Matson (NYSE:MATX) Trading Up 6.9% - Time to Buy?

Key Points

• Matson shares jumped 6.9% on Thursday, reaching an intraday high of $223.17 and trading well above its previous close of $208.90.
• Recent earnings showed mixed results: EPS beat estimates at $1.85 versus $1.65 expected, but revenue came in below forecasts at $757.8 million and was down 3.1% year over year.
• The company raised its quarterly dividend to $0.38 per share from $0.36, while analysts currently view the stock as a Moderate Buy with a consensus target price of $181.25.

Shares of Matson, Inc. (NYSE:MATX - Get Free Report) shot up 6.9% on Thursday . The company traded as high as $223.17 and last traded at $223.3450. Approximately 46,675 shares changed hands during mid-day trading, a decline of 84% from the average session volume of 284,627 shares. The stock had previously closed at $208.90.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on MATX. Weiss Ratings restated a "hold (c)" rating on shares of Matson in a report on Friday, May 29th. Zacks Research raised shares of Matson to a "hold" rating in a research report on Wednesday, April 29th. Finally, JPMorgan Chase & Co. began coverage on shares of Matson in a research note on Monday, April 27th. They issued an "overweight" rating and a $230.00 target price on the stock. Three research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $181.25.

Matson Trading Up 10.4%

The company has a debt-to-equity ratio of 0.11, a quick ratio of 0.82 and a current ratio of 0.82. The company's fifty day simple moving average is $192.07 and its 200-day simple moving average is $170.20. The company has a market capitalization of $6.98 billion, a P/E ratio of 16.89 and a beta of 1.28.

Matson (NYSE:MATX - Get Free Report) last posted its quarterly earnings results on Monday, May 4th. The shipping company reported $1.85 EPS for the quarter, beating the consensus estimate of $1.65 by $0.20. Matson had a net margin of 12.92% and a return on equity of 15.90%. The business had revenue of $757.80 million during the quarter, compared to analyst estimates of $777.55 million. During the same quarter in the previous year, the business posted $2.18 EPS. The company's quarterly revenue was down 3.1% compared to the same quarter last year. Research analysts predict that Matson, Inc. will post 14.16 earnings per share for the current year.

Matson Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 3rd. Investors of record on Thursday, August 6th will be paid a $0.38 dividend. This represents a $1.52 dividend on an annualized basis and a yield of 0.7%. This is a positive change from Matson's previous quarterly dividend of $0.36. The ex-dividend date of this dividend is Thursday, August 6th. Matson's payout ratio is presently 10.58%.

Insider Buying and Selling

In other news, EVP Peter T. Heilmann sold 7,173 shares of the business's stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $180.19, for a total value of $1,292,502.87. Following the completion of the transaction, the executive vice president directly owned 25,506 shares of the company's stock, valued at approximately $4,595,926.14. The trade was a 21.95% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, SVP Kuuhaku T. Park sold 2,500 shares of the company's stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $180.19, for a total value of $450,475.00. Following the sale, the senior vice president owned 10,984 shares of the company's stock, valued at $1,979,206.96. This trade represents a 18.54% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 23,963 shares of company stock valued at $4,349,268 over the last ninety days. Company insiders own 2.51% of the company's stock.

Hedge Funds Weigh In On Matson

A number of large investors have recently added to or reduced their stakes in MATX. Handelsbanken Fonder AB lifted its position in shares of Matson by 4.5% during the second quarter. Handelsbanken Fonder AB now owns 9,200 shares of the shipping company's stock valued at $1,769,000 after buying an additional 400 shares during the last quarter. Assenagon Asset Management S.A. bought a new position in shares of Matson during the 2nd quarter worth approximately $3,430,000. GAMMA Investing LLC lifted its position in Matson by 3.4% during the second quarter. GAMMA Investing LLC now owns 2,402 shares of the shipping company's stock valued at $462,000 after acquiring an additional 80 shares during the last quarter. Bank of America Corp DE lifted its position in Matson by 12.6% during the first quarter. Bank of America Corp DE now owns 200,926 shares of the shipping company's stock valued at $32,940,000 after acquiring an additional 22,516 shares during the last quarter. Finally, Edgestream Partners L.P. boosted its stake in Matson by 24.0% in the first quarter. Edgestream Partners L.P. now owns 45,745 shares of the shipping company's stock valued at $7,499,000 after acquiring an additional 8,860 shares in the last quarter. 84.76% of the stock is currently owned by institutional investors.

Matson Company Profile

Matson, Inc NYSE: MATX is a U.S.-based provider of ocean transportation and supply chain logistics services with a focus on Pacific trade lanes. The company operates a fleet of container ships that regularly service Hawaii, Alaska, Guam, Micronesia and other Pacific islands, as well as mainland U.S. ports. Matson's ocean transportation segment offers scheduled liner services, expedited shipping options and specialized project cargo handling for industries ranging from retail to heavy machinery.

In addition to its core liner operations, Matson offers ocean transportation services between Asia and the U.S.

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