Franklin Resources Inc., a prominent investment management firm, recently announced that it has reduced its holdings in shares of Methanex Co. (NASDAQ:MEOH) (TSE:MX) by 9.4% during the fourth quarter of the calendar year 2020. This was revealed in the company’s latest Form 13F filing with the Securities & Exchange Commission. The fund had initially owned 72,291 shares of the specialty chemicals company’s stock after selling off 7,467 shares during the reporting period, and is now worth $2,737,000.
Methanex Corp. has been a pioneer in the production and supply of methanol for over five decades now, a fact that very effectively drives up investor interest in its activities both locally and internationally. With presence across continents such as North America, Asia Pacific, Europe and South America, Methanex Co. also operates its own methanol ocean tanker fleet which increases its operational expertise.
Shares of Methanex open at $44.10 on Monday and continue to reflect an impressive performance with a one year high of $54.83 while remaining steady at its one year low of $28.73. Furthermore, it enjoys a market capitalization of $3 billion along with a price-to-earnings ratio of 11.79 and a beta of 1.62 – all indicators that greatly contribute to its position as one smart investment option.
The business boasts other impressive ratios such as having a current ratio of 1.83 and quick ratio of 1.40 , reflecting sound liquidity levels while there is also arguably an optimal debt-to-equity ratio at play here being relatively low at 0.91; factors definitely contributing towards making this enterprise increasingly enticing to investors looking to bet on stocks for near term gains or their longterm portfolio directives.
In conclusion all signs indicate that despite Franklin Resources shedding certain portions its stockholding of Methanex, the firm provably still remains a good investment even with a complex market picture both locally and globally. The company’s sound operating proficiency, and the long history of breaking new ground in chemical manufacturing attest to its unwavering potential for growth while also making it a great stock selection driving up overall returns for portfolios that incorporate Methanex shares.
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Methanex Corp Attracts Institutional Interest and Posts Strong Earnings
Institutional investors and hedge funds have had a busy year making changes to their positions in Methanex Corp (NASDAQ:MEOH) (TSE:MX). According to recent reports, UBS Group AG made the greatest percentage shift during the fourth quarter of 2016 with an increase of 1,107.9%. The Swiss-based bank now owns over 70,734 shares in the Vancouver-based methanol producer. Meanwhile, Oppenheimer & Co., Inc grew its position by almost 780% during Q3 of 2016, while Envestnet Asset Management acquired a new stake in the company worth $318,000 at the end of last year. These moves indicate a renewed interest among institutional investors in Methanex as it capitalizes on international demand for methanol.
Alembic Global Advisors upgraded Methanex from “Neutral” to “Overweight”, upping their target price for the stock from $40 to $60 per share. Barclays recently cut their target price on MEOH from $60 to $56 per share. However, Tudor Pickering Holt & Co upgraded MEOH from “Hold” to “Buy” and set a target price of $60 per share. A consensus rating by Bloomberg.com suggests that MEOH is a “Moderate Buy” stock with an average target price of $53.18. With regards to reported earnings data issued on April 26th this year, Methanex Corp surpassed analysts’ consensus estimates by posting EPS of $1.11 compared to predictions of $0.92 EPS.
With revenue at CAD1.04bn for Q1 and growing interest among institutional investors, Vancouver-based Methanex is well placed for further growth in an ever-expanding marketplace. The company’s intensified global efforts will drive customer acquisitions and reinforce its foothold among existing large customers such as Shell Corporation and BP p.l.c. Methanex’s ability to innovate in a rapidly changing technological landscape and its focus on building long-term business relationships with customers looks set to ensure the company stays ahead of its competitors, while boosting investor optimism.