Methode Electronics, Inc. (NYSE:MEI) Stock Has Average Target Price of $22.00 According to Brokerages

Key Points

• Methode Electronics has a “Moderate Buy” consensus rating from six analysts, with an average 12-month price target of $22.00 versus the stock’s reported price of $14.66.
• The company beat quarterly earnings expectations, reporting a loss of $0.22 per share versus the anticipated $0.27 loss, while revenue reached $265.4 million—above the $238.31 million estimate.
• Methode declared a quarterly dividend of $0.05, equivalent to $0.20 annually and a 1.4% yield; institutional investors own approximately 95.49% of the outstanding shares.

Shares of Methode Electronics, Inc. (NYSE:MEI - Get Free Report) have been assigned a consensus rating of "Moderate Buy" from the six ratings firms that are covering the company, MarketBeat.com reports. One research analyst has rated the stock with a sell rating, two have assigned a hold rating, two have assigned a buy rating and one has given a strong buy rating to the company. The average 1-year price target among brokers that have issued ratings on the stock in the last year is $22.00.

Several research analysts recently weighed in on MEI shares. Zacks Research raised shares of Methode Electronics from a "hold" rating to a "strong-buy" rating in a report on Monday, October 26th. Weiss Ratings reissued a "sell (d-)" rating on shares of Methode Electronics in a report on Thursday, October 15th. Wall Street Zen cut Methode Electronics from a "buy" rating to a "hold" rating in a report on Sunday, August 2nd. Finally, Craig Hallum started coverage on Methode Electronics in a research note on Tuesday, August 25th. They issued a "buy" rating and a $30.00 price objective for the company.

Methode Electronics Price Performance

NYSE MEI opened at $14.66 on Friday. Methode Electronics has a 12 month low of $4.88 and a 12 month high of $20.38. The stock has a market cap of $522.63 million, a price-to-earnings ratio of -14.10 and a beta of 1.57. The company's 50 day moving average is $14.74 and its two-hundred day moving average is $11.63. The company has a current ratio of 2.41, a quick ratio of 1.65 and a debt-to-equity ratio of 0.47.

Methode Electronics (NYSE:MEI - Get Free Report) last posted its quarterly earnings results on Wednesday, September 2nd. The electronics maker reported ($0.22) earnings per share for the quarter, topping analysts' consensus estimates of ($0.27) by $0.05. The business had revenue of $265.40 million during the quarter, compared to analyst estimates of $238.31 million. Methode Electronics had a negative net margin of 3.52% and a negative return on equity of 5.63%. As a group, research analysts anticipate that Methode Electronics will post -0.81 earnings per share for the current year.

Methode Electronics Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, October 30th. Investors of record on Friday, October 16th were issued a $0.05 dividend. The ex-dividend date of this dividend was Friday, October 16th. This represents a $0.20 dividend on an annualized basis and a yield of 1.4%. Methode Electronics's payout ratio is currently -19.23%.

Institutional Investors Weigh In On Methode Electronics

A number of institutional investors have recently added to or reduced their stakes in the stock. Bank of America Corp DE bought a new position in shares of Methode Electronics during the 2nd quarter valued at about $1,911,000. Sei Investments Co. grew its position in shares of Methode Electronics by 87.7% during the first quarter. Sei Investments Co. now owns 465,973 shares of the electronics maker's stock valued at $2,572,000 after purchasing an additional 217,764 shares in the last quarter. Bank of New York Mellon Corp bought a new stake in shares of Methode Electronics in the second quarter worth about $5,233,000. Wellington Management Group LLP bought a new stake in shares of Methode Electronics in the second quarter worth about $1,658,000. Finally, Ieq Capital LLC bought a new stake in shares of Methode Electronics in the second quarter worth about $2,330,000. 95.49% of the stock is owned by hedge funds and other institutional investors.

About Methode Electronics

Methode Electronics, Inc NYSE: MEI is a global designer and manufacturer of engineered electrical and electronic products. The company develops solutions that enable sensing, control, illumination, power distribution, and human-machine interaction across a range of markets.

Its products include sensors and switches, user-interface controls, LED lighting systems, power-distribution and interconnect products, and other customized electronic and electromechanical components. Methode serves customers in the automotive, industrial, aerospace, medical, construction equipment, data communications, and consumer markets.

Founded in 1946 and headquartered in Chicago, Illinois, Methode Electronics serves customers internationally through operations and facilities in North America, Europe, and Asia.

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