Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What's happening: Industrial and cryogenic gas processing and handling equipment manufacturer Chart Industries' (NASDAQ:GTLS) stock dropped as much as 11% in early trading today, and as of this writing, around noon, is down 8.5%. Since Wednesday, the day before reporting first-quarter earnings, the stock is down about 13%:
Why it's happening: There isn't any Chart Industries-specific news out there, and trading volume on its stock isn't particularly high today. When there's not easily findable news tied to a big move like this, it's probably best not to read too much into it. However, so close to earnings, you can probably assign some of the responsibility to the company's results last quarter.
Earnings and sales were down due to both a challenging market environment and some foreign exchange pressures, and expenses were up due to a number of factors, including severance costs as the company works to reduce its workforce by 5% based on cyclical demand for its products. The company also announced it will take a $3 million charge next quarter to shutter one of its manufacturing facilities in Minnesota. Chances are, these factors are playing some role in the recent sell-off.
Even with the relatively poor earnings result, a lot of what the company is dealing with right now is cyclical in nature, versus long-term weakness in its business. If you're looking for more on Chart Industries' earnings, see my write-up here. It's a good place to start before you take any action yourself.