Matthews International (NASDAQ:MATW) Hits New 1-Year Low - Here's Why

Key Points

• Matthews International shares hit a new 52-week low, falling to $19.58 and trading near $19.91. The decline follows weak quarterly results, with EPS of $0.06 versus the $0.41 consensus estimate and revenue of $246.02 million below expectations.
• Analyst sentiment is largely negative: the stock carries an average “Sell” rating, with two firms issuing Sell or Strong Sell downgrades and an average price target of $24.00.
• The company maintains a quarterly dividend of $0.255, or $1.02 annually, representing a 5.1% yield, though its payout ratio is negative at -109.68%. Insiders have recently purchased shares, while institutional investors own 83.08% of the stock.

Matthews International Corporation (NASDAQ:MATW - Get Free Report)'s share price hit a new 52-week low during trading on Tuesday . The company traded as low as $19.58 and last traded at $19.91, with a volume of 724375 shares traded. The stock had previously closed at $20.00.

Analyst Ratings Changes

Several equities analysts have recently commented on the stock. Truist Financial started coverage on shares of Matthews International in a report on Friday, August 21st. They issued a "hold" rating and a $24.00 price objective on the stock. Wall Street Zen cut Matthews International from a "hold" rating to a "sell" rating in a research report on Saturday, August 8th. Weiss Ratings downgraded Matthews International from a "sell (d+)" rating to a "sell (d)" rating in a research note on Monday, August 17th. Finally, Zacks Research cut shares of Matthews International from a "hold" rating to a "strong sell" rating in a research note on Monday, August 10th. One research analyst has rated the stock with a Hold rating and two have given a Sell rating to the company. According to MarketBeat, Matthews International presently has an average rating of "Sell" and an average price target of $24.00.

Matthews International Trading Down 0.4%

The company has a current ratio of 1.76, a quick ratio of 1.02 and a debt-to-equity ratio of 1.15. The stock has a market capitalization of $621.39 million, a PE ratio of -21.41 and a beta of 1.04. The business's 50-day moving average is $24.28 and its two-hundred day moving average is $25.67.

Matthews International (NASDAQ:MATW - Get Free Report) last issued its quarterly earnings data on Friday, August 7th. The company reported $0.06 EPS for the quarter, missing analysts' consensus estimates of $0.41 by ($0.35). Matthews International had a positive return on equity of 4.51% and a negative net margin of 2.65%.The firm had revenue of $246.02 million during the quarter, compared to analyst estimates of $264.54 million. On average, analysts predict that Matthews International Corporation will post 0.53 earnings per share for the current year.

Matthews International Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Monday, August 24th. Stockholders of record on Monday, August 10th were paid a $0.255 dividend. This represents a $1.02 dividend on an annualized basis and a dividend yield of 5.1%. The ex-dividend date of this dividend was Monday, August 10th. Matthews International's dividend payout ratio is currently -109.68%.

Insider Activity at Matthews International

In related news, Director Aleta W. Richards purchased 3,000 shares of the stock in a transaction dated Friday, August 14th. The shares were acquired at an average cost of $23.06 per share, for a total transaction of $69,180.00. Following the acquisition, the director directly owned 12,535 shares in the company, valued at approximately $289,057.10. The trade was a 31.46% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director J Nauman bought 1,900 shares of the stock in a transaction on Thursday, August 20th. The shares were acquired at an average cost of $21.96 per share, for a total transaction of $41,724.00. Following the completion of the transaction, the director directly owned 9,081 shares of the company's stock, valued at approximately $199,418.76. The trade was a 26.46% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last three months, insiders have purchased 7,900 shares of company stock valued at $177,924. Company insiders own 4.70% of the company's stock.

Institutional Trading of Matthews International

Several institutional investors have recently made changes to their positions in the business. Dimensional Fund Advisors LP grew its stake in shares of Matthews International by 5.5% in the first quarter. Dimensional Fund Advisors LP now owns 1,614,201 shares of the company's stock valued at $41,677,000 after buying an additional 83,860 shares in the last quarter. UBS Group AG grew its stake in Matthews International by 45.2% in the 4th quarter. UBS Group AG now owns 151,700 shares of the company's stock valued at $3,962,000 after buying an additional 47,246 shares during the last quarter. Hsbc Holdings PLC bought a new position in shares of Matthews International during the fourth quarter worth approximately $603,000. Forty three Eighteen Advisors LLC bought a new stake in shares of Matthews International in the fourth quarter valued at about $1,583,000. Finally, Peapack Gladstone Financial Corp acquired a new position in shares of Matthews International during the 4th quarter worth approximately $679,000. 83.08% of the stock is currently owned by institutional investors and hedge funds.

About Matthews International

Matthews International Corporation NASDAQ: MATW is a global provider of products and services for memorialization, industrial automation and identification, and brand development. Founded in Pittsburgh in 1850, the company has built a diverse portfolio serving funeral homes, cemeteries, manufacturers, consumer brands, and other commercial customers.

Through its Memorialization businesses, Matthews supplies products and services used in burial and cremation, including mausoleums, cremation systems, caskets, urns, bronze memorials, cemetery products, and related software and operational services.

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