Is T1 Energy a Buy After Encompass Capital Advisors Increased Its Position by 21.5 Million Shares?
Key Points
Encompass purchased 21,504,901 shares of T1 Energy; estimated transaction value of $94.89 million based on quarterly average price.
Quarter-end position value increased by $204.24 million, reflecting both trading activity and stock price appreciation.
The trade represented a 3.87% change in 13F reportable assets under management.
The fund now holds 34,968,169 shares valued at $233.59 million.
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What happened
According to a filing with the U.S. Securities and Exchange Commission dated February 17, 2026, Encompass Capital Advisors LLC acquired 21,504,901 additional shares of T1 Energy (NYSE:TE). The estimated value of this transaction, based on the average closing price during the quarter, was $94.89 million. The quarter-end value of the position rose by $204.24 million, reflecting both the purchase and changes in the stock’s price.
What else to know
This buy increased the stake to 9.53% of the fund’s reportable U.S. equity assets as of December 31, 2025.
Top holdings after the filing:
- NYSE: TE: $112.20 million (5.4% of AUM)
- NYSE: SOC: $121.67 million (5.0% of AUM)
- NYSE: SEI: $117.66 million (4.8% of AUM)
- NASDAQ: FANG: $112.20 million (4.6% of AUM)
- NASDAQ: NESR: $111.24 million (4.5% of AUM)
As of February 17, 2026, shares of T1 Energy were priced at $6.44, up 211.1% over the past year, outperforming the S&P 500 by 200.71 percentage points.
Company overview
| Metric | Value |
|---|---|
| Price (as of market close February 17, 2026) | $6.44 |
| Market capitalization | $970.40 million |
| Revenue (TTM) | $399.68 million |
| Net income (TTM) | ($557.99 million) |
Company snapshot
- T1 Energy produces and sells lithium-ion battery cells for stationary energy storage, electric mobility, and marine applications, primarily serving European and international markets.
- It operates a vertically integrated business model, generating revenue through the design, manufacturing, and sale of proprietary battery cell solutions.
- The company targets OEMs and industrial customers seeking advanced energy storage technologies for mobility, grid, and marine sectors.
T1 Energy is a Luxembourg-based manufacturer specializing in lithium-ion battery cells, with a focus on energy storage and electrification markets. The company leverages advanced design and manufacturing capabilities to serve a diverse set of industrial and mobility clients globally.
What this transaction means for investors
The purchase of 21.5 million shares of T1 Energy by Encompass Capital Advisors is a noteworthy event. The buy meant Encompass raised its stake from 1% of assets under management in the third quarter to 9.5% in Q4, catapulting T1 Energy to the fund’s top holding.
This suggests Encompass has a bullish outlook towards T1 Energy. It’s understandable to see why given the rise of artificial intelligence.
AI requires massive amounts of computing capacity, and this has necessitated the construction of data centers. These facilities require energy to operate, resulting in demand for T1 Energy’s products.
The company’s share price is down from the 52-week high of $9.78 reached in January. While its forward price-to-sales ratio is up from a year ago, it’s dropped from the peak reached towards the end of 2025. So now is not a bad time to buy shares, given the potential revenue growth T1 Energy could achieve in the coming years.
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Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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