Matthews International (NASDAQ:MATW) Sees Large Volume Increase - Here's What Happened

Key Points

• Matthews International’s trading volume surged 284% to approximately 1.59 million shares, while the stock closed unchanged at $19.29.
• Analysts remain bearish after the company missed quarterly earnings and revenue estimates; the stock carries a consensus “Sell” rating with a $24 average price target.
• The company maintains a quarterly dividend of $0.255, equivalent to a 5.3% annualized yield, although its negative payout ratio raises questions about dividend sustainability. Insiders have recently purchased shares, acquiring 8,900 shares over the past 90 days.

Matthews International Corporation (NASDAQ:MATW - Get Free Report) saw strong trading volume on Monday. Approximately 1,587,861 shares changed hands during trading, an increase of 284% from the previous session's volume of 413,118 shares. The stock last traded at $19.29 and had previously closed at $19.29.

Wall Street Analyst Weigh In

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

Matthews International Price Performance

The firm has a market capitalization of $598.89 million, a PE ratio of -20.60 and a beta of 1.05. The firm's fifty day moving average price is $22.18 and its 200 day moving average price is $25.05. The company has a current ratio of 1.76, a quick ratio of 1.02 and a debt-to-equity ratio of 1.15.

Matthews International (NASDAQ:MATW - Get Free Report) last posted its 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 negative net margin of 2.65% and a positive return on equity of 4.51%. The business had revenue of $246.02 million for the quarter, compared to analyst estimates of $264.54 million. As a group, equities analysts forecast that Matthews International Corporation will post 0.53 earnings per share for the current year.

Matthews International Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, August 24th. Investors of record on Monday, August 10th were paid a $0.2550 dividend. The ex-dividend date of this dividend was Monday, August 10th. This represents a $1.02 dividend on an annualized basis and a yield of 5.3%. Matthews International's dividend payout ratio (DPR) is currently -109.68%.

Insiders Place Their Bets

In related news, Director Aleta W. Richards purchased 3,000 shares of the firm's stock in a transaction that occurred 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 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 position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director J Nauman acquired 2,000 shares of the business's stock in a transaction on Monday, August 10th. The shares were purchased at an average price of $22.97 per share, with a total value of $45,940.00. Following the completion of the purchase, the director owned 7,081 shares in the company, valued at $162,650.57. This represents a 39.36% increase in their position. The SEC filing for this purchase provides additional information. Insiders have acquired 8,900 shares of company stock valued at $197,914 over the last 90 days. 4.70% of the stock is currently owned by company insiders.

Institutional Trading of Matthews International

Several large investors have recently made changes to their positions in the company. Dimensional Fund Advisors LP boosted its stake in Matthews International by 5.5% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,614,201 shares of the company's stock worth $41,677,000 after purchasing an additional 83,860 shares during the last quarter. Allspring Global Investments Holdings LLC lifted its stake in shares of Matthews International by 2.4% in the first quarter. Allspring Global Investments Holdings LLC now owns 1,100,957 shares of the company's stock worth $27,832,000 after buying an additional 25,478 shares in the last quarter. Barington Companies Management LLC grew its stake in Matthews International by 9.6% during the 4th quarter. Barington Companies Management LLC now owns 1,000,000 shares of the company's stock valued at $26,120,000 after acquiring an additional 87,196 shares in the last quarter. Sei Investments Co. raised its holdings in Matthews International by 12.9% in the 1st quarter. Sei Investments Co. now owns 233,065 shares of the company's stock valued at $6,018,000 after acquiring an additional 26,572 shares during the last quarter. Finally, Principal Financial Group Inc. lifted its stake in Matthews International by 3.1% in the 1st quarter. Principal Financial Group Inc. now owns 151,248 shares of the company's stock worth $3,905,000 after purchasing an additional 4,522 shares in the last quarter. 83.08% of the stock is currently owned by hedge funds and other institutional investors.

About Matthews International

Matthews International Corporation NASDAQ: MATW is a global manufacturer and provider of products, technologies and services for the memorialization, industrial technology and brand experience markets. Founded in 1850 and headquartered in Pittsburgh, Pennsylvania, the company serves customers in North America, Europe, Asia and other international markets.

Through its Memorialization business, Matthews supplies burial and cremation products and services, including caskets, urns, memorials, cemetery products, architectural features and related technologies.

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