Methanex (TSE:MX) Shares Down 2.6% - Here's Why

Key Points

• Shares fell 2.6% to C$84.74 on Tuesday with only about 72,000 shares traded (down ~79% versus average volume), after previously closing at C$87.00.
• Several analysts have downgraded the stock (CIBC and Raymond James to "hold"); despite a MarketBeat consensus rating of "Moderate Buy", the consensus target price is only C$50, well below the current share price.
• Methanex reported quarterly EPS of C($0.19) on C$1.28 billion revenue and carries high leverage (debt-to-equity of 143.59) with a slim net margin of 2.19%.

Methanex Co. (TSE:MX - Get Free Report) NASDAQ: MEOH's stock price dropped 2.6% on Tuesday . The company traded as low as C$84.25 and last traded at C$84.74. Approximately 72,000 shares traded hands during mid-day trading, a decline of 79% from the average daily volume of 337,295 shares. The stock had previously closed at C$87.00.

Analysts Set New Price Targets

Several research analysts have recently issued reports on the stock. Canadian Imperial Bank of Commerce cut shares of Methanex from a "strong-buy" rating to a "hold" rating in a report on Friday, February 6th. Raymond James Financial downgraded Methanex from a "moderate buy" rating to a "hold" rating in a research report on Wednesday, January 14th. Finally, Scotiabank lifted their price target on Methanex from C$48.00 to C$60.00 in a research report on Wednesday, January 21st. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of C$50.00.

Methanex Stock Down 3.3%

The company has a debt-to-equity ratio of 143.59, a quick ratio of 1.59 and a current ratio of 2.06. The stock's fifty day simple moving average is C$70.05 and its two-hundred day simple moving average is C$59.44. The company has a market capitalization of C$6.51 billion, a price-to-earnings ratio of 28.24, a P/E/G ratio of 0.44 and a beta of 1.06.

Methanex (TSE:MX - Get Free Report) NASDAQ: MEOH last announced its quarterly earnings data on Thursday, March 5th. The company reported C($0.19) earnings per share (EPS) for the quarter. Methanex had a return on equity of 3.18% and a net margin of 2.19%.The business had revenue of C$1.28 billion during the quarter. On average, sell-side analysts anticipate that Methanex Co. will post 5.9482927 EPS for the current year.

Insider Activity at Methanex

In other news, insider Mark Allard sold 2,000 shares of the firm's stock in a transaction on Friday, March 27th. The stock was sold at an average price of C$86.00, for a total transaction of C$172,000.00. Following the completion of the sale, the insider directly owned 16,604 shares of the company's stock, valued at C$1,427,944. This trade represents a 10.75% decrease in their position. Company insiders own 0.35% of the company's stock.

About Methanex

Methanex Corp manufactures and sells methanol. Methanex's customers use methanol as a feedstock to produce end-products including adhesives, foams, solvents, and windshield washer fluids. The firm also sells its products to the oil refining industry, where the methanol is blended with gasoline to produce a high-octane fuel or blended as a component of biodiesel. Methanex distributes its products through a global supply chain that includes the operation of port terminals, tankers, barges, rail cars, trucks, and pipelines.

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