SCHEDULE: BlackRock Boosts Stake in Matthews International to 14.2%

BlackRock, Inc. has reported an aggregate beneficial ownership of 14.2% of Matthews International Corp.'s common stock, totaling 4,395,447 shares.

Summary

• BlackRock, Inc. holds an aggregate beneficial ownership of 4,395,447 shares of Matthews International Corp. common stock.
• This represents 14.2% of the total outstanding common stock of Matthews International Corp.
• BlackRock has sole voting power over 4,324,247 shares and sole dispositive power over 4,395,447 shares.
• The shares are held in the ordinary course of business and not for the purpose of changing or influencing control of the issuer.
• iShares Core S&P Small-Cap ETF, a subsidiary of BlackRock, Inc., holds more than 5% of the common stock.
• BlackRock Fund Advisors, another subsidiary, also beneficially owns 5% or greater of the outstanding shares.

Sentiment

Score: 7

Explanation: BlackRock, a major institutional investor, has disclosed a significant 14.2% beneficial ownership in Matthews International Corp., indicating a substantial passive investment. This can be interpreted as a positive signal of confidence in the company from a prominent asset manager.

Positives

• A significant beneficial ownership stake of 14.2% by a major institutional investor like BlackRock, Inc. may signal confidence in Matthews International Corp.
• The shares are held in the ordinary course of business, indicating a passive investment rather than an activist stance.

Risks

• The document certifies that the securities were acquired and are held in the ordinary course of business and not for the purpose of or with the effect of changing or influencing the control of the issuer.

Future Outlook

The document does not provide any forward-looking statements or guidance regarding Matthews International Corp.'s future performance or operations.

Management Comments

• In accordance with SEC Release No. 34-39538 (January 12, 1998), this Schedule 13G reflects the securities beneficially owned, or deemed to be beneficially owned, by certain business units (collectively, the "Reporting Business Units") of BlackRock, Inc. and its subsidiaries and affiliates. It does not include securities, if any, beneficially owned by other business units whose beneficial ownership of securities are disaggregated from that of the Reporting Business Units in accordance with such release.
• By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under 240.14a-11.

Industry Context

This filing indicates a significant passive investment by a leading global asset manager in Matthews International Corp. It reflects BlackRock's portfolio allocation strategy, potentially viewing Matthews International as a valuable holding within its investment mandates, such as small-cap ETFs.

Comparison to Industry Standards

• BlackRock, Inc. is one of the world's largest asset managers, managing trillions in assets. Its significant stake in Matthews International Corp. is consistent with its strategy of holding diversified portfolios, often including substantial positions in publicly traded companies across various market capitalizations.
• The 14.2% stake is a substantial passive investment, typical for large institutional investors like BlackRock who often hold significant percentages of companies, especially those included in their index funds (e.g., iShares Core S&P Small-Cap ETF).
• This level of ownership is common for institutional investors that track indices or manage large diversified funds, contrasting with activist investors who typically acquire large stakes with the explicit intent to influence management or corporate strategy.

Stakeholder Impact

• Shareholders: The disclosure of a significant stake by BlackRock, a major institutional investor, could be viewed positively by existing shareholders, potentially signaling institutional confidence and stability.
• Management: The certification that the shares are held for ordinary course of business and not for control purposes provides clarity to management regarding BlackRock's passive investment intent.

Next Steps

• BlackRock, Inc. will continue to monitor its beneficial ownership in Matthews International Corp.
• Further Schedule 13G amendments will be filed if there are material changes to BlackRock's ownership percentage or intent, or annually as required.

Key Dates

Keywords

BlackRock, Matthews International Corp, Schedule 13G, Beneficial Ownership, Common Stock, Institutional Investor, Equity Stake, Investment Management, Asset Management