Why Is Matthews (MATW) Stock Rocketing Higher Today

What Happened?

Shares of diversified solutions provider Matthews International (NASDAQ:MATW) jumped 8% in the morning session after it agreed to sell its Warehouse Automation business to Duravant LLC for $230 million. 

The total consideration included $223.3 million in cash and the assumption of certain liabilities. Matthews stated that the net proceeds from the sale would be primarily used to reduce outstanding debt, strengthen its balance sheet, and support future company plans. This divestiture was part of an ongoing strategic review by the company. The Warehouse Automation business, part of the Industrial Technologies segment, reported $72 million in sales for fiscal 2025.

Is now the time to buy Matthews? Access our full analysis report here.

What Is The Market Telling Us

Matthews’s shares are somewhat volatile and have had 13 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 10 months ago when the stock gained 14.4% on the news that the company announced the sale of its stake in SGK Brand Solutions (a branding and content business) to a newly formed entity created by affiliates of SGS. The deal is projected to generate up to $350 million for Matthews, improving its cash reserves and equipping the company with more capital to fuel new growth initiatives.

Matthews is down 4.4% since the beginning of the year, and at $25.83 per share, it is trading 18.1% below its 52-week high of $31.54 from November 2024. Investors who bought $1,000 worth of Matthews’s shares 5 years ago would now be looking at an investment worth $1,011.

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