Methanex (NASDAQ:MEOH) Stock Falls 3% - Should You Sell?

Key Points

• Methanex shares fell 3% to $62.55 in thin trading, with volume down 95% from the average session level.
• Analyst sentiment remains generally positive: the stock has a consensus “Moderate Buy” rating and a $70.56 average price target, despite mixed recent target revisions.
• The company reported quarterly revenue growth of 75% year over year but missed earnings and revenue estimates; institutional investors own 73.49% of Methanex’s shares.

Shares of Methanex Corporation (NASDAQ:MEOH - Get Free Report) TSE: MX fell 3% during mid-day trading on Tuesday. The stock traded as low as $63.27 and last traded at $62.55. Approximately 50,816 shares were traded during mid-day trading, a decline of 95% from the average session volume of 1,005,777 shares. The stock had previously closed at $64.49.

Wall Street Analysts Forecast Growth

MEOH has been the subject of a number of research analyst reports. Zacks Research raised Methanex from a "hold" rating to a "strong-buy" rating in a report on Thursday, October 15th. Weiss Ratings raised Methanex from a "hold (c-)" rating to a "hold (c)" rating in a research note on Monday, October 12th. National Bank Financial boosted their price target on Methanex from $70.00 to $79.00 and gave the stock an "outperform" rating in a research report on Friday. Wall Street Zen raised Methanex from a "buy" rating to a "strong-buy" rating in a research note on Saturday, October 3rd. Finally, Royal Bank Of Canada decreased their price objective on Methanex from $70.00 to $65.00 and set a "sector perform" rating on the stock in a report on Wednesday, July 1st. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $70.56.

Methanex Trading Down 1.9%

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 stock has a market capitalization of $4.89 billion, a P/E ratio of 61.41 and a beta of 0.71. The firm's 50-day simple moving average is $59.79 and its 200 day simple moving average is $57.76.

Methanex (NASDAQ:MEOH - Get Free Report) TSE: MX last posted its quarterly earnings data on Tuesday, July 28th. The specialty chemicals company reported $3.87 earnings per share for the quarter, missing the consensus estimate 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 for the quarter, compared to the consensus estimate of $1.43 billion. During the same quarter last year, the business posted $0.97 EPS. The business's revenue for the quarter was up 75.0% on a year-over-year basis. Equities research analysts anticipate that Methanex Corporation will post 8.73 EPS for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Bank of America Corp DE acquired a new position in shares of Methanex in the second quarter worth about $56,683,000. Connor Clark & Lunn Investment Management Ltd. acquired a new stake in shares of Methanex during the second quarter valued at approximately $53,605,000. Dimensional Fund Advisors LP lifted its position in shares of Methanex by 4.7% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,127,046 shares of the specialty chemicals company's stock valued at $67,116,000 after acquiring an additional 50,681 shares in the last quarter. Man Group plc purchased a new stake in shares of Methanex in the 2nd quarter valued at approximately $35,078,000. Finally, BlackRock Inc. purchased a new stake in shares of Methanex in the 2nd quarter valued at approximately $26,154,000. Institutional investors and hedge funds own 73.49% of the company's stock.

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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