Methanex (NASDAQ:MEOH) Shares Gap Up - Here's What Happened

Key Points

• Methanex shares gapped up Friday, opening at $61.91 vs. the prior close of $59.46 and last trading at $63.19 (about a 7.9% intraday gain) on volume of 704,121 shares.
• Several brokerages have raised price targets and issued buy/outperform ratings (RBC, BMO, Jefferies, UBS), giving Methanex an average MarketBeat rating of “Moderate Buy” with an average price target of $52.36.
• Methanex recently missed quarterly estimates (EPS -$0.14 vs. $0.81 expected; revenue $968.8M vs. $1.03B expected) but declared a quarterly dividend of $0.185 per share (1.2% yield, ex-dividend March 17).

Methanex Corporation (NASDAQ:MEOH - Get Free Report) TSE: MX shares gapped up before the market opened on Friday . The stock had previously closed at $59.46, but opened at $61.91. Methanex shares last traded at $63.19, with a volume of 704,121 shares changing hands.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on MEOH. Royal Bank Of Canada increased their price objective on shares of Methanex from $50.00 to $55.00 and gave the company an "outperform" rating in a research report on Monday, February 2nd. BMO Capital Markets boosted their target price on shares of Methanex from $65.00 to $70.00 and gave the company an "outperform" rating in a research note on Wednesday, March 18th. Jefferies Financial Group raised their price target on Methanex from $50.00 to $60.00 and gave the stock a "buy" rating in a research note on Wednesday, March 11th. UBS Group lifted their price objective on Methanex from $53.00 to $60.00 and gave the stock a "buy" rating in a report on Wednesday, March 4th. Finally, Scotiabank reiterated an "outperform" rating on shares of Methanex in a research report on Wednesday, January 21st. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, Methanex has an average rating of "Moderate Buy" and an average price target of $52.36.

Methanex Trading Up 7.9%

The company has a quick ratio of 1.37, a current ratio of 2.06 and a debt-to-equity ratio of 0.99. The firm has a market capitalization of $4.96 billion, a PE ratio of 56.61 and a beta of 0.65. The stock's fifty day simple moving average is $50.50 and its 200 day simple moving average is $42.64.

Methanex (NASDAQ:MEOH - Get Free Report) TSE: MX last issued its quarterly earnings results on Thursday, March 5th. The specialty chemicals company reported ($0.14) earnings per share for the quarter, missing the consensus estimate of $0.81 by ($0.95). Methanex had a return on equity of 5.35% and a net margin of 2.21%.The business had revenue of $968.81 million for the quarter, compared to analysts' expectations of $1.03 billion. During the same quarter in the prior year, the business earned $1.24 EPS. The company's revenue was up 2.1% compared to the same quarter last year. On average, sell-side analysts predict that Methanex Corporation will post 4.32 earnings per share for the current year.

Methanex Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Tuesday, March 17th will be issued a dividend of $0.185 per share. This represents a $0.74 annualized dividend and a yield of 1.2%. The ex-dividend date of this dividend is Tuesday, March 17th. Methanex's payout ratio is currently 65.49%.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in MEOH. Amundi lifted its position in shares of Methanex by 3.9% during the 1st quarter. Amundi now owns 22,791 shares of the specialty chemicals company's stock valued at $800,000 after buying an additional 848 shares in the last quarter. Legal & General Group Plc increased its holdings in Methanex by 3.2% in the 2nd quarter. Legal & General Group Plc now owns 72,408 shares of the specialty chemicals company's stock worth $2,393,000 after acquiring an additional 2,248 shares in the last quarter. Franklin Resources Inc. increased its holdings in Methanex by 70.9% in the 2nd quarter. Franklin Resources Inc. now owns 11,543 shares of the specialty chemicals company's stock worth $382,000 after acquiring an additional 4,788 shares in the last quarter. XTX Topco Ltd bought a new stake in Methanex during the 2nd quarter worth approximately $580,000. Finally, Hsbc Holdings PLC bought a new stake in Methanex during the 2nd quarter worth approximately $419,000. Institutional investors own 73.49% of the company's stock.

About Methanex

Methanex Corporation is a Vancouver, Canada–based company and one of the world's largest producers and suppliers of methanol. The company manufactures methanol, a key feedstock for a wide range of chemical products and industrial applications. Methanex markets its product to customers in energy, plastics, paints and coatings, and various chemical sectors, positioning the company as a critical link in the global supply chain for basic chemicals.

The company's core product, methanol, serves as a building block for downstream chemicals such as formaldehyde, acetic acid and methyl tertiary butyl ether (MTBE).

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