Is it a Wise Move to Invest in CONSOL Energy (CEIX)? - InvestingChannel

Is it a Wise Move to Invest in CONSOL Energy (CEIX)?

Greenlight Capital, an investment management firm, released its third quarter 2023 investor letter, a copy of which can be downloaded here. In the third quarter of 2023, the Greenlight Capital funds achieved a net return of 12.9%, factoring in fees and expenses. Over the initial nine months of 2023, the net return stood at 27.7%, as opposed to a -3.3% return and a 13.1% return for the S&P 500 index during the same periods, respectively. Take a moment to review the fund’s top 5 holdings to gain insights into their primary investment choices for 2023.

In its Q3 2023 investor letter, Greenlight Capital mentioned CONSOL Energy Inc. (NYSE:CEIX) and explained its insights for the company. CONSOL Energy Inc. (NYSE:CEIX) is a Canonsburg, Pennsylvania-based coal mining company with a $3.1 billion market capitalization. CONSOL Energy Inc. (NYSE:CEIX) delivered a 55.60% return since the beginning of the year, while its 12-month returns are up by 62.76%. The stock closed at $101.14 per share on November 17, 2023.

Here is what Greenlight Capital has to say about CONSOL Energy Inc. (NYSE:CEIX) in its Q3 2023 investor letter:

CEIX shares advanced from $67.81 to $104.91 during the quarter, despite no obvious fundamental developments. It was a favorable period for energy stocks (more on that below), and CEIX abandoned its dividend in order to increase its share repurchases. With earnings expected to be over $21 per share in 2023, it is proving to be a challenge for the stock to maintain such a measly P/E multiple in the face of such a large buyback. One can make a great return when a P/E multiple expands from 3x to 5x… might 8x be too much to hope for?”

A close-up of a uranium mining site, the hardworking miners working underground to extract uranium resources.

Our calculations show that CONSOL Energy Inc. (NYSE:CEIX) does not belong on our list of the 30 Most Popular Stocks Among Hedge Funds. CONSOL Energy Inc. (NYSE:CEIX) was in 28 hedge fund portfolios at the end of the second quarter of 2023, compared to 33 funds in the previous quarter. CONSOL Energy Inc. (NYSE:CEIX) delivered a 20.33% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q3 2023 page.

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Disclosure: None. This article is originally published at Insider Monkey.

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