Empowered Funds LLC Invests in ChampionX: A Deep Dive into the Company’s Earnings
June 19, 2023 – Empowered Funds LLC, a notable investment firm, has recently increased its presence in the energy sector by acquiring a new stake in ChampionX Corp. (NASDAQ:CHX). According to the company’s Form 13F filing with the U.S. Securities and Exchange Commission (SEC), Empowered Funds purchased 85,964 shares of CHX stock for a total value of $2,332,000.
This move comes as no surprise given that ChampionX Corp. is one of the world’s leading providers of chemistry programs and services for upstream oil and natural gas production. The company operates through four segments: Production Chemical Technologies, Production and Automation Technologies, Drilling Technologies, and Reservoir Chemical Technologies.”
However, what really caught investors’ attention was the company’s earnings report for the first quarter of 2023. On April 25th, ChampionX Corp. announced that it had achieved an EPS of $0.36 for Q1 2023; this figure was in line with analysts’ consensus estimate. The company’s quarterly revenue stood at $948.35 million as opposed to the expected $965.93 million.
Despite not exceeding expectations regarding revenue figures, ChampionX Corp’s net margin stood at an impressive 4.68%, showcasing that it knows how to create strong returns on investment while mitigating risks effectively. Moreover, its return on equity (ROE) was upstanding at 16.87% which is well ahead of most industries’ average return rate.
ChampionX’s CEO Benjamin Saitz mentioned in their earnings call that “Our ongoing commitment to innovation and efficiency improvements have allowed us to maintain our growth trajectory despite challenging market conditions.” Despite volatile markets lately due to worldwide environmental regulations movement negatively affecting sales numbers throughout various organizations within sectors like oil, natural gas sectors, and sectors related to this one, ChampionX has continued to perform well.
The company’s quarterly revenue also showed a YoY growth of 9.5%; this can be credited to the adoption of innovative programs in numerous segments like automation technologies that have been able to generate new business for the company. In Q1 2023 alone they managed to outperform previous-year sales by $82 million.
As investors take notice of the impressive financial performance from ChampionX corp., it is expected that further investments will pour into the oil and natural gas sector as we continue into this decade. Despite environmental regulations proving a downside in certain sectors lately, there continues to be an abundant amount of investment opportunities rising within others, which empowers businesses such as ChampionX Corp., propelling them forward as they strive towards sustained excellence in earnings results.
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Institutional Investors Show Interest in ChampionX Corp, Fueling Growth in Oil and Gas Industry
ChampionX Corp, a leading provider of chemistry programs and services for the global upstream oil and natural gas industry, has been attracting institutional investors in recent months. The company’s recent financial reports indicate that Bessemer Group Inc., Balyasny Asset Management LLC, Brown Advisory Inc., Earnest Partners LLC, and State Street Corp have all recently acquired new positions in shares of ChampionX.
Bessemer Group Inc. made headlines by buying shares worth $62,568,000 during the fourth quarter of last year. Meanwhile, Balyasny Asset Management invested $31,134,000 in ChampionX during the third quarter. Brown Advisory increased its holdings by 15.2% during the fourth quarter and now owns 7,061,760 shares of ChampionX stock valued at $204,720,000. Earnest Partners also raised its holdings by 1,936,212.2% during Q4 by investing a sum of $23,015,000 to acquire an additional 793,847 shares.
Finally, State Street Corp raised its holdings in ChampionX by 9.4% during the first quarter this year after purchasing an additional 606K shares valued at $172.69 million. Together these institutional investors represent a staggering total of 98.46% ownership in the company’s stock.
Currently trading at around $28 per share with a market capitalization of over $5 billion dollars and PEG ratio below 1; ChampionX seems to be an attractive investment opportunity for savvy investors looking to add value to their portfolios.
Furthermore ChampionX has impressive quarterly dividend payouts ($0.085 per share), which are due on July 28th this year with shareholders as of Friday July 7th being eligible for this payment.Standard & Poor’s (S&P)100 Index further ranked ChampioX as one of top five energy stocks thanks to its steady growth curve in Q1 of 2023.
Investment analysts have praised ChampionX’s financial prospects, giving them an average rating of “Moderate Buy” and an average price target of $30.80. Citigroup analysts cut their original price target of the company from $41 to $40 recently while still backing a buy rating for its stock. TheStreet report also upgraded shares of ChampionX from a “c+” rating to a “b-“.
ChampionX appears poised for growth in the oil and gas industry, with investors showing confidence through consistent acquisition. Analysts urge investors to consider this company as it continues to grow and deliver solid results in the coming years.