Methanex (NASDAQ:MEOH) Shares Gap Up – Here’s Why

Methanex Corporation (NASDAQ:MEOH) (TSE:MX)’s share price gapped up before the market opened on Wednesday . The stock had previously closed at $45.95, but opened at $47.59. Methanex shares last traded at $47.9570, with a volume of 194,833 shares traded.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on MEOH. Wall Street Zen upgraded shares of Methanex from a “hold” rating to a “buy” rating in a report on Saturday, May 2nd. Zacks Research lowered shares of Methanex from a “strong-buy” rating to a “hold” rating in a research report on Monday, June 22nd. Scotiabank upped their price objective on shares of Methanex from $70.00 to $80.00 and gave the company an “outperform” rating in a research note on Tuesday, May 5th. Raymond James Financial lifted their target price on shares of Methanex from $52.00 to $65.00 and gave the stock a “market perform” rating in a research note on Thursday, April 16th. Finally, UBS Group boosted their price target on Methanex from $70.00 to $75.00 and gave the company a “buy” rating in a report on Friday, May 1st. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Hold” and an average target price of $66.22.

Methanex Stock Up 4.6%

The company has a debt-to-equity ratio of 0.98, a current ratio of 1.96 and a quick ratio of 1.26. The firm’s 50-day moving average is $57.18 and its 200 day moving average is $53.00. The stock has a market cap of $3.72 billion, a price-to-earnings ratio of -98.06 and a beta of 0.60.

Methanex (NASDAQ:MEOH) (TSE:MX) last announced its quarterly earnings results on Wednesday, April 29th. The specialty chemicals company reported $0.30 earnings per share for the quarter, missing analysts’ consensus estimates of $0.38 by ($0.08). The company had revenue of $957.42 million during the quarter, compared to analyst estimates of $964.76 million. Methanex had a negative net margin of 1.25% and a positive return on equity of 2.96%. The firm’s revenue for the quarter was up 8.7% compared to the same quarter last year. During the same quarter last year, the business earned $1.30 EPS. Sell-side analysts anticipate that Methanex Corporation will post 8.18 earnings per share for the current fiscal year.

Methanex Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Tuesday, June 16th were given a dividend of $0.185 per share. This represents a $0.74 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date of this dividend was Tuesday, June 16th. Methanex’s payout ratio is -151.02%.

Hedge Funds Weigh In On Methanex

A number of large investors have recently modified their holdings of the company. NewEdge Advisors LLC purchased a new stake in shares of Methanex during the 2nd quarter worth about $50,000. Clearstead Advisors LLC lifted its position in Methanex by 336.2% during the fourth quarter. Clearstead Advisors LLC now owns 1,784 shares of the specialty chemicals company’s stock valued at $71,000 after buying an additional 1,375 shares in the last quarter. Parkside Financial Bank & Trust grew its stake in Methanex by 61.0% during the fourth quarter. Parkside Financial Bank & Trust now owns 2,143 shares of the specialty chemicals company’s stock worth $85,000 after buying an additional 812 shares during the period. AXA S.A. acquired a new stake in shares of Methanex in the second quarter worth $166,000. Finally, Barclays PLC increased its position in shares of Methanex by 115.3% in the fourth quarter. Barclays PLC now owns 4,199 shares of the specialty chemicals company’s stock worth $167,000 after acquiring an additional 2,249 shares in the last quarter. 73.49% of the stock is currently owned by hedge funds and other institutional investors.

About Methanex

Methanex Corporation is a Vancouver, Canada–based company and one of the world’s largest producers and suppliers of methanol. The company manufactures methanol, a key feedstock for a wide range of chemical products and industrial applications. Methanex markets its product to customers in energy, plastics, paints and coatings, and various chemical sectors, positioning the company as a critical link in the global supply chain for basic chemicals.

The company’s core product, methanol, serves as a building block for downstream chemicals such as formaldehyde, acetic acid and methyl tertiary butyl ether (MTBE).