In this article, we discuss the 5 stocks that Jim Cramer is bearish on in September. If you want to read about some more stocks that Cramer is bearish on, go directly to Jim Cramer Is Bearish on These 10 Stocks in September.
5. Matson, Inc. (NYSE:MATX)
Number of Hedge Fund Holders: 25
Matson, Inc. (NYSE:MATX) provides ocean transportation and logistics services. During the Lightning Round of his show on September 13, Cramer outlined his bearish stance on the company while answering a viewer question, saying that he thought the company was going to come under some “pressure” in the coming months as there was a sense that “these shipping companies make a little too much money”.
On August 16, Wolfe Research analyst Jacob Lacks initiated coverage of Matson, Inc. (NYSE:MATX) stock with an Underperform rating and a price target of $80, noting the firm had been one of the biggest beneficiaries of the increase in ocean rates over the past few years.
Among the hedge funds being tracked by Insider Monkey, New York-based firm Millennium Management is a leading shareholder in Matson, Inc. (NYSE:MATX), with 380,352 shares worth more than $27 million.
In its Q2 2022 investor letter, Meridian Funds, an asset management firm, highlighted a few stocks and Matson, Inc. (NYSE:MATX) was one of them. Here is what the fund said:
“Matson, Inc. (NYSE:MATX) is a US-based ocean and logistics company with a leading position in Pacific shipping that provides a vital lifeline to Hawaii, Alaska, and Guam as well as premium and expedited service from China to the US. Given its unique position and terminal assets, Matson has an unparalleled speed advantage over other ocean transportation companies. This speed advantage has been highly valuable to customers given supply chain disruptions which has helped improve inventory velocity. Although the company recently reported strong quarterly earnings growth, its stock declined on signs of slower shipping demand due to rising inventories within the consumer channel and improving port congestion. Given these dynamics, overall container rates have begun to recede from the robust levels experienced in 2021 but still remain at levels that are nearly 4x that of pre-pandemic levels. Although we expect container rates to continue to normalize, we believe the company’s unique speed advantage and increased service capacity between Asia and the U.S. could help offset some of these headwinds. Matson continues to generate strong free cash flow and has proven to be a strong allocator of capital, including increasing dividend payouts for shareholders and buying back stock. During the period, we trimmed our position in the company.”
