Mativ (NYSE:MATV) Shares Gap Up on Better-Than-Expected Earnings

Key Points

• Mativ beat quarterly expectations, reporting earnings per share of $0.50 versus the $0.28 consensus estimate and revenue of $531.8 million compared with forecasts of $508.5 million.
• The earnings surprise drove the stock sharply higher: shares opened at $10.74 versus a prior close of $9.57 and were last reported up 17.7% at $11.14.
• Mativ declared a quarterly dividend of $0.10, equivalent to $0.40 annually and a 3.5% yield. Despite institutional ownership of nearly 95%, analysts’ consensus rating remains “Reduce.”

Shares of Mativ Holdings, Inc. (NYSE:MATV - Get Free Report) gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $9.57, but opened at $10.74. Mativ shares last traded at $11.1370, with a volume of 117,474 shares traded.

The company reported $0.50 earnings per share for the quarter, topping the consensus estimate of $0.28 by $0.22. Mativ had a return on equity of 11.77% and a net margin of 3.86%.The business had revenue of $531.80 million during the quarter, compared to analysts' expectations of $508.50 million.

Mativ Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Investors of record on Friday, August 28th will be paid a $0.10 dividend. The ex-dividend date of this dividend is Friday, August 28th. This represents a $0.40 dividend on an annualized basis and a yield of 3.5%. Mativ's dividend payout ratio is 29.85%.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on MATV shares. Wall Street Zen downgraded shares of Mativ from a "strong-buy" rating to a "buy" rating in a research report on Sunday. Weiss Ratings upgraded shares of Mativ from a "sell (d-)" rating to a "sell (d+)" rating in a research note on Monday, May 11th. One research analyst has rated the stock with a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Reduce".

Institutional Investors Weigh In On Mativ

A number of hedge funds and other institutional investors have recently bought and sold shares of MATV. Millennium Management LLC grew its stake in Mativ by 1,978.4% during the 1st quarter. Millennium Management LLC now owns 996,673 shares of the company's stock worth $6,209,000 after buying an additional 948,720 shares during the last quarter. UBS Group AG raised its stake in Mativ by 144.9% in the third quarter. UBS Group AG now owns 688,273 shares of the company's stock valued at $7,784,000 after buying an additional 407,275 shares during the last quarter. Nomura Holdings Inc. acquired a new stake in Mativ in the second quarter worth about $2,450,000. Zacks Investment Management purchased a new stake in shares of Mativ during the third quarter worth about $3,561,000. Finally, Arrowstreet Capital Limited Partnership increased its holdings in shares of Mativ by 376.6% during the third quarter. Arrowstreet Capital Limited Partnership now owns 350,575 shares of the company's stock valued at $3,965,000 after acquiring an additional 277,021 shares in the last quarter. Hedge funds and other institutional investors own 94.95% of the company's stock.

Mativ Trading Up 17.7%

The stock has a market cap of $621.06 million, a price-to-earnings ratio of 8.38 and a beta of 0.87. The company has a debt-to-equity ratio of 2.22, a current ratio of 2.26 and a quick ratio of 1.12. The company's fifty day moving average price is $8.03 and its 200-day moving average price is $9.51.

Mativ Company Profile

Mativ is a global supplier of specialty fiber-based materials and engineered solutions, established in April 2021 through the spin-off of Ahlstrom-Munksjö’s global filtration and engineered materials business. Trading on the New York Stock Exchange under the ticker MATV, the company focuses on designing and manufacturing high-performance products for a broad range of end markets, including life sciences, energy storage, industrial filtration, and consumer products.

Through its Advanced Solutions segment, Mativ produces innovative materials such as lithium-ion battery separators, specialty release liners, and pressure-sensitive adhesive tapes.

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