Matson (NYSE:MATX) Shares Gap Up Following Earnings Beat

Matson, Inc. (NYSE:MATX)’s stock 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.

The shipping company reported $6.96 EPS for the quarter, beating analysts’ consensus estimates 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%. Matson’s revenue for the quarter was up 26.5% on a year-over-year basis. During the same quarter in the prior year, the business posted $4.24 earnings per share.

Matson Announces Dividend

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

Key Matson News

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

Analyst Ratings Changes

A number of analysts have recently weighed in on the company. Zacks Research cut Matson from a “strong-buy” rating to a “hold” rating in a research report on Monday, October 5th. Weiss Ratings upgraded Matson from a “buy (b-)” rating to a “buy (b)” rating in a report on Thursday, October 8th. Freedom Broker initiated coverage on shares of Matson in a report on Wednesday, September 30th. They set a “buy” rating and a $260.00 target price for the company. Stephens boosted their price objective on Matson from $270.00 to $300.00 and gave the stock an “overweight” rating in a report on Thursday. Finally, Wall Street Zen lowered Matson from a “buy” rating to a “hold” rating in a report on Saturday, August 22nd. Five equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $259.25.

Insider Buying and Selling at Matson

In related news, EVP Vic Angoco, Jr. sold 2,293 shares of the firm’s stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $222.76, for a total value of $510,788.68. Following the transaction, the executive vice president directly owned 12,507 shares of the company’s stock, valued at approximately $2,786,059.32. This trade represents a 15.49% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, SVP Ku‘uhaku Park sold 1,000 shares of the business’s stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $208.49, for a total transaction of $208,490.00. Following the completion of the sale, the senior vice president owned 9,984 shares of the company’s stock, valued at $2,081,564.16. The trade was a 9.10% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 12,462 shares of company stock worth $2,695,832 in the last 90 days. Company insiders own 2.51% of the company’s stock.

Institutional Investors Weigh In On Matson

Hedge funds and other institutional investors have recently made changes to their positions in the company. BlackRock Inc. acquired a new stake in Matson in the second quarter worth $952,903,000. Bank of New York Mellon Corp bought a new stake in Matson in the 2nd quarter valued at $50,637,000. Caisse de depot et placement du Quebec acquired a new stake in Matson during the second quarter worth approximately $45,796,000. Retirement Planning Group LLC lifted its holdings in shares of Matson by 12,239.4% during the third quarter. Retirement Planning Group LLC now owns 233,584 shares of the shipping company’s stock worth $51,304,000 after buying an additional 231,691 shares in the last quarter. Finally, Encompass Capital Advisors LLC bought a new stake in shares of Matson in the first quarter valued at approximately $32,761,000. 84.76% of the stock is owned by institutional investors and hedge funds.

Matson Price Performance

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 firm has a market cap of $6.70 billion, a P/E ratio of 14.92 and a beta of 1.33. The company’s 50-day moving average is $227.55 and its two-hundred 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.