Matthews International (NASDAQ:MATW) Reaches New 52-Week Low - Here's What Happened

Key Points

• Matthews International shares hit a new 52-week low of $18.69, well below their 50-day and 200-day moving averages of $23.00 and $25.26, respectively.
• Analyst sentiment has deteriorated, with multiple firms downgrading the stock to “Sell” or “Strong Sell.” Matthews International has a consensus “Sell” rating and a $24.00 price target.
• The company missed quarterly expectations, reporting EPS of $0.06 versus the $0.41 consensus and revenue of $246.02 million versus estimates of $264.54 million. It continues to pay a $0.255 quarterly dividend, representing a 5.3% yield.

Matthews International Corporation (NASDAQ:MATW - Get Free Report) hit a new 52-week low during trading on Monday. The company traded as low as $18.69 and last traded at $18.7320, with a volume of 35222 shares changing hands. The stock had previously closed at $18.95.

Wall Street Analysts Forecast Growth

MATW has been the topic of several recent research reports. Weiss Ratings cut Matthews International from a "sell (d+)" rating to a "sell (d)" rating in a research report on Monday, August 17th. Wall Street Zen cut shares of Matthews International from a "hold" rating to a "sell" rating in a research report on Saturday, August 8th. Zacks Research downgraded shares of Matthews International from a "hold" rating to a "strong sell" rating in a research note on Monday, August 10th. Finally, Truist Financial started coverage on shares of Matthews International in a research report on Friday, August 21st. They set a "hold" rating and a $24.00 price target on the stock. One equities research analyst has rated the stock with a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, Matthews International presently has a consensus rating of "Sell" and a consensus price target of $24.00.

Matthews International Trading Up 1.5%

The company has a debt-to-equity ratio of 1.15, a current ratio of 1.76 and a quick ratio of 1.02. The company has a market capitalization of $600.01 million, a price-to-earnings ratio of -20.54 and a beta of 1.04. The business's 50-day moving average price is $23.00 and its two-hundred day moving average price is $25.26.

Matthews International (NASDAQ:MATW - Get Free Report) last issued its quarterly earnings results on Friday, August 7th. The company reported $0.06 earnings per share (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 company had revenue of $246.02 million for the quarter, compared to analyst estimates of $264.54 million. Research analysts predict that Matthews International Corporation will post 0.53 earnings per share for the current year.

Matthews International Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, August 24th. Stockholders of record on Monday, August 10th were issued a dividend of $0.2550 per share. This represents a $1.02 annualized dividend and a dividend yield of 5.3%. The ex-dividend date of this dividend was Monday, August 10th. Matthews International's dividend payout ratio is -109.68%.

Insiders Place Their Bets

In related news, Director J Nauman purchased 2,000 shares of the firm's stock in a transaction that occurred on Monday, August 10th. The shares were bought at an average price of $22.97 per share, for a total transaction of $45,940.00. Following the completion of the transaction, the director owned 7,081 shares of the company's stock, valued at approximately $162,650.57. This trade represents a 39.36% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available through this link. Also, Director Aleta Richards purchased 3,000 shares of the company's stock in a transaction that occurred on Friday, August 14th. The stock was bought at an average cost of $23.06 per share, with a total value of $69,180.00. Following the purchase, the director owned 12,535 shares of the company's stock, valued at $289,057.10. This represents a 31.46% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders purchased 8,900 shares of company stock worth $197,914 in the last 90 days. 4.70% of the stock is owned by company insiders.

Institutional Trading of Matthews International

Institutional investors and hedge funds have recently made changes to their positions in the company. Tidal Investments LLC acquired a new stake in shares of Matthews International during the 2nd quarter worth approximately $786,000. Squarepoint Ops LLC acquired a new position in Matthews International during the second quarter valued at approximately $616,000. Public Employees Retirement System of Ohio bought a new stake in Matthews International during the second quarter worth $38,000. Amundi bought a new stake in Matthews International during the first quarter worth $287,000. Finally, Quantinno Capital Management LP boosted its holdings in shares of Matthews International by 37.9% in the 1st quarter. Quantinno Capital Management LP now owns 12,612 shares of the company's stock valued at $326,000 after purchasing an additional 3,468 shares in the last quarter. Institutional investors own 83.08% of the company's stock.

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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