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

Key Points

• Matthews International shares hit a new 52-week low of $19.51 and were recently trading near $20.59, below both their 50-day and 200-day moving averages.
• Investor sentiment weakened after the company reported quarterly EPS of $0.06, well below the $0.41 consensus estimate, while revenue also missed expectations. Analysts collectively rate the stock “Sell,” with a $24 consensus price target.
• The company maintains a quarterly dividend of $0.255 per share, representing a 5.1% annualized yield, but its payout ratio is negative due to reported losses. Insiders bought 8,900 shares over the past 90 days, while institutional investors own 83.08% of the stock.

Matthews International Corporation (NASDAQ:MATW - Get Free Report)'s share price reached a new 52-week low during mid-day trading on Monday . The company traded as low as $19.51 and last traded at $20.5880, with a volume of 6350829 shares traded. The stock had previously closed at $20.48.

Wall Street Analyst Weigh In

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

Matthews International Trading Down 1.6%

The firm has a fifty day simple moving average of $23.75 and a 200-day simple moving average of $25.49. The firm has a market cap of $628.73 million, a P/E ratio of -21.73 and a beta of 1.04. The company has a debt-to-equity ratio of 1.15, a current ratio of 1.76 and a quick ratio of 1.02.

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

Matthews International Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, August 24th. Shareholders of record on Monday, August 10th were issued a dividend of $0.255 per share. The ex-dividend date was Monday, August 10th. This represents a $1.02 annualized dividend and a yield of 5.1%. Matthews International's dividend payout ratio is presently -109.68%.

Insiders Place Their Bets

In other Matthews International news, Director Aleta Richards acquired 3,000 shares of the company's stock in a transaction on Friday, August 14th. The shares were purchased at an average cost of $23.06 per share, with a total value of $69,180.00. Following the completion of the purchase, the director owned 12,535 shares of the company's stock, valued at approximately $289,057.10. This represents a 31.46% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director J Nauman acquired 2,000 shares of Matthews International stock in a transaction dated Monday, August 10th. The shares were acquired at an average price of $22.97 per share, with a total value of $45,940.00. Following the completion of the acquisition, the director directly owned 7,081 shares of the company's stock, valued at approximately $162,650.57. The trade was a 39.36% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders acquired 8,900 shares of company stock worth $197,914 over the last ninety days. Insiders own 4.70% of the company's stock.

Institutional Trading of Matthews International

Several institutional investors and hedge funds have recently modified their holdings of MATW. Illinois Municipal Retirement Fund lifted its position in shares of Matthews International by 5.2% during the first quarter. Illinois Municipal Retirement Fund now owns 15,969 shares of the company's stock valued at $412,000 after purchasing an additional 786 shares in the last quarter. Janney Montgomery Scott LLC grew its position in Matthews International by 9.9% in the 1st quarter. Janney Montgomery Scott LLC now owns 10,801 shares of the company's stock worth $279,000 after purchasing an additional 971 shares in the last quarter. Swiss National Bank increased its stake in Matthews International by 2.3% in the 1st quarter. Swiss National Bank now owns 58,396 shares of the company's stock valued at $1,508,000 after buying an additional 1,300 shares during the last quarter. Equitable Trust Co. increased its stake in Matthews International by 4.8% in the 1st quarter. Equitable Trust Co. now owns 30,435 shares of the company's stock valued at $786,000 after buying an additional 1,390 shares during the last quarter. Finally, Public Employees Retirement System of Ohio bought a new position in shares of Matthews International during the 2nd quarter worth approximately $38,000. 83.08% of the stock is owned by hedge funds and other institutional investors.

Matthews International Company Profile

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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