Methanex (NASDAQ:MEOH) Raised to Outperform at Royal Bank Of Canada

Key Points

• Methanex's stock rating has been upgraded from "sector perform" to "outperform" by Royal Bank Of Canada, with a new price target of $50.00, suggesting a potential upside of 49.52% from its current price.
• The company recently reported earnings of $0.97 EPS, significantly above the consensus estimate of $0.42, despite a 13.4% decline in revenue compared to the same quarter last year.
• Institutional investors hold 73.49% of Methanex's stock, reflecting strong confidence, with notable increases in holdings from firms like TD Asset Management and Exencial Wealth Advisors.

Royal Bank Of Canada upgraded shares of Methanex (NASDAQ:MEOH - Free Report) TSE: MX from a sector perform rating to an outperform rating in a research report report published on Friday morning, Marketbeat reports. Royal Bank Of Canada currently has $50.00 price target on the specialty chemicals company's stock.

Other equities research analysts have also recently issued reports about the stock. Wall Street Zen cut shares of Methanex from a "buy" rating to a "hold" rating in a report on Thursday, May 1st. CIBC reduced their price objective on shares of Methanex from $47.00 to $44.00 and set an "outperformer" rating for the company in a report on Monday, May 5th. UBS Group reduced their price objective on shares of Methanex from $51.00 to $48.00 and set a "buy" rating for the company in a report on Thursday, July 31st. JPMorgan Chase & Co. assumed coverage on shares of Methanex in a report on Tuesday, June 10th. They set a "neutral" rating and a $33.00 price objective for the company. Finally, Raymond James Financial set a $45.00 price objective on shares of Methanex and gave the company an "outperform" rating in a report on Tuesday, July 15th. Three analysts have rated the stock with a hold rating, five have assigned a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $44.88.

Methanex Price Performance

Shares of MEOH traded up $0.49 during trading hours on Friday, hitting $33.60. 384,290 shares of the company were exchanged, compared to its average volume of 563,536. The company has a quick ratio of 1.43, a current ratio of 2.13 and a debt-to-equity ratio of 1.00. Methanex has a fifty-two week low of $25.46 and a fifty-two week high of $54.49. The company has a market cap of $2.60 billion, a price-to-earnings ratio of 9.90 and a beta of 0.93. The firm's fifty day moving average is $34.06 and its 200 day moving average is $36.68.

Methanex (NASDAQ:MEOH - Get Free Report) TSE: MX last released its quarterly earnings data on Wednesday, July 30th. The specialty chemicals company reported $0.97 earnings per share for the quarter, beating the consensus estimate of $0.42 by $0.55. The company had revenue of $808.46 million for the quarter, compared to the consensus estimate of $835.04 million. Methanex had a return on equity of 12.61% and a net margin of 7.02%. Methanex's revenue for the quarter was down 13.4% on a year-over-year basis. During the same quarter last year, the business posted $0.62 EPS. On average, equities analysts anticipate that Methanex will post 4.32 earnings per share for the current fiscal year.

Methanex Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 30th. Investors of record on Tuesday, September 16th will be given a $0.185 dividend. This represents a $0.74 dividend on an annualized basis and a yield of 2.2%. The ex-dividend date of this dividend is Tuesday, September 16th. Methanex's dividend payout ratio is 21.83%.

Institutional Trading of Methanex

A number of large investors have recently modified their holdings of MEOH. Alberta Investment Management Corp increased its position in Methanex by 1,499.0% during the 1st quarter. Alberta Investment Management Corp now owns 817,100 shares of the specialty chemicals company's stock valued at $28,671,000 after purchasing an additional 766,000 shares during the period. Norges Bank purchased a new stake in shares of Methanex during the fourth quarter valued at about $34,119,000. Cubist Systematic Strategies LLC lifted its position in shares of Methanex by 2,409.2% during the first quarter. Cubist Systematic Strategies LLC now owns 581,000 shares of the specialty chemicals company's stock valued at $20,388,000 after buying an additional 557,845 shares during the last quarter. Encompass Capital Advisors LLC purchased a new stake in shares of Methanex during the fourth quarter valued at about $26,835,000. Finally, Bank of New York Mellon Corp lifted its position in shares of Methanex by 35.4% during the second quarter. Bank of New York Mellon Corp now owns 1,728,377 shares of the specialty chemicals company's stock valued at $57,209,000 after buying an additional 451,728 shares during the last quarter. Hedge funds and other institutional investors own 73.49% of the company's stock.

About Methanex

Methanex Corporation produces and supplies methanol in China, Europe, the United States, South America, South Korea, Canada, and Asia. The company also purchases methanol produced by others under methanol offtake contracts and on the spot market. In addition, it owns and leases storage and terminal facilities.