Methanex (NASDAQ:MEOH) Shares Break Above 200 Day Moving Average - Here's What Happened

Key Points

• Methanex shares broke above their 200-day moving average, reaching $60.15 before closing at $59.45, compared with a 200-day average of $57.27.
• Analyst sentiment remains favorable, with six Buy ratings and five Holds producing a consensus “Moderate Buy” rating and an average price target of $68.56.
• The company reported quarterly revenue growth of 75% year over year, though earnings of $3.87 per share and revenue of $1.40 billion fell short of analyst estimates. Methanex also declared a quarterly dividend of $0.185, representing a 1.2% annualized yield.

Methanex Corporation (NASDAQ:MEOH - Get Free Report) TSE: MX's stock price passed above its 200-day moving average during trading on Tuesday. The stock has a 200-day moving average of $57.27 and traded as high as $60.15. Methanex shares last traded at $59.45, with a volume of 589,262 shares changing hands.

Wall Street Analysts Forecast Growth

MEOH has been the subject of a number of recent analyst reports. UBS Group increased their target price on shares of Methanex from $70.00 to $71.00 and gave the stock a "buy" rating in a research report on Friday, July 31st. Royal Bank Of Canada reduced their price target on shares of Methanex from $70.00 to $65.00 and set a "sector perform" rating on the stock in a research report on Wednesday, July 1st. National Bank Financial set a $70.00 price objective on shares of Methanex and gave the stock an "outperform" rating in a research note on Monday, July 13th. Zacks Research lowered shares of Methanex from a "strong-buy" rating to a "hold" rating in a report on Monday, June 22nd. Finally, Weiss Ratings raised shares of Methanex from a "sell (d+)" rating to a "hold (c-)" rating in a report on Wednesday, July 29th. Six research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat.com, Methanex presently has a consensus rating of "Moderate Buy" and a consensus target price of $68.56.

Methanex Stock Down 0.6%

The firm has a fifty day moving average price of $57.85 and a 200 day moving average price of $57.27. The company has a quick ratio of 1.35, a current ratio of 2.07 and a debt-to-equity ratio of 0.83. The company has a market cap of $4.60 billion, a P/E ratio of 57.72 and a beta of 0.58.

Methanex (NASDAQ:MEOH - Get Free Report) TSE: MX last announced its earnings results on Tuesday, July 28th. The specialty chemicals company reported $3.87 earnings per share for the quarter, missing analysts' consensus estimates of $4.00 by ($0.13). Methanex had a net margin of 2.07% and a return on equity of 11.35%. The business had revenue of $1.40 billion during the quarter, compared to analyst estimates of $1.43 billion. During the same quarter last year, the business posted $0.97 earnings per share. The business's quarterly revenue was up 75.0% compared to the same quarter last year. Equities research analysts forecast that Methanex Corporation will post 8.6 earnings per share for the current year.

Methanex Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Wednesday, September 16th will be given a $0.1850 dividend. This represents a $0.74 annualized dividend and a yield of 1.2%. The ex-dividend date is Wednesday, September 16th. Methanex's dividend payout ratio (DPR) is presently 71.84%.

Hedge Funds Weigh In On Methanex

A number of institutional investors have recently modified their holdings of MEOH. Dixon Mitchell Investment Counsel Inc. grew its stake in shares of Methanex by 0.4% during the fourth quarter. Dixon Mitchell Investment Counsel Inc. now owns 2,048,214 shares of the specialty chemicals company's stock valued at $81,363,000 after purchasing an additional 7,707 shares during the last quarter. Bank of America Corp DE bought a new position in Methanex in the 2nd quarter worth approximately $56,683,000. Connor Clark & Lunn Investment Management Ltd. bought a new position in Methanex in the 2nd quarter worth approximately $53,605,000. Dimensional Fund Advisors LP lifted its holdings in 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 in the last quarter. Finally, Alberta Investment Management Corp boosted its position in Methanex by 12.0% in the 4th quarter. Alberta Investment Management Corp now owns 1,111,000 shares of the specialty chemicals company's stock valued at $44,129,000 after buying an additional 119,000 shares during the last quarter. 73.49% of the stock is owned by institutional investors.

About Methanex

Methanex Corporation is a global producer and distributor of methanol, a versatile chemical used in the manufacture of formaldehyde, acetic acid, solvents, plastics, and other industrial products. Methanol is also used in fuel blending, marine fuel applications, wastewater treatment, and the production of emerging low-carbon fuels and chemicals.

Headquartered in Vancouver, Canada, Methanex operates methanol production facilities in regions including North America, South America, New Zealand, Egypt, and Trinidad.

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