Is Methanex Corporation (MEOH) a great play right now?

On Wednesday, shares of Methanex Corporation (NASDAQ:MEOH) marked $14.47 per share versus a previous $11.50 closing price. With having a 25.83% gain, an insight into the fundamental values of Methanex Corporation, investors would also find a great ally in the technical patterns of the stock movements showed in stock charts. MEOH showed a fall of -62.54% within its YTD performance, with highs and lows between $9.00 – $60.17 during the period of 52 weeks, compared to the simple moving average of -59.58% in the period of the last 200 days.

Scotiabank equity researchers changed the status of Methanex Corporation (NASDAQ: MEOH) shares to a “Sector Perform” rating in the report published on March 19th, 2020. Other analysts, including Monness Crespi & Hardt, also published their reports on MEOH shares. Monness Crespi & Hardt repeated the rating from the previous report, marking MEOH under “Neutral” rating, in the report published on March 17th, 2020. Additionally, MEOH shares got another “Market Perform” rating from Cowen, setting a target price of $38 on the company’s shares, according to the report published in December 20th, 2019. On the other hand, Cowen Reiterated the “Market Perform” rating for MEOH shares, as published in the report on October 22nd, 2019. RBC Capital Mkts seems to be going bullish on the price of MEOH shares, based on the price prediction for MEOH, indicating that the shares will jump to $50, giving the shares “Outperform” rating based on their report from October 2nd, 2019. Another “Market Perform” rating came from Cowen, providing a prediction for $50 price target according to the report published in August 6th, 2019.

Methanex Corporation (MEOH) Analysis

The present dividend yield for MEOH owners is set at 0.1, marking the return investors will get regardless of the company’s performance in the upcoming period. However, in order for the company to be able to pay its dividends, just like it is the case with Methanex Corporation, the company needs to provide a healthy cash flow, currently at the value of 2.71. In addition, the growth of sales from quarter to quarter is recording -37.70%, hinting the company’s progress in the upcoming progress.

In order to gain a clear insight on the performance of Methanex Corporation (MEOH) as it may occur in the future, there are more than several well-rounded types of analysis and research techniques, while equity is most certainly one of the more important indicators into the company’s growth and performance. In this case, you want to make sure that the return on the present equity of 25.90% is enough for you to make a profit out of your investment. You may also count in the quick ratio of the company, currently set at 1.30 so you would make sure that the company is able to cover the debts it may have, which can be easily seen in annual reports of the company.

Set to affect the volatility of a given stock, the average volume can also be a valuable indicator, while MEOH is currently recording an average of 601.14K in volumes. The volatility of the stock on monthly basis is set at 15.87%, while the weekly volatility levels are marked at 18.07%with 43.41% of gain in the last seven days. Additionally, long-term investors are predicting the target price of $26.46, indicating growth from the present price of $14.47, which can represent yet another valuable research and analysis points that can help you decide whether to invest in MEOH or pass.

What to Look for When Analyzing Methanex Corporation Shares?

Methanex Corporation (MEOH) is based in the Canada and it represents one of the well-known company operating with Basic Materials sector. If you wish to compare MEOH shares with other companies under Electronic Equipment and Consumer Goods, a factor to note is the P/E value of 13.42 for Methanex Corporation, while the value 8.40 can represent an indicator in the future growth of the company in terms of investor’s expectations. The later value should have a steady growth rate, increasing and growing gradually, which serves the purpose of reliably showcasing the progress of the company. The value 1.08 is supported by the yearly ESP growth of 93.20%.

Besides from looking into the fundamentals, you should also note the number of people inside the company owning the shares, as the values should be in line with the expectations of investors. In that spirit, the present ownership of stocks inside the company is set at 0.50%, which can provide you with an insight of how involved executives are in owning shares of the company. In oppose to the executives’ share, the institutional ownership counts 74.80% of shares, carrying an equal significance as an indicator of value, as the presence of large investors may signal a strong company.

Are Institutional Investors Increasing Stakes in MEOH Shares?

It appears that more than several institutional investors and hedge funds decided to increase stakes in MEOH in the recent period. That is how M&G Investment Management Ltd. now has an increase position in MEOH by 14.09% in the first quarter, owning 14.31 million shares of MEOH stocks, with the value of $412.81 million after the purchase of an additional 1,767,458 shares during the last quarter. In the meanwhile, Wellington Management Co. LLP also increased their stake in MEOH shares changed 2.07% in the first quarter, which means that the company now owns 4.07 million shares of company, all valued at $117.52 million after the acquisition of additional 82,671 shares during the last quarter.

Fidelity acquired a new position in Methanex Corporation during the first quarter, with the value of $92.46 million, and The Vanguard Group, Inc. increased their stake in the company’s shares by 0.31% in the first quarter, now owning 6,573 shares valued at $60.67 million after the acquisition of the additional 2.1 million shares during the last quarter. In the end, Connor, Clark & Lunn Investment M increased their position by 35.87% during the first quarter, now owning 1.89 million MEOH shares, now holding the value of $54.58 million in MEOH with the purchase of the additional 333,347 shares during the period of the last quarter. At the present, 74.80% of MEOH shares are in the ownership of institutional investors.