Arrowstreet Capital Limited Partnership Lowers Stock Position in Methode Electronics, Inc. $MEI

Key Points

• Arrowstreet Capital cut its Methode Electronics position by 52.2% in the first quarter, selling 424,086 shares and retaining 388,962 shares valued at approximately $2.15 million. Institutional investors collectively own 95.49% of the company.
• Analyst sentiment remains cautious, with an average “Reduce” rating and a $19.33 price target. Ratings range from Barrington Research’s “outperform” recommendation with a $25 target to multiple “sell” or “strong sell” calls.
• Methode Electronics shares recently traded at $17.26, up 14.3%, despite reporting a quarterly adjusted loss of $0.30 per share that missed estimates. The company also maintains a quarterly dividend of $0.05 per share, representing a 1.2% annualized yield.

Arrowstreet Capital Limited Partnership decreased its holdings in shares of Methode Electronics, Inc. (NYSE:MEI - Free Report) by 52.2% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 388,962 shares of the electronics maker's stock after selling 424,086 shares during the period. Arrowstreet Capital Limited Partnership owned approximately 1.10% of Methode Electronics worth $2,147,000 at the end of the most recent reporting period.

Other large investors have also modified their holdings of the company. Tudor Investment Corp ET AL boosted its holdings in Methode Electronics by 84.8% during the third quarter. Tudor Investment Corp ET AL now owns 162,766 shares of the electronics maker's stock worth $1,229,000 after buying an additional 74,701 shares in the last quarter. Penn Capital Management Company LLC increased its holdings in Methode Electronics by 66.9% in the fourth quarter. Penn Capital Management Company LLC now owns 296,267 shares of the electronics maker's stock valued at $1,967,000 after buying an additional 118,749 shares in the last quarter. 4D Advisors LLC purchased a new position in Methode Electronics in the fourth quarter valued at about $3,320,000. EverSource Wealth Advisors LLC lifted its position in shares of Methode Electronics by 1,027.4% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 3,089 shares of the electronics maker's stock valued at $29,000 after acquiring an additional 2,815 shares during the period. Finally, State of Wyoming acquired a new stake in shares of Methode Electronics during the 1st quarter valued at approximately $93,000. 95.49% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on the company. Weiss Ratings restated a "sell (d-)" rating on shares of Methode Electronics in a report on Friday, July 17th. Barrington Research raised Methode Electronics from a "market perform" rating to an "outperform" rating and set a $25.00 price objective for the company in a report on Monday, June 29th. Wall Street Zen downgraded Methode Electronics from a "buy" rating to a "hold" rating in a research report on Sunday. Zacks Research lowered Methode Electronics from a "hold" rating to a "strong sell" rating in a report on Tuesday, June 30th. Finally, Robert W. Baird raised their price target on Methode Electronics from $8.50 to $16.00 and gave the company a "neutral" rating in a research report on Friday, June 26th. One investment analyst has rated the stock with a Buy rating, two have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, Methode Electronics has an average rating of "Reduce" and an average price target of $19.33.

Methode Electronics Trading Up 14.3%

Shares of Methode Electronics stock opened at $17.26 on Thursday. The company has a debt-to-equity ratio of 0.48, a current ratio of 2.37 and a quick ratio of 1.66. Methode Electronics, Inc. has a 1 year low of $4.88 and a 1 year high of $20.38. The company has a market capitalization of $612.14 million, a P/E ratio of -17.09 and a beta of 1.50. The business has a 50 day moving average price of $14.47 and a 200 day moving average price of $10.22.

Methode Electronics (NYSE:MEI - Get Free Report) last posted its earnings results on Wednesday, June 24th. The electronics maker reported ($0.30) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.11) by ($0.19). The company had revenue of $298.10 million during the quarter, compared to analysts' expectations of $238.46 million. Methode Electronics had a negative net margin of 3.50% and a negative return on equity of 5.59%. Sell-side analysts anticipate that Methode Electronics, Inc. will post -0.95 EPS for the current fiscal year.

Methode Electronics Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, July 31st. Investors of record on Friday, July 17th were paid a dividend of $0.05 per share. The ex-dividend date of this dividend was Friday, July 17th. This represents a $0.20 dividend on an annualized basis and a dividend yield of 1.2%. Methode Electronics's dividend payout ratio (DPR) is presently -19.80%.

Methode Electronics Profile

Methode Electronics, Inc is a Chicago-based global manufacturer of custom-engineered electronic and electromechanical components and assemblies. Founded in 1946, Methode specializes in providing solutions that integrate electrical connectors, sensors, switches, human-machine interface devices and power distribution modules. The company's product portfolio addresses complex application requirements across a broad range of end markets, including automotive, industrial, energy, healthcare and data/telecommunications.

In its automotive segment, Methode develops advanced connector systems, circuit protection devices and thermal management solutions for internal combustion, hybrid and electric vehicles.

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