Matthews International (NASDAQ:MATW) Shares Down 5.2% - Here's Why

Key Points

• Shares fell 5.2% to about $27.14 on Monday on very light volume (19,298 shares vs. a ~199,911 average), after closing at $28.61.
• Matthews reported an earnings beat for the quarter (EPS $0.37 vs. $0.17 expected and revenue $258.6M vs. $253.7M), while recent analyst moves have upgraded ratings but the consensus remains Hold.
• The company declared a quarterly dividend of $0.255 (annualized $1.02) for a 3.7% yield329%; valuation metrics include a P/E of ~88.5 and market cap of about $854M.

Matthews International Corporation (NASDAQ:MATW - Get Free Report) shares dropped 5.2% during trading on Monday . The company traded as low as $26.48 and last traded at $27.1350. Approximately 19,298 shares traded hands during mid-day trading, a decline of 90% from the average daily volume of 199,911 shares. The stock had previously closed at $28.61.

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on MATW. Weiss Ratings upgraded Matthews International from a "sell (d)" rating to a "hold (c)" rating in a research report on Friday, February 6th. Wall Street Zen upgraded Matthews International from a "hold" rating to a "buy" rating in a research report on Saturday. Finally, Zacks Research upgraded Matthews International from a "strong sell" rating to a "hold" rating in a research report on Monday, April 6th. Two analysts have rated the stock with a Hold rating, According to data from MarketBeat, the stock currently has a consensus rating of "Hold".

Matthews International Price Performance

The company has a debt-to-equity ratio of 1.12, a quick ratio of 0.97 and a current ratio of 1.64. The firm has a market capitalization of $854.10 million, a P/E ratio of 88.52 and a beta of 1.12. The company has a 50-day moving average price of $26.21 and a 200-day moving average price of $25.79.

Matthews International (NASDAQ:MATW - Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The company reported $0.37 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.17 by $0.20. Matthews International had a return on equity of 5.88% and a net margin of 0.80%.The business had revenue of $258.62 million for the quarter, compared to analyst estimates of $253.65 million. On average, sell-side analysts predict that Matthews International Corporation will post 0.8 earnings per share for the current year.

Matthews International Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, May 25th. Shareholders of record on Monday, May 11th will be paid a $0.255 dividend. This represents a $1.02 dividend on an annualized basis and a yield of 3.7%. The ex-dividend date of this dividend is Monday, May 11th. Matthews International's payout ratio is presently 329.03%.

Hedge Funds Weigh In On Matthews International

Institutional investors have recently modified their holdings of the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in shares of Matthews International by 4.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 17,686 shares of the company's stock valued at $393,000 after purchasing an additional 780 shares during the period. Jane Street Group LLC bought a new position in Matthews International in the first quarter valued at approximately $1,227,000. Intech Investment Management LLC boosted its holdings in shares of Matthews International by 316.4% in the first quarter. Intech Investment Management LLC now owns 59,502 shares of the company's stock valued at $1,323,000 after buying an additional 45,212 shares during the period. American Century Companies Inc. boosted its holdings in shares of Matthews International by 7.9% in the second quarter. American Century Companies Inc. now owns 64,988 shares of the company's stock valued at $1,554,000 after buying an additional 4,742 shares during the period. Finally, Arrowstreet Capital Limited Partnership bought a new stake in shares of Matthews International during the second quarter worth $1,406,000. Institutional investors own 83.08% of the company's stock.

Matthews International Company Profile

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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