide additional guidance on company financial health and market performance.

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