Matson ( (MATX) ) is experiencing volatility. Read on for a possible explanation for the stock’s unusual movement.
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Matson shares came under pressure even after the company reported stronger-than-expected fourth-quarter results, as investors appeared to question how sustainable the recent improvements will be. The company guided consolidated operating income to a solid $135 million–$145 million range, and earnings per share were further boosted by a one-time tax benefit of about $0.77. Management highlighted rising freight rates and higher shipping volumes in its China service, driven by demand for e-commerce and electronic goods, while noting that a U.S.-China trade deal has helped stabilize the key Transpacific route. These operational gains, together with the tax benefit and steady U.S. consumer spending, prompted analysts to revisit their outlooks and adjust their price targets, reflecting reduced geopolitical uncertainty but also the possibility that some of the upside may already be priced in.
More about Matson
YTD Price Performance: 6.77%
Average Trading Volume: 326,346
Technical Sentiment Signal: Strong Buy
Current Market Cap: $4.11B
For further insights into MATX stock on TipRanks’ Stock Analysis page.
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