American Century Increases Stake in Matson to $123.3 Million

American Century Companies Inc. has raised its investment in Matson, Inc. (NYSE: MATX) to a notable $123.3 million, reflecting a 2.9% increase during the third quarter of 2023. According to a recent disclosure to the Securities and Exchange Commission, the firm now holds 1,250,636 shares of the shipping company, having acquired an additional 35,229 shares in the last quarter.

This move aligns with a trend among several hedge funds, which have also adjusted their positions in Matson. For instance, Federated Hermes Inc. significantly boosted its holdings by 124.3%, acquiring a total of 249 shares worth $25,000. Additionally, Headlands Technologies LLC entered the scene with a new stake valued at approximately $28,000, while Hantz Financial Services Inc. increased its position by 67.1% during the same period.

Another notable adjustment came from the State of Wyoming, which expanded its stake by an impressive 482.8%, bringing its total to 542 shares valued at around $53,000. Institutional investors now control approximately 84.76% of Matson’s stock.

Matson’s Stock Performance and Financial Health

On February 24, 2024, Matson’s stock opened at $171.61. The company has experienced a robust performance, with a 52-week range between $86.97 and $177.51. As of the latest reports, Matson has a market capitalization of $5.35 billion, a price-to-earnings ratio of 12.31, and a beta of 1.32. Its financial ratios indicate a debt-to-equity ratio of 0.11, a quick ratio of 0.83, and a current ratio of 0.89.

In terms of earnings, Matson recently reported an earnings per share (EPS) of $4.60 for the last quarter, surpassing analysts’ predictions of $3.69 by $0.91. The company achieved revenues of $851.9 million, slightly exceeding the estimated $847.3 million. Despite the positive results, Matson’s revenue reflected a decrease of 4.3% compared to the same period last year, when it recorded an EPS of $3.80.

Dividend Announcement and Analyst Ratings

Matson has announced a quarterly dividend of $0.36, scheduled for payment on March 5, 2024. Shareholders on record as of February 5 will receive this dividend, which translates to an annualized dividend of $1.44 and a yield of 0.8%. The company’s payout ratio currently stands at 10.33%.

Recent analyst ratings for Matson indicate a cautious optimism regarding its future. Wolfe Research has reaffirmed an “outperform” rating with a price target of $167.00, while Stephens has raised its target from $190.00 to $213.00 with an “overweight” rating. Currently, two analysts classify the stock as a Buy, whereas four have assigned a Hold rating. The consensus rating for Matson remains at Hold, with an average price target of $156.25, according to MarketBeat data.

Matson, Inc. is recognized as a key player in ocean transportation and supply chain logistics, primarily servicing Pacific trade routes. The company operates a fleet of container ships that connect Hawaii, Alaska, Guam, Micronesia, and other Pacific islands with the mainland United States. Beyond its liner services, Matson also facilitates shipping options between Asia and the U.S., catering to a diverse range of industries.