Matson (NYSE:MATX) Shares Gap Up on Strong Earnings

Matson, Inc. (NYSE:MATX)’s share price gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $211.44, but opened at $232.49. Matson shares last traded at $223.8070, with a volume of 58,864 shares traded.

The shipping company reported $6.96 EPS for the quarter, topping the consensus estimate of $6.27 by $0.69. The firm had revenue of $1.11 billion during the quarter, compared to the consensus estimate of $1.07 billion. Matson had a return on equity of 16.94% and a net margin of 13.41%. The business’s quarterly revenue was up 26.5% on a year-over-year basis. During the same quarter in the previous year, the firm earned $4.24 earnings per share.

Matson Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 3rd. Stockholders of record on Thursday, November 5th will be paid a $0.38 dividend. The ex-dividend date of this dividend is Thursday, November 5th. This represents a $1.52 annualized dividend and a dividend yield of 0.7%. Matson’s dividend payout ratio is currently 10.16%.

Matson News Summary

Here are the key news stories impacting Matson this week:

• Positive Sentiment: Q3 earnings and revenue beat expectations: Matson earned $6.96 per diluted share, versus analyst consensus of $6.27, while revenue reached $1.11 billion against estimates of $1.07 billion. Net income rose to $209.4 million from $134.7 million a year earlier, and revenue increased 26.5%. Matson Q3 results and outlook
• Positive Sentiment: Stronger outlook: Matson raised its full-year outlook and expects Q4 operating income to be about 50% higher year over year. Management cited elevated China freight rates, which it expects to persist into early 2027. Matson Q4 outlook
• Positive Sentiment: Favorable shipping conditions: Reports point to China service demand, port congestion and e-commerce activity as factors lifting results. Matson also repurchased approximately 0.3 million shares during Q3. Q3 business and demand drivers

Wall Street Analysts Forecast Growth

MATX has been the topic of several analyst reports. Wall Street Zen cut Matson from a “buy” rating to a “hold” rating in a report on Saturday, August 22nd. Weiss Ratings upgraded Matson from a “buy (b-)” rating to a “buy (b)” rating in a report on Thursday, October 8th. Stephens raised their price target on shares of Matson from $270.00 to $300.00 and gave the company an “overweight” rating in a research report on Thursday. Zacks Research downgraded shares of Matson from a “strong-buy” rating to a “hold” rating in a report on Monday, October 5th. Finally, Freedom Broker initiated coverage on Matson in a research note on Wednesday, September 30th. They issued a “buy” rating and a $260.00 price objective for the company. Five research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $259.25.

Insider Transactions at Matson

In other Matson news, SVP Leonard P. Isotoff sold 1,250 shares of the company’s stock in a transaction dated Tuesday, August 11th. The stock was sold at an average price of $208.30, for a total value of $260,375.00. Following the transaction, the senior vice president directly owned 6,527 shares in the company, valued at $1,359,574.10. This represents a 16.07% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Vic S. Angoco, Jr. sold 2,293 shares of the firm’s stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $222.76, for a total transaction of $510,788.68. Following the completion of the sale, the executive vice president directly owned 12,507 shares in the company, valued at $2,786,059.32. This represents a 15.49% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 12,462 shares of company stock valued at $2,695,832. Company insiders own 2.51% of the company’s stock.

Institutional Investors Weigh In On Matson

Several hedge funds have recently added to or reduced their stakes in MATX. Provenance Wealth Advisors LLC bought a new stake in Matson in the 3rd quarter worth approximately $25,000. Allworth Financial LP purchased a new stake in shares of Matson during the second quarter worth about $28,000. Global Retirement Partners LLC bought a new stake in shares of Matson in the 2nd quarter worth approximately $44,000. USA Financial Formulas purchased a new position in Matson during the 3rd quarter valued at $50,000. Finally, Public Employees Retirement System of Ohio purchased a new position in Matson during the 2nd quarter valued at $55,000. Institutional investors own 84.76% of the company’s stock.

Matson Trading Up 6.0%

The company has a market capitalization of $6.70 billion, a P/E ratio of 14.92 and a beta of 1.33. The company has a debt-to-equity ratio of 0.11, a current ratio of 0.89 and a quick ratio of 0.89. The stock’s 50 day moving average is $227.55 and its 200-day moving average is $193.71.

About Matson

Matson, Inc is a transportation and logistics company that provides ocean shipping and supply chain services. Through its Matson Navigation subsidiary, the company transports containerized and bulk cargo, automobiles and other goods between the U.S. mainland and Hawaii, Alaska, Guam, Micronesia and selected South Pacific destinations. Matson also operates services linking the U.S. West Coast with China, Japan and South Korea.

The company serves a broad range of customers, including retailers, manufacturers, wholesalers, government agencies and individual consumers.