Matthews International (NASDAQ:MATW) Sets New 12-Month Low - Here's What Happened

Key Points

• Matthews International shares hit a new 52-week low, falling to $18.49 and trading near $18.55. The stock is below both its 50-day ($21.29) and 200-day ($24.87) moving averages.
• Analysts have a cautious outlook, with a consensus rating of “Reduce” and a $24 price target. The company’s latest quarterly results missed expectations, reporting $0.06 in EPS versus an estimated $0.41 and revenue of $246.02 million versus $264.54 million expected.
• The company maintains a quarterly dividend of $0.255 per share, equivalent to a 5.5% yield, while insiders purchased 8,900 shares worth about $197,914 over the past three months.

Matthews International Corporation (NASDAQ:MATW - Get Free Report) reached a new 52-week low during trading on Monday. The stock traded as low as $18.49 and last traded at $18.5460, with a volume of 26,993 shares traded. The stock had previously closed at $18.61.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on MATW. Weiss Ratings lowered Matthews International from a "sell (d+)" rating to a "sell (d)" rating in a report on Monday, August 17th. Zacks Research upgraded Matthews International from a "strong sell" rating to a "hold" rating in a research report on Tuesday, October 6th. Wall Street Zen downgraded Matthews International from a "hold" rating to a "sell" rating in a research note on Saturday, August 8th. Finally, Truist Financial started coverage on Matthews International in a research report on Friday, August 21st. They set a "hold" rating and a $24.00 price target for the company. Two equities research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Reduce" and a consensus price target of $24.00.

Matthews International Stock Down 0.2%

The company has a quick ratio of 1.02, a current ratio of 1.76 and a debt-to-equity ratio of 1.15. The firm has a market cap of $579.57 million, a price-to-earnings ratio of -19.97 and a beta of 1.05. The stock's 50 day moving average is $21.29 and its 200 day moving average is $24.87.

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

Matthews International Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, August 24th. Stockholders of record on Monday, August 10th were given a dividend of $0.2550 per share. The ex-dividend date was Monday, August 10th. This represents a $1.02 annualized dividend and a dividend yield of 5.5%. Matthews International's dividend payout ratio (DPR) is -109.68%.

Insiders Place Their Bets

In other news, Director J Nauman acquired 1,900 shares of the business's stock in a transaction dated Thursday, August 20th. The stock was acquired at an average price of $21.96 per share, for a total transaction of $41,724.00. Following the completion of the acquisition, the director directly owned 9,081 shares in the company, valued at $199,418.76. This represents a 26.46% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this link. Also, Director Aleta Richards acquired 3,000 shares of the business's stock in a transaction dated Friday, August 14th. The stock was purchased at an average price of $23.06 per share, with a total value of $69,180.00. Following the acquisition, the director owned 12,535 shares of the company's stock, valued at approximately $289,057.10. This trade represents a 31.46% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders bought a total of 8,900 shares of company stock worth $197,914 in the last three months. Company insiders own 4.70% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Versant Capital Management Inc lifted its stake in Matthews International by 232.6% during the third quarter. Versant Capital Management Inc now owns 1,756 shares of the company's stock valued at $34,000 after purchasing an additional 1,228 shares during the last quarter. Tidal Investments LLC acquired a new position in Matthews International in the second quarter worth approximately $786,000. Squarepoint Ops LLC acquired a new position in Matthews International in the second quarter worth approximately $616,000. Public Employees Retirement System of Ohio acquired a new position in Matthews International in the second quarter worth approximately $38,000. Finally, Amundi bought a new position in shares of Matthews International in the first quarter valued at $287,000. 83.08% of the stock is owned by institutional investors and hedge funds.

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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