Methanex (NASDAQ:MEOH) Shares Gap Up on Strong Earnings

Methanex Co. (NASDAQ:MEOH) (TSE:MX)’s stock price gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $38.97, but opened at $42.50. Methanex shares last traded at $40.64, with a volume of 193,351 shares.

The specialty chemicals company reported $1.21 EPS for the quarter, beating analysts’ consensus estimates of $0.44 by $0.77. Methanex had a net margin of 4.05% and a return on equity of 5.44%. The company had revenue of $935.00 million for the quarter, compared to analysts’ expectations of $920.10 million.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on MEOH shares. Scotiabank boosted their price objective on Methanex from $58.00 to $60.00 and gave the company a “sector outperform” rating in a report on Wednesday, July 10th. UBS Group reduced their price target on shares of Methanex from $58.00 to $54.00 and set a “buy” rating on the stock in a research report on Monday, September 16th. Barclays lowered shares of Methanex from an “overweight” rating to an “equal weight” rating and reduced their target price for the stock from $56.00 to $44.00 in a report on Tuesday, September 10th. Raymond James decreased their price objective on shares of Methanex from $62.00 to $54.00 and set an “outperform” rating for the company in a research report on Wednesday, September 11th. Finally, Royal Bank of Canada reissued a “sector perform” rating and issued a $55.00 target price on shares of Methanex in a report on Tuesday, September 3rd. Three equities research analysts have rated the stock with a hold rating and five have issued a buy rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $55.38.

Hedge Funds Weigh In On Methanex

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Headlands Technologies LLC lifted its stake in shares of Methanex by 346.5% in the 1st quarter. Headlands Technologies LLC now owns 902 shares of the specialty chemicals company’s stock worth $40,000 after acquiring an additional 700 shares during the period. Larson Financial Group LLC acquired a new position in Methanex during the 1st quarter worth approximately $45,000. Blue Trust Inc. lifted its holdings in Methanex by 52,500.0% in the second quarter. Blue Trust Inc. now owns 1,578 shares of the specialty chemicals company’s stock valued at $70,000 after acquiring an additional 1,575 shares during the period. EverSource Wealth Advisors LLC boosted its stake in shares of Methanex by 572.5% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,910 shares of the specialty chemicals company’s stock worth $93,000 after acquiring an additional 1,626 shares in the last quarter. Finally, Squarepoint Ops LLC purchased a new stake in shares of Methanex in the second quarter valued at about $201,000. 73.49% of the stock is currently owned by hedge funds and other institutional investors.

Methanex Stock Performance

The company has a current ratio of 1.25, a quick ratio of 0.87 and a debt-to-equity ratio of 0.80. The firm has a market capitalization of $2.82 billion, a PE ratio of 18.13 and a beta of 1.36. The stock’s 50 day moving average price is $41.16 and its two-hundred day moving average price is $46.06.

About Methanex

Methanex Corporation produces and supplies methanol in China, Europe, the United States, South America, South Korea, Canada, and Asia. The company also purchases methanol produced by others under methanol offtake contracts and on the spot market. In addition, it owns and leases storage and terminal facilities.