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Materion Sputtering Below 50 DMA Line After Subpar Earnings - Tuesday, May 9, 2023
Materion Corp (MTRN -$0.59 or -0.57% to $103.64) has slumped further with lighter volume. It abruptly retreated for a damaging loss with above average volume on 5/04/23 as it again violated its 50-day moving average (DMA) line ($110.75) raising concerns as its color code was changed to green. Disciplined investors may note that on the prior session (5/03/23) it did not quite produce a gain and a strong close above the pivot point backed by at least +40% above average volume to trigger a proper technical buy signal.
MTRN reported Mar '23 quarterly earnings +13% versus the year-ago period, below the +25% minimum guideline (C criteria) raising fundamental concerns. Volume and volatility often increase near earnings news. It was highlighted in yellow with pivot point cited based on its 3/03/23 high plus 10 cents in the 4/18/23 mid-day report (read here) and shown in greater detail that evening with an annotated graph under the headline, "Encountered Distributional Pressure When Poised for Breakout".
MTRN has a 92 Earnings Per Share Rating, above the 80+ minimum guideline for buy candidates. Only 2 of the past 4 quarterly comparisons were above the +25% minimum earnings guideline (C criteria). A downturn in its FY '20 annual earnings history (A criteria) has been followed by much stronger '21 and '22 results.
The company has a small supply of only 20.6 million shares outstanding (S criteria). That can lead to greater price volatility in the event of institutional buying or selling. The number of top-rated funds owning its shares reportedly fell from 436 in Jun '22 to 401 in Mar '23. Its current Up/Down Volume Ratio of 1.1 is an unbiased indication its shares have been under slight accumulation over the past 50 days, a reassuring sign concerning the I criteria. It has a Timeliness Rating of B and a Sponsorship Rating of A.
Chart courtesy of www.stockcharts.com
Encountered Distributional Pressure When Poised for Breakout - Tuesday, April 18, 2023
Materion Corp (MTRN +$0.45 or +0.39% to $114.80) finished in the lower half of its intra-day raneg after highlighted in yellow with pivot point cited based on its 3/03/23 high plus 10 cents in the earlier mid-day report (read here). It hit a new all-time high with today's early gain. Subsequent gains and a strong close above the pivot point backed by at least +40% above average volume may trigger a proper technical buy signal.
MTRN has a 90 Earnings Per Share Rating, above the 80+ minimum guideline for buy candidates. . Reported earnings +33% on +9% sales revenues for the Dec '22 quarter versus the year-ago period. Three of the past 4 quarterly comparisons were above the +25% minimum earnings guideline (C criteria). A downturn in its FY '20 annual earnings history (A criteria) has been followed by much stronger '21 and '22 results.
The company has a small supply of only 20.5 million shares outstanding (S criteria). That can lead to greater price volatility in the event of institutional buying or selling. The number of top-rated funds owning its shares reportedly fell from 436 in Jun '22 to 403 in Mar '23. However, its current Up/Down Volume Ratio of 1.8 is an unbiased indication its shares have been under accumulation over the past 50 days, a reassuring sign concerning the I criteria. It has a Timeliness Rating of A and a Sponsorship Rating of A.
