Methanex (TSE:MX) Stock Passes Below Two Hundred Day Moving Average - Should You Sell?

Key Points

• Methanex Co. shares have fallen below their 200-day moving average of C$50.54, trading as low as C$44.65 recently.
• The company cut its quarterly dividend to $0.185, reflecting an annualized yield of 1.7%, with a payout ratio of 31.43%.
• Wall Street analysts have mixed ratings on Methanex, with an average price target of C$46.50, indicating general optimism despite recent stock performance.

Methanex Co. (TSE:MX - Get Free Report) NASDAQ: MEOH shares crossed below its two hundred day moving average during trading on Monday . The stock has a two hundred day moving average of C$50.54 and traded as low as C$44.65. Methanex shares last traded at C$44.70, with a volume of 172,683 shares traded.

Analysts Set New Price Targets

Several brokerages recently issued reports on MX. Raymond James Financial set a C$40.00 price target on shares of Methanex and gave the stock an "outperform" rating in a research note on Friday, June 13th. Royal Bank Of Canada raised shares of Methanex from a "hold" rating to a "moderate buy" rating in a report on Friday, August 1st. Finally, Scotiabank set a C$53.00 price target on shares of Methanex and gave the company an "outperform" rating in a report on Friday, June 13th. One research analyst has rated the stock with a hold rating, two have issued a buy rating and two have given a strong buy rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Buy" and an average price target of C$46.50.

Methanex Stock Performance

The company has a current ratio of 1.34, a quick ratio of 1.59 and a debt-to-equity ratio of 148.53. The company has a market capitalization of C$2.26 billion, a price-to-earnings ratio of 14.92, a price-to-earnings-growth ratio of 0.44 and a beta of 1.79. The firm has a 50-day simple moving average of C$46.75 and a two-hundred day simple moving average of C$50.14.

Methanex Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 30th. Stockholders of record on Tuesday, September 16th will be paid a $0.185 dividend. This represents a $0.74 annualized dividend and a dividend yield of 1.6%. Methanex's dividend payout ratio (DPR) is currently 31.43%.

Insider Activity

In other Methanex news, Director Rich Sumner bought 1,479 shares of Methanex stock in a transaction on Friday, June 20th. The shares were purchased at an average cost of C$50.65 per share, for a total transaction of C$74,907.36. 0.35% of the stock is owned by corporate insiders.

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.