Methanex (TSE:MX) Stock Price Down 13.1% - Should You Sell?

Key Points

• Methanex shares plunged 13.1% intraday to C$76.94 (low C$74.26) on Wednesday, with volume just 39,068 shares — down ~89% versus the average session volume.
• Several large brokers (CIBC, RBC, Raymond James) have recently downgraded the stock to Hold, while the MarketBeat consensus rating is "Moderate Buy" with a consensus price target of C$50.00, well below the current share price.
• Fundamentals show pressure: the company reported C($0.19) EPS on C$1.28 billion revenue last quarter, has a high P/E of 84.22 and debt-to-equity of 143.59, and an insider (Mark Allard) recently sold shares.

Methanex Co. (TSE:MX - Get Free Report) NASDAQ: MEOH shares fell 13.1% during trading on Wednesday . The stock traded as low as C$74.26 and last traded at C$76.94. 39,068 shares changed hands during mid-day trading, a decline of 89% from the average session volume of 346,505 shares. The stock had previously closed at C$88.58.

Analyst Ratings Changes

Several brokerages recently commented on MX. Canadian Imperial Bank of Commerce downgraded shares of Methanex from a "strong-buy" rating to a "hold" rating in a report on Friday, February 6th. Scotiabank lifted their target price on shares of Methanex from C$48.00 to C$60.00 in a report on Wednesday, January 21st. Royal Bank Of Canada downgraded shares of Methanex from a "moderate buy" rating to a "hold" rating in a report on Wednesday, April 1st. Finally, Raymond James Financial downgraded shares of Methanex from a "moderate buy" rating to a "hold" rating in a report on Wednesday, January 14th. One equities 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 an average rating of "Moderate Buy" and a consensus price target of C$50.00.

Methanex Stock Performance

The firm's fifty day moving average price is C$72.32 and its 200-day moving average price is C$60.71. 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 company has a market cap of C$6.06 billion, a P/E ratio of 84.22, a P/E/G ratio of 0.44 and a beta of 0.46.

Methanex (TSE:MX - Get Free Report) NASDAQ: MEOH last posted 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 company had revenue of C$1.28 billion for the quarter. As a group, research analysts forecast that Methanex Co. will post 5.9482927 EPS for the current fiscal year.

Insider Activity

In other news, insider Mark Allard sold 2,000 shares of the business's stock in a transaction dated 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 transaction, the insider owned 16,604 shares in the company, valued at approximately C$1,427,944. The trade was a 10.75% decrease in their position. 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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