Methanex (TSE:MX) Shares Down 8.7% - Time to Sell?

Key Points

• Methanex shares fell 8.7% mid-day to C$73.00 with just 110,547 shares traded (about 68% below average), putting the stock near its 50‑day moving average (C$74.42).
• Several brokerages have recently downgraded the stock to "hold"; despite a consensus rating of Moderate Buy, the consensus price target is C$50.00 — well below the current share price.
• Key fundamentals show a negative quarterly EPS (C($0.19)), low net margin (2.19%), high leverage (debt-to-equity 143.59) and a P/E of 80.38, indicating weak profitability and elevated financial risk.

Methanex Co. (TSE:MX - Get Free Report) NASDAQ: MEOH's stock price was down 8.7% during mid-day trading on Friday . The company traded as low as C$72.53 and last traded at C$73.00. Approximately 110,547 shares traded hands during mid-day trading, a decline of 68% from the average daily volume of 347,274 shares. The stock had previously closed at C$79.94.

Analysts Set New Price Targets

A number of brokerages recently weighed in on MX. Raymond James Financial lowered shares of Methanex from a "moderate buy" rating to a "hold" rating in a research note on Wednesday, January 14th. Royal Bank Of Canada lowered shares of Methanex from a "moderate buy" rating to a "hold" rating in a research note on Wednesday, April 1st. Scotiabank lifted their target price on Methanex from C$48.00 to C$60.00 in a research report on Wednesday, January 21st. Finally, Canadian Imperial Bank of Commerce lowered Methanex from a "strong-buy" rating to a "hold" rating in a research report on Friday, February 6th. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of C$50.00.

Methanex Price Performance

The company has a current ratio of 2.06, a quick ratio of 1.59 and a debt-to-equity ratio of 143.59. The firm has a market cap of C$5.78 billion, a price-to-earnings ratio of 80.38, a price-to-earnings-growth ratio of 0.44 and a beta of 0.46. The company's 50-day moving average is C$74.42 and its 200-day moving average is C$61.92.

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

Insider Buying and Selling at Methanex

In other news, insider Mark Allard sold 2,000 shares of the stock in a transaction on Friday, March 27th. The shares were 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 in the company, valued at C$1,427,944. This represents a 10.75% decrease in their ownership of the stock. 0.35% of the stock is currently owned by company insiders.

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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