Methanex (NASDAQ:MEOH) Reaches New 52-Week High After Better-Than-Expected Earnings

Key Points

• Methanex shares reached a new 52-week high, trading near $69 after jumping from a prior close of $62.76, following stronger-than-expected quarterly results.
• The company reported EPS of $3.69 versus the $2.84 consensus and revenue of $1.36 billion versus $1.29 billion expected. Revenue increased 49.7% year over year, while EPS rose sharply from $0.06 in the prior-year quarter.
• Analyst sentiment is broadly positive, with a consensus “Moderate Buy” rating and an average price target of $71.33; institutional investors and hedge funds own 73.49% of the stock.

Shares of Methanex Corporation (NASDAQ:MEOH - Get Free Report) TSE: MX hit a new 52-week high on Friday after the company announced better than expected quarterly earnings. The stock traded as high as $69.03 and last traded at $69.0730, with a volume of 275,011 shares. The stock had previously closed at $62.76.

The specialty chemicals company reported $3.69 EPS for the quarter, topping analysts' consensus estimates of $2.84 by $0.85. Methanex had a return on equity of 11.35% and a net margin of 2.07%. The company had revenue of $1.36 billion for the quarter, compared to the consensus estimate of $1.29 billion. During the same quarter in the previous year, the business earned $0.06 EPS. The company's quarterly revenue was up 49.7% compared to the same quarter last year.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on MEOH shares. Zacks Research upgraded shares of Methanex from a "hold" rating to a "strong-buy" rating in a research report on Thursday, October 15th. Canadian Imperial Bank of Commerce restated an "outperform" rating and set a $77.00 price target on shares of Methanex in a report on Monday, October 19th. UBS Group increased their price objective on Methanex from $71.00 to $74.00 and gave the stock a "buy" rating in a report on Monday, October 5th. Wall Street Zen raised Methanex from a "buy" rating to a "strong-buy" rating in a research report on Saturday, October 3rd. Finally, Weiss Ratings upgraded Methanex from a "hold (c-)" rating to a "hold (c)" rating in a research note on Monday, October 12th. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $71.33.

Hedge Funds Weigh In On Methanex

Large investors have recently bought and sold shares of the stock. Dimensional Fund Advisors LP grew its position in shares of Methanex by 4.7% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,127,046 shares of the specialty chemicals company's stock worth $67,116,000 after buying an additional 50,681 shares during the period. Bank of America Corp DE acquired a new stake in shares of Methanex in the 2nd quarter valued at approximately $56,683,000. Connor Clark & Lunn Investment Management Ltd. acquired a new stake in shares of Methanex in the 2nd quarter valued at approximately $53,605,000. Man Group plc bought a new position in Methanex during the 2nd quarter worth approximately $35,078,000. Finally, BlackRock Inc. bought a new position in Methanex during the 2nd quarter worth approximately $26,154,000. 73.49% of the stock is currently owned by institutional investors and hedge funds.

Methanex Stock Up 9.5%

The firm has a market cap of $5.32 billion, a P/E ratio of 66.72 and a beta of 0.71. The firm's 50 day moving average is $60.91 and its two-hundred day moving average is $56.17. The company has a current ratio of 2.07, a quick ratio of 1.35 and a debt-to-equity ratio of 0.83.

Methanex Company Profile

Methanex Corporation is a global producer and supplier of methanol, a clear, biodegradable liquid chemical used in a wide range of industrial and consumer applications. The company markets methanol to customers worldwide and supports distribution through a global network of production facilities, storage terminals and transportation infrastructure.

Methanol is used to manufacture formaldehyde, acetic acid, solvents, adhesives, plastics and other chemical products. It is also used in fuel applications, including as a blending component, a feedstock for biodiesel and in the production of olefins and other alternative fuels.

Founded in 1992 and headquartered in Vancouver, British Columbia, Methanex operates production facilities and related assets in several regions, including North America, South America and New Zealand.

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