Why Methanex Corporation (MEOH) Stock Suddenly Retreated Today

Big changes are happening at Methanex Corporation (NASDAQ:MEOH), which makes the stock worth watching today. The company is among the top losers of the stock market today, sinking -4.7% or (-1.58 points) to $32.01 from its previous close of $33.59. Does this decline mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 232695 contracts so far this session. MEOH shares had a relatively better volume day versus average trading capacity of 440.79 thousand shares, but with a 75.86 million float and a 1.94% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for MEOH stock indicates that the average analyst price target is $47.8 per share. This means the stock has a potential increase of 49.33% from where the MEOH share price has been trading recently which is between $32.33 and $34.39. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $30.

The shorts are running away from Methanex Corporation (MEOH) stock. The latest set of short interest data was released on 31 July 2019, and the numbers show a drop in short interest in MEOH shares. While short interest still represents only 1.76% of MEOH’s float, the number of shares shorted have fallen by -48061. The number of shares shorted fell to 1289076 shares, down from 1337137 shares during the preceding fortnight. With average daily trading volumes at 435819 shares, days to cover decreased to about 3.238671 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Methanex Corporation (TSE:MX): Commentary On Fundamentals” and dated August 12, 2019.

During the recent trading session for Methanex Corporation (NASDAQ:MEOH), the company witnessed their stock drop by $-1.18 over a week and tumble down $-10.25 from the price 20 days ago. When compared to their established 52-week high of $83.23, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 10/04/18. The recent low of $31.91 stood for a -61.54% since 08/14/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 1.73 is also allocated to the stock. Since the beta is greater than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.

Looking at the current readings for Methanex Corporation, the two-week RSI stands at 27.52. This figure suggests that MEOH stock, for now, is overbought, meaning that the shares are not stable in terms of price movement. The stochastic readings, on the other hand, based on the current MEOH readings is similarly very revealing as it has a stochastic reading of 7.29% at this stage. This figure means that MEOH share price today is being overbought.

Technical chart claims that Methanex Corporation (MEOH) would settle between $34.54/share to $35.5/share level. However, if the stock price goes below the $32.48 mark, then the market for Methanex Corporation becomes much weaker. If that happens, the stock price might even plunge as low as $31.38 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.49. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at Cowen lifted target price for shares of MEOH but were stick to Market Perform recommendation for the stock in their opinion released on August 06. The price target has been raised from $49 to $39. Monness Crespi & Hardt analysts again handed out a Buy recommendation to Methanex Corporation (NASDAQ:MEOH) stock but they lifted target price for the shares in a flash note issued to investors on June 27. The target price has been raised from $77 to $69. Analysts at Cowen lowered the stock to a Market Perform call from its previous Outperform recommendation, in a research note that dated back to February 06.

MEOH equity has an average rating of 2.8, with the figure leaning towards a bullish end. 15 analysts who tracked the company were contacted by Reuters. Amongst them, 8 rated the stock as a hold while the remaining 7 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while others rated it as a sell. 5 analysts rated Methanex Corporation (NASDAQ:MEOH) as a buy or a strong buy while 2 advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.

Moving on, MEOH stock price is currently trading at 9.04X forward 12-month Consensus EPS estimates, and its P/S ratio is 0.82 while for the average stock in the same group, the multiple is 2.77. Methanex Corporation current P/E ratio of 7.18 means it is trading at a discount against its industry’s 51.3. In the past 5 years, this ratio for the stock has been fluctuating between 6.85 and 16.63.

Methanex Corporation (MEOH)’s current-quarter revenues are projected to climb by nearly -40.68% to hit $619000, based on current Zacks Consensus Estimate. The firm’s full-year revenues are expected to expand by over -23.13% from $3.93 billion to a noteworthy $3.02 billion. At the other end of the current quarter income statement, Methanex Corporation is expected to see its adjusted earnings surge by roughly -91.67% to hit $0.16 per share. For the fiscal year, MEOH’s earnings are projected to climb by roughly -70.41% to hit $2.03 per share.