Zacks Investment Research cut shares of Methanex (NASDAQ:MEOH) (TSE:MX) from a buy rating to a hold rating in a research report released on Tuesday.
According to Zacks, “Methanex saw higher revenues and profits in first-quarter 2018, aided by higher methanol prices. However, earnings for the quarter missed the Zacks Consensus Estimate. The company has outperformed the industry it belongs to over a year. Methanex should gain from healthy demand fundamentals for methanol. The Louisiana project is expected to create significant value for shareholders and meaningfully contribute to cash generation. However, the company is still exposed to a volatile methanol pricing environment. Moreover, it continues to face headwinds due to curtailment of gas supply. Production outages are also affecting its operations.”
A number of other equities research analysts also recently issued reports on the stock. BidaskClub raised shares of Methanex from a buy rating to a strong-buy rating in a research report on Monday, May 14th. ValuEngine downgraded shares of Methanex from a strong-buy rating to a buy rating in a research report on Wednesday, May 2nd. Scotiabank set a $69.50 target price on shares of Methanex and gave the company a sector perform rating in a research report on Tuesday, May 1st. TD Securities increased their target price on shares of Methanex from $69.00 to $71.00 and gave the company a hold rating in a research report on Friday, April 27th. Finally, Royal Bank of Canada increased their target price on shares of Methanex from $67.00 to $70.00 and gave the company a sector perform rating in a research report on Thursday, April 26th. One research analyst has rated the stock with a sell rating, eight have assigned a hold rating, six have given a buy rating and one has assigned a strong buy rating to the stock. Methanex currently has an average rating of Hold and a consensus price target of $62.08.
Shares of MEOH stock opened at $70.35 on Tuesday. Methanex has a 52-week low of $39.47 and a 52-week high of $71.60. The company has a quick ratio of 1.29, a current ratio of 1.75 and a debt-to-equity ratio of 0.78. The stock has a market capitalization of $5.78 billion, a price-to-earnings ratio of 14.94, a PEG ratio of 0.89 and a beta of 1.63.
Methanex (NASDAQ:MEOH) (TSE:MX) last issued its quarterly earnings data on Wednesday, April 25th. The specialty chemicals company reported $2.03 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $2.08 by ($0.05). Methanex had a return on equity of 24.47% and a net margin of 11.00%. The firm had revenue of $962.00 million during the quarter, compared to the consensus estimate of $965.83 million. During the same period in the previous year, the company posted $1.56 earnings per share. The company’s revenue for the quarter was up 18.8% on a year-over-year basis. equities analysts expect that Methanex will post 5.28 EPS for the current year.
The business also recently announced a quarterly dividend, which will be paid on Saturday, June 30th. Stockholders of record on Saturday, June 16th will be given a dividend of $0.33 per share. This represents a $1.32 dividend on an annualized basis and a dividend yield of 1.88%. The ex-dividend date is Thursday, June 14th. Methanex’s dividend payout ratio is currently 28.03%.
Methanex declared that its board has approved a stock buyback program on Monday, March 5th that allows the company to repurchase 6,590,000 shares. This repurchase authorization allows the specialty chemicals company to purchase shares of its stock through open market purchases. Shares repurchase programs are often an indication that the company’s management believes its shares are undervalued.
A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. CIBC World Markets Inc. boosted its holdings in Methanex by 221.3% in the 1st quarter. CIBC World Markets Inc. now owns 465,430 shares of the specialty chemicals company’s stock worth $28,228,000 after buying an additional 320,567 shares during the period. Her Majesty the Queen in Right of the Province of Alberta as represented by Alberta Investment Management Corp boosted its holdings in Methanex by 0.7% in the 1st quarter. Her Majesty the Queen in Right of the Province of Alberta as represented by Alberta Investment Management Corp now owns 917,400 shares of the specialty chemicals company’s stock worth $71,603,000 after buying an additional 6,400 shares during the period. Millennium Management LLC boosted its holdings in Methanex by 521.2% in the 1st quarter. Millennium Management LLC now owns 134,345 shares of the specialty chemicals company’s stock worth $8,148,000 after buying an additional 112,719 shares during the period. Element Capital Management LLC bought a new position in Methanex in the 1st quarter worth approximately $429,000. Finally, Barclays PLC boosted its holdings in Methanex by 7,510.0% in the 1st quarter. Barclays PLC now owns 7,610 shares of the specialty chemicals company’s stock worth $462,000 after buying an additional 7,510 shares during the period. 79.45% of the stock is owned by institutional investors.
Methanex Company Profile
Methanex Corporation produces and sells methanol in North America, the Asia Pacific, Europe, and South America. It also purchases and sells methanol produced by others under methanol offtake contracts and on the spot market. The company was founded in 1968 and is headquartered in Vancouver, Canada.
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