Matthews International (NASDAQ:MATW) Sees Strong Trading Volume - What's Next?

Key Points

• Trading activity surged: Matthews International shares traded 492,958 shares, up 89% from the prior session, while the stock fell to $22.658 from a $23.70 close.
• Analyst sentiment remains bearish: Wall Street Zen downgraded the stock to “sell,” Weiss Ratings reaffirmed a “sell (D+)” rating, and the consensus rating is “Reduce.”
• Quarterly results missed expectations: Matthews reported $0.06 in EPS versus the $0.41 estimate and revenue of $246.02 million versus $264.54 million expected. The company declared a quarterly dividend of $0.255, implying a 4.5% annualized yield.

Matthews International Corporation (NASDAQ:MATW - Get Free Report) saw unusually-high trading volume on Monday . 492,958 shares were traded during trading, an increase of 89% from the previous session's volume of 260,550 shares.The stock last traded at $22.6580 and had previously closed at $23.70.

Analysts Set New Price Targets

Several equities research analysts recently issued reports on MATW shares. Wall Street Zen downgraded Matthews International from a "hold" rating to a "sell" rating in a report on Saturday. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Matthews International in a research report on Monday, August 3rd. One equities research analyst has rated the stock with a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Matthews International presently has a consensus rating of "Reduce".

Matthews International Price Performance

The company's 50-day simple moving average is $26.73 and its 200 day simple moving average is $26.58. The company has a market cap of $711.03 million, a PE ratio of -24.50 and a beta of 1.09. The company has a debt-to-equity ratio of 1.15, a quick ratio of 1.02 and a current ratio of 1.76.

Matthews International (NASDAQ:MATW - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The company reported $0.06 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.41 by ($0.35). The company had revenue of $246.02 million during the quarter, compared to analyst estimates of $264.54 million. Matthews International had a negative net margin of 2.65% and a positive return on equity of 4.51%. On average, sell-side analysts predict that Matthews International Corporation will post 1.09 earnings per share for the current fiscal year.

Matthews International Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, August 24th. Shareholders of record on Monday, August 10th will be given a $0.255 dividend. The ex-dividend date of this dividend is Monday, August 10th. This represents a $1.02 dividend on an annualized basis and a yield of 4.5%. Matthews International's dividend payout ratio (DPR) is currently -109.68%.

Institutional Trading of Matthews International

Hedge funds have recently added to or reduced their stakes in the company. Ameriprise Financial Inc. grew its holdings in Matthews International by 9.0% during the 2nd quarter. Ameriprise Financial Inc. now owns 1,664,426 shares of the company's stock worth $39,796,000 after acquiring an additional 137,015 shares in the last quarter. Dimensional Fund Advisors LP lifted its position in shares of Matthews International by 5.5% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,614,201 shares of the company's stock worth $41,677,000 after buying an additional 83,860 shares during the last quarter. Gamco Investors INC. ET AL lifted its position in Matthews International by 9.7% in the fourth quarter. Gamco Investors INC. ET AL now owns 1,554,105 shares of the company's stock valued at $40,593,000 after acquiring an additional 136,794 shares during the last quarter. Allspring Global Investments Holdings LLC boosted its position in shares of Matthews International by 2.4% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 1,100,957 shares of the company's stock valued at $27,832,000 after purchasing an additional 25,478 shares during the period. Finally, Private Capital Management LLC boosted its holdings in shares of Matthews International by 201.1% in the fourth quarter. Private Capital Management LLC now owns 1,018,587 shares of the company's stock valued at $26,605,000 after acquiring an additional 680,256 shares during the period. Institutional investors and hedge funds own 83.08% of the company's stock.

About Matthews International

Matthews International Corporation NASDAQ: MATW is a diversified industrial company headquartered in Pittsburgh, Pennsylvania. The company operates through two primary business segments—Brand Solutions and Memorialization—offering a broad range of products and services designed to meet the needs of industrial manufacturers, brand marketers and the funeral industry worldwide.

In its Brand Solutions segment, Matthews International provides engraving and digital printing systems, automated finishing equipment, thermal management products and electronics assembly solutions.

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