Matson (NYSE:MATX) Shares Gap Up Following Strong 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) shares gapped up prior to trading on Friday following a stronger than expected earnings report. 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 EPS for the quarter, beating the consensus estimate of $2.18 by $0.74. The firm had revenue of $830.50 million during the quarter, compared to the consensus estimate of $727.30 million. Matson had a return on equity of 18.90% and a net margin of 14.26%. The firm's revenue was down 2.0% compared to the same quarter last year. During the same period in the prior year, the business earned $3.31 EPS.

Matson Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 4th. Investors of record on Thursday, August 7th will be paid a $0.36 dividend. This represents a $1.44 annualized dividend and a yield of 1.3%. The ex-dividend date of this dividend is Thursday, August 7th. This is an increase from Matson's previous quarterly dividend of $0.34. Matson's dividend payout ratio (DPR) is 9.20%.

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on the company. Wall Street Zen downgraded Matson from a "buy" rating to a "hold" rating in a research note on Wednesday, May 7th. Stifel Nicolaus reduced their target price on Matson from $160.00 to $130.00 and set a "hold" rating on the stock in a report on Tuesday, May 6th. Stephens reduced their price objective on Matson from $175.00 to $150.00 and set an "overweight" rating on the stock in a research note on Tuesday, May 6th. Finally, Jefferies Financial Group reiterated a "hold" rating and issued a $115.00 price target on shares of Matson in a research note on Friday. Four analysts have rated the stock with a hold rating and one has assigned a buy rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $131.67.

Insider Activity

In other news, SVP Leonard P. Isotoff sold 500 shares of the company's stock in a transaction that occurred on Wednesday, May 28th. The stock was sold at an average price of $111.47, for a total transaction of $55,735.00. Following the completion of the transaction, the senior vice president directly owned 5,644 shares of the company's stock, valued at approximately $629,136.68. This represents a 8.14% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Bradley D. Tilden bought 2,752 shares of the stock in a transaction dated Thursday, May 29th. The shares were bought at an average cost of $111.76 per share, with a total value of $307,563.52. Following the completion of the acquisition, the director directly owned 8,180 shares of the company's stock, valued at approximately $914,196.80. The trade was a 50.70% increase in their position. The disclosure for this purchase can be found here. Corporate insiders own 2.05% of the company's stock.

Hedge Funds Weigh In On Matson

A number of institutional investors and hedge funds have recently added to or reduced their stakes in MATX. GAMMA Investing LLC lifted its position in Matson by 11.7% in the first quarter. GAMMA Investing LLC now owns 1,373 shares of the shipping company's stock worth $176,000 after purchasing an additional 144 shares during the period. JPMorgan Chase & Co. lifted its position in Matson by 12.6% in the fourth quarter. JPMorgan Chase & Co. now owns 323,124 shares of the shipping company's stock worth $43,570,000 after purchasing an additional 36,156 shares during the period. SG Americas Securities LLC acquired a new stake in Matson in the first quarter worth approximately $507,000. Envestnet Asset Management Inc. grew its stake in shares of Matson by 8.9% in the 1st quarter. Envestnet Asset Management Inc. now owns 96,669 shares of the shipping company's stock worth $12,390,000 after purchasing an additional 7,920 shares during the last quarter. Finally, Ameriprise Financial Inc. grew its stake in shares of Matson by 73.9% in the 4th quarter. Ameriprise Financial Inc. now owns 416,473 shares of the shipping company's stock worth $56,157,000 after purchasing an additional 177,000 shares during the last quarter. 84.76% of the stock is owned by institutional investors.

Matson Price Performance

The company's 50 day moving average price is $111.06 and its 200-day moving average price is $119.39. The company has a market cap of $3.64 billion, a price-to-earnings ratio of 7.54 and a beta of 1.22. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.86 and a current ratio of 0.78.

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.