Chou Associates Management Inc. Invests $924,000 in Methanex Corporation $MEOH

Key Points

• Chou Associates Management initiated a $924,000 position in Methanex, purchasing 20,000 shares in the second quarter. Institutional investors collectively own 73.49% of the company.
• Analyst sentiment is moderately positive, with six Buy ratings and five Holds, producing an average price target of $68.56 versus the stock’s $60.10 opening price.
• Methanex reported quarterly EPS of $3.87, slightly below the $4.00 consensus, while revenue rose 75% year over year to $1.40 billion. The company also declared a quarterly dividend of $0.185 per share, representing a 1.2% annualized yield.

Chou Associates Management Inc. bought a new position in shares of Methanex Corporation (NASDAQ:MEOH - Free Report) TSE: MX in the second quarter, according to the company in its most recent filing with the SEC. The firm bought 20,000 shares of the specialty chemicals company's stock, valued at approximately $924,000. Methanex makes up approximately 0.4% of Chou Associates Management Inc.'s investment portfolio, making the stock its 22nd biggest position.

Several other institutional investors have also recently added to or reduced their stakes in the company. Public Employees Retirement System of Ohio boosted its position in Methanex by 0.3% in the first quarter. Public Employees Retirement System of Ohio now owns 82,381 shares of the specialty chemicals company's stock valued at $4,892,000 after buying an additional 225 shares in the last quarter. AMG National Trust Bank increased its holdings in shares of Methanex by 4.8% during the first quarter. AMG National Trust Bank now owns 8,127 shares of the specialty chemicals company's stock worth $484,000 after buying an additional 374 shares in the last quarter. NewEdge Advisors LLC increased its holdings in shares of Methanex by 33.3% during the third quarter. NewEdge Advisors LLC now owns 2,000 shares of the specialty chemicals company's stock worth $80,000 after buying an additional 500 shares in the last quarter. Parkside Financial Bank & Trust increased its holdings in shares of Methanex by 61.0% during the fourth quarter. Parkside Financial Bank & Trust now owns 2,143 shares of the specialty chemicals company's stock worth $85,000 after buying an additional 812 shares in the last quarter. Finally, Franklin Resources Inc. raised its stake in shares of Methanex by 8.2% in the fourth quarter. Franklin Resources Inc. now owns 10,706 shares of the specialty chemicals company's stock valued at $425,000 after acquiring an additional 813 shares during the last quarter. 73.49% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on MEOH shares. Royal Bank Of Canada decreased their price target on Methanex from $70.00 to $65.00 and set a "sector perform" rating on the stock in a research report on Wednesday, July 1st. Canadian Imperial Bank of Commerce upgraded Methanex from a "neutral" rating to a "sector outperform" rating and lifted their price objective for the company from $69.00 to $71.00 in a research report on Monday, July 20th. Wall Street Zen lowered Methanex from a "strong-buy" rating to a "buy" rating in a research note on Saturday, August 15th. Scotiabank boosted their price objective on Methanex from $70.00 to $80.00 and gave the stock an "outperform" rating in a research note on Tuesday, May 5th. Finally, Zacks Research cut Methanex from a "strong-buy" rating to a "hold" rating in a report on Monday, June 22nd. Six equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $68.56.

Methanex Trading Up 2.4%

Shares of NASDAQ MEOH opened at $60.10 on Friday. Methanex Corporation has a 1-year low of $32.00 and a 1-year high of $66.75. The company has a 50-day moving average of $52.79 and a two-hundred day moving average of $55.32. The company has a market cap of $4.65 billion, a PE ratio of 58.35 and a beta of 0.58. The company has a current ratio of 2.07, a quick ratio of 1.35 and a debt-to-equity ratio of 0.83.

Methanex (NASDAQ:MEOH - Get Free Report) TSE: MX last issued its quarterly earnings results on Tuesday, July 28th. The specialty chemicals company reported $3.87 earnings per share for the quarter, missing analysts' consensus estimates of $4.00 by ($0.13). Methanex had a net margin of 2.07% and a return on equity of 11.35%. The company had revenue of $1.40 billion during the quarter, compared to analyst estimates of $1.43 billion. During the same period in the prior year, the business earned $0.97 EPS. The business's revenue for the quarter was up 75.0% on a year-over-year basis. As a group, equities analysts expect that Methanex Corporation will post 8.6 earnings per share for the current fiscal year.

Methanex Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Wednesday, September 16th will be given a $0.185 dividend. This represents a $0.74 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date is Wednesday, September 16th. Methanex's dividend payout ratio (DPR) is presently 71.84%.

Key Methanex News

Here are the key news stories impacting Methanex this week:

• Positive Sentiment: Zacks raised its FY2026 EPS forecast to $8.53 from $6.77 and its FY2027 forecast to $5.83 from $4.85. The firm also increased its Q3 2026 estimate to $3.10 from $1.92, Q4 2026 to $1.74 from $1.28, Q1 2027 to $2.22 from $0.58, and Q2 2027 to $2.06 from $1.59. These revisions suggest stronger near-term earnings momentum than previously expected.
• Positive Sentiment: Longer-term expectations also improved: Zacks lifted Q1 2028 EPS to $0.98 from $0.48, Q2 2028 to $2.02 from $1.34, and FY2028 to $4.35 from $3.65. The revisions provide a positive catalyst for MEOH by implying better profitability over several forecast periods.
• Positive Sentiment: Methanex refinanced its Natgasoline bonds, deferring mandatory amortization payments and improving cash-flow flexibility. That could help the company manage liquidity during a softer operating period. MEOH Refinances Natgasoline Bonds to Improve Financial Flexibility
• Neutral Sentiment: The estimate changes are not uniformly positive. Zacks cut Q3 2027 EPS to $0.73 from $1.45 and Q4 2027 EPS to $0.82 from $1.24, indicating potential earnings volatility beyond 2027.
• Neutral Sentiment: The refinancing announcement noted that third-quarter EBITDA is expected to decline, which could weigh on results even as improved debt terms provide additional financial flexibility.

Methanex Profile

Methanex Corporation is a Vancouver, Canada–based company and one of the world's largest producers and suppliers of methanol. The company manufactures methanol, a key feedstock for a wide range of chemical products and industrial applications. Methanex markets its product to customers in energy, plastics, paints and coatings, and various chemical sectors, positioning the company as a critical link in the global supply chain for basic chemicals.

The company's core product, methanol, serves as a building block for downstream chemicals such as formaldehyde, acetic acid and methyl tertiary butyl ether (MTBE).

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