Matson (NYSE:MATX) Shares Gap Up Following Better-Than-Expected Earnings

Key Points

• Matson, Inc. reported a quarterly earnings per share of $2.92, exceeding the consensus estimate of $2.18, despite a 2% year-over-year revenue decline to $830.50 million.
• The company's quarterly dividend has increased from $0.34 to $0.36 per share, with an annualized yield of 1.3%.
• Several analysts have downgraded Matson's stock rating recently, with price targets adjusted downwards, providing an average target of $131.67.

Matson, Inc. (NYSE:MATX - Get Free Report)'s share price gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $106.78, but opened at $114.49. Matson shares last traded at $110.32, with a volume of 69,082 shares traded.

The shipping company reported $2.92 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.18 by $0.74. Matson had a net margin of 14.26% and a return on equity of 18.90%. The firm had revenue of $830.50 million for the quarter, compared to the consensus estimate of $727.30 million. During the same period in the prior year, the firm posted $3.31 earnings per share. The company's revenue for the quarter was down 2.0% on a year-over-year basis.

Matson Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 4th. Shareholders of record on Thursday, August 7th will be paid a $0.36 dividend. This is a boost from Matson's previous quarterly dividend of $0.34. This represents a $1.44 annualized dividend and a yield of 1.3%. The ex-dividend date of this dividend is Thursday, August 7th. Matson's payout ratio is presently 9.20%.

Analyst Ratings Changes

MATX has been the subject of several analyst reports. Wall Street Zen cut Matson from a "buy" rating to a "hold" rating in a report on Wednesday, May 7th. Stephens lowered their price target on shares of Matson from $175.00 to $150.00 and set an "overweight" rating for the company in a report on Tuesday, May 6th. Stifel Nicolaus cut their price target on shares of Matson from $160.00 to $130.00 and set a "hold" rating on the stock in a report on Tuesday, May 6th. Finally, Jefferies Financial Group reaffirmed a "hold" rating and set a $115.00 price objective on shares of Matson in a research note on Friday. Four research analysts have rated the stock with a hold rating and one has given a buy rating to the stock. Based on data from MarketBeat, Matson presently has a consensus rating of "Hold" and a consensus price target of $131.67.

Insider Buying and Selling

In related news, Director Bradley D. Tilden purchased 2,752 shares of Matson stock in a transaction dated Thursday, May 29th. The stock was purchased at an average cost of $111.76 per share, for a total transaction of $307,563.52. Following the completion of the acquisition, the director directly owned 8,180 shares of the company's stock, valued at $914,196.80. The trade was a 50.70% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, SVP Laura L. Rascon sold 1,700 shares of the business's stock in a transaction that occurred on Tuesday, May 13th. The stock was sold at an average price of $118.19, for a total transaction of $200,923.00. Following the completion of the transaction, the senior vice president owned 14,712 shares of the company's stock, valued at approximately $1,738,811.28. The trade was a 10.36% decrease in their ownership of the stock. The disclosure for this sale can be found here. 2.05% of the stock is currently owned by insiders.

Institutional Trading of Matson

A number of institutional investors and hedge funds have recently modified their holdings of the business. Jennison Associates LLC increased its holdings in Matson by 24.7% in the 2nd quarter. Jennison Associates LLC now owns 8,485 shares of the shipping company's stock worth $945,000 after buying an additional 1,682 shares in the last quarter. Y Intercept Hong Kong Ltd boosted its holdings in Matson by 804.0% in the second quarter. Y Intercept Hong Kong Ltd now owns 32,671 shares of the shipping company's stock worth $3,638,000 after purchasing an additional 29,057 shares during the last quarter. Envestnet Asset Management Inc. boosted its holdings in Matson by 2.9% in the second quarter. Envestnet Asset Management Inc. now owns 99,506 shares of the shipping company's stock worth $11,080,000 after purchasing an additional 2,837 shares during the last quarter. Linden Thomas Advisory Services LLC grew its position in Matson by 5.4% in the 2nd quarter. Linden Thomas Advisory Services LLC now owns 28,982 shares of the shipping company's stock worth $3,227,000 after purchasing an additional 1,479 shares during the period. Finally, BlueChip Wealth Advisors LLC bought a new position in shares of Matson during the 2nd quarter valued at $294,000. Institutional investors own 84.76% of the company's stock.

Matson Stock Up 1.5%

The company has a market cap of $3.54 billion, a P/E ratio of 7.33 and a beta of 1.22. The company has a quick ratio of 0.86, a current ratio of 0.78 and a debt-to-equity ratio of 0.13. The company has a fifty day moving average of $111.06 and a 200 day moving average of $119.54.

Matson Company Profile

Matson, Inc, together with its subsidiaries, engages in the provision of ocean transportation and logistics services. It operates through two segments, Ocean Transportation and Logistics. The Ocean Transportation segment offers ocean freight transportation services to the domestic non-contiguous economies of Hawaii, Japan, Alaska, and Guam, as well as to other island economies in Micronesia.