On December 13, 2024, ORIX CORP (Trades, Portfolio) executed a significant transaction involving Ormat Technologies Inc (ORA, Financial), reducing its stake by 3,700,000 shares. The transaction was conducted at a price of $74.2 per share. This move marks a substantial shift in ORIX CORP (Trades, Portfolio)'s investment strategy concerning Ormat Technologies, a company known for its involvement in the geothermal energy sector. The reduction in shares represents a 53.45% decrease in ORIX CORP (Trades, Portfolio)'s position in Ormat Technologies, leaving the firm with 2,976,077 shares.
ORIX CORP (Trades, Portfolio): A Profile of Strategic Investment
ORIX CORP (Trades, Portfolio), headquartered at the WORLD TRADE CENTER BLDG. in Tokyo, is a prominent player in the investment sector. The firm is recognized for its strategic asset allocation and value investing philosophy. With current equity holdings valued at $514 million, ORIX CORP (Trades, Portfolio) has established itself as a significant entity in the financial markets. The firm's investment approach is characterized by a focus on long-term value creation, aligning with its recent decision to adjust its holdings in Ormat Technologies.
Ormat Technologies Inc: A Leader in Geothermal Energy
Ormat Technologies Inc is a key player in the geothermal energy power business, operating across three segments: Electricity, Product, and Energy Storage. With a market capitalization of $4.39 billion, Ormat Technologies is a significant entity within the Utilities - Independent Power Producers industry. The company's current stock price stands at $72.5, reflecting a modest undervaluation with a GF Value of $90.65. Ormat Technologies' focus on sustainable energy solutions positions it as a leader in its field, with a [GF-Score](https://www.gurufocus.com/term/gf-score/ORA) of 84/100, indicating good outperformance potential.
Impact of the Transaction on ORIX CORP (Trades, Portfolio)'s Portfolio
The reduction in ORIX CORP (Trades, Portfolio)'s stake in Ormat Technologies has significant implications for the firm's portfolio. The current holding of 2,976,077 shares now represents 4.90% of ORIX CORP (Trades, Portfolio)'s portfolio, maintaining Ormat Technologies as the firm's top holding. This strategic adjustment reflects ORIX CORP (Trades, Portfolio)'s ongoing evaluation of its investment positions, aligning with its broader investment philosophy. The transaction underscores the firm's commitment to optimizing its portfolio for long-term value.
Financial Metrics and Valuation Insights
Ormat Technologies exhibits a [Price-to-Earnings (PE) ratio](https://www.gurufocus.com/term/pe/ORA) of 36.99, with a [Price to GF Value](https://www.gurufocus.com/term/price-to-gf-value/ORA) ratio of 0.80, suggesting potential undervaluation. The company's year-to-date price change is -5.14%, while its 3-year revenue growth is 0.70%, and earnings growth is 17.10%. These metrics highlight Ormat Technologies' growth potential and financial stability, supported by a [Profitability Rank](https://www.gurufocus.com/term/rank-profitability/ORA) of 7/10 and a [Growth Rank](https://www.gurufocus.com/term/rank-growth/ORA) of 7/10.
Industry Position and Competitive Landscape
Operating within the Utilities - Independent Power Producers industry, Ormat Technologies is notable for its energy storage and geothermal power plant operations. The company's [Balance Sheet Rank](https://www.gurufocus.com/term/rank-balancesheet/ORA) is 4/10, reflecting moderate financial strength. Ormat Technologies' competitive position is further supported by its [Operating Margin](https://www.gurufocus.com/term/operating-margin/ORA) growth and strategic focus on sustainable energy solutions.
Other Notable Investors in Ormat Technologies
In addition to ORIX CORP (Trades, Portfolio), other significant investors in Ormat Technologies include GAMCO Investors, which holds the largest share percentage, and Joel Greenblatt (Trades, Portfolio). These investors' involvement underscores the attractiveness of Ormat Technologies as a strategic investment within the renewable energy sector.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
