3. Matson, Inc. (NYSE:MATX)
Number of Hedge Fund Holders: 27
One of the best marine shipping stocks to invest in, Matson, Inc. (NYSE:MATX) is a Hawaii-based company that offers its services in the ocean transportation and logistics sector. The company operates through two main segments, Ocean Transportation and Logistics.
In the Ocean Transportation segment, the company specializes in freight services tailored for domestic markets, including Hawaii, Japan, Alaska, and Guam, as well as various island economies in Micronesia. The company transports a wide range of cargo, ranging from dry goods to refrigerated items and beverages, which ensures that essential supplies reach these regions consistently. The diversity in cargo handling not only stabilizes revenue but also improves its reputation for reliability.
Meanwhile, the Logistics segment adds to the company’s offerings as it includes transportation brokerage, less-than-container load consolidation, and freight forwarding. The segment also provides warehousing, distribution, and supply chain management services, which cater to various customer needs.
The company serves a set of clients, including the U.S. military, retailers, freight forwarders, consumer goods companies, and automobile manufacturers. The extensive service portfolio positions it as a versatile provider in a competitive market.
Matson (NYSE:MATX) was part of 27 hedge funds’ portfolios in the second quarter with a total stake value of $230.763 million. Citadel Investment Group is the most prominent shareholder in the company and has a position worth $6.147 million as of Q2.
During the second quarter, the company repurchased approximately 0.6 million shares, which signals confidence in its future prospects. As of June 30, Matson’s (NYSE:MATX) cash and cash equivalents rose by $34.2 million from the end of 2023, totaling $168.2 million. The increase points to a strong liquidity position, which is essential for ongoing operations and potential investments.
Moreover, it has been actively reducing its total debt, which decreased by $19.9 million in the first half of the year, bringing the total down to $420.7 million, with most of it being long-term debt.
Analyst sentiment also supports the positive outlook for the company. On August 2, Jack Atkins raised the price target on the stock from $155.00 to $160.00 and maintained an Overweight rating.
The London Company stated the following regarding Matson, Inc. (NYSE:MATX) in its Q2 2024 investor letter:
“Matson, Inc. (NYSE:MATX) – MATX ocean freight services are benefiting from rising shipping rates and improving market conditions. Global ocean freight pricing has been driven up by the ongoing disruption in the Red Sea, coupled with ramping peak season demand and healthier trade volumes. MATX’s success since the onset of the pandemic has led to permanent volume additions in the China trade lane, a transformed balance sheet. and significant share count reduction. MATX remains strategically positioned as a US Jones Act shipping operator and its expedited freight service continues to offer an attractive value proposition for its customers.”
