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

Key Points

• Matthews International shares fell to a new 52-week low of $20.69, below the 50-day and 200-day moving averages of $25.59 and $26.11, respectively.
• Analyst sentiment is bearish: Wall Street Zen, Weiss Ratings and Zacks Research downgraded the stock, resulting in a consensus “Sell” rating and a $24.00 average price target.
• The company missed quarterly expectations, reporting $0.06 EPS versus $0.41 expected and revenue of $246.02 million versus $264.54 million forecast, while maintaining a quarterly dividend of $0.255 per share, yielding about 4.9%.

Matthews International Corporation (NASDAQ:MATW - Get Free Report)'s stock price reached a new 52-week low during mid-day trading on Monday . The stock traded as low as $20.69 and last traded at $20.6910, with a volume of 27264 shares changing hands. The stock had previously closed at $20.93.

Wall Street Analysts Forecast Growth

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

Matthews International Price Performance

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 firm has a market cap of $649.95 million, a P/E ratio of -22.33 and a beta of 1.09. The stock's 50-day simple moving average is $25.59 and its two-hundred day simple moving average is $26.11.

Matthews International (NASDAQ:MATW - Get Free Report) last announced its quarterly earnings data on Friday, August 7th. The company reported $0.06 earnings per share (EPS) for the quarter, missing the consensus estimate 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 the consensus estimate of $264.54 million. Equities research analysts forecast that Matthews International Corporation will post 0.53 earnings per share for the current fiscal 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 $0.255 dividend. This represents a $1.02 annualized dividend and a yield of 4.9%. The ex-dividend date of this dividend was Monday, August 10th. Matthews International's dividend payout ratio (DPR) is currently -109.68%.

Insider Activity at Matthews International

In other news, Director J Michael Nauman bought 1,900 shares of the stock in a transaction on Thursday, August 20th. The stock was acquired at an average cost of $21.96 per share, for a total transaction of $41,724.00. Following the acquisition, the director owned 9,081 shares of the company's stock, valued at $199,418.76. This represents a 26.46% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Aleta W. Richards purchased 3,000 shares of the company's stock in a transaction dated Friday, August 14th. The shares were purchased at an average cost of $23.06 per share, for a total transaction of $69,180.00. Following the transaction, the director directly owned 12,535 shares in the company, valued at approximately $289,057.10. This represents a 31.46% increase in their position. The SEC filing for this purchase provides additional information. Insiders have bought 7,900 shares of company stock valued at $177,924 in the last ninety days. Insiders own 4.70% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Steel Partners Holdings L.P. purchased a new position in Matthews International during the fourth quarter valued at approximately $20,084,000. California State Teachers Retirement System increased its position in Matthews International by 2,813.7% during the 2nd quarter. California State Teachers Retirement System now owns 777,100 shares of the company's stock valued at $20,920,000 after buying an additional 750,429 shares in the last quarter. Private Capital Management LLC increased its holdings in shares of Matthews International by 201.1% during the fourth quarter. Private Capital Management LLC now owns 1,018,587 shares of the company's stock valued at $26,605,000 after acquiring an additional 680,256 shares in the last quarter. Simcoe Capital Management LLC purchased a new position in shares of Matthews International in the fourth quarter worth $8,763,000. Finally, Cannell Capital LLC purchased a new position in Matthews International in the 2nd quarter worth $5,926,000. Hedge funds and other institutional investors own 83.08% of the company's stock.

Matthews International Company Profile

Matthews International Corporation NASDAQ: MATW is a diversified industrial company headquartered in Pittsburgh, Pennsylvania. The company operates through two primary business segments—Brand Solutions and Memorialization—offering a broad range of products and services designed to meet the needs of industrial manufacturers, brand marketers and the funeral industry worldwide.

In its Brand Solutions segment, Matthews International provides engraving and digital printing systems, automated finishing equipment, thermal management products and electronics assembly solutions.

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