BlackRock Inc. Takes Position in Methode Electronics, Inc. $MEI

Key Points

• BlackRock acquired 3.46 million shares of Methode Electronics in the second quarter, worth approximately $65.7 million and representing a 9.77% stake. Institutional investors collectively owned 95.49% of the company.
• Methode Electronics reported a quarterly loss of $0.30 per share, missing estimates by $0.19, despite revenue of $298.1 million exceeding consensus expectations. Analysts expect a full-year loss of $0.95 per share.
• Analyst sentiment is mixed, with the stock carrying an average “Hold” rating and a $22 price target; recent targets range from $16 to $30. Shares opened at $18.31, while the company continues paying a $0.05 quarterly dividend.

BlackRock Inc. acquired a new stake in shares of Methode Electronics, Inc. (NYSE:MEI - Free Report) in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund acquired 3,464,774 shares of the electronics maker's stock, valued at approximately $65,727,000. BlackRock Inc. owned about 9.77% of Methode Electronics at the end of the most recent quarter.

Other institutional investors have also recently modified their holdings of the company. Deutsche Bank AG purchased a new stake in Methode Electronics during the 2nd quarter valued at about $4,982,000. AIGH Capital Management LLC purchased a new position in Methode Electronics in the second quarter worth about $31,839,000. Bank of New York Mellon Corp bought a new position in shares of Methode Electronics in the second quarter worth approximately $5,233,000. GSA Capital Partners LLP bought a new position in shares of Methode Electronics in the second quarter worth approximately $226,000. Finally, Marquette Asset Management LLC purchased a new stake in shares of Methode Electronics during the second quarter valued at approximately $370,000. 95.49% of the stock is owned by hedge funds and other institutional investors.

Methode Electronics Price Performance

Shares of Methode Electronics stock opened at $18.31 on Monday. Methode Electronics, Inc. has a one year low of $4.88 and a one year high of $20.38. The stock's fifty day moving average is $15.93 and its 200 day moving average is $11.21. The stock has a market cap of $649.46 million, a P/E ratio of -18.13 and a beta of 1.50. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.66 and a current ratio of 2.37.

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

Methode Electronics Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, July 31st. Shareholders of record on Friday, July 17th were paid a $0.05 dividend. This represents a $0.20 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date of this dividend was Friday, July 17th. Methode Electronics's dividend payout ratio (DPR) is presently -19.80%.

Wall Street Analyst Weigh In

MEI has been the subject of a number of research analyst reports. Wall Street Zen lowered Methode Electronics from a "buy" rating to a "hold" rating in a report on Sunday, August 2nd. Zacks Research raised Methode Electronics from a "strong sell" rating to a "hold" rating in a research report on Tuesday, August 4th. Robert W. Baird lifted their price objective on Methode Electronics from $8.50 to $16.00 and gave the stock a "neutral" rating in a report on Friday, June 26th. Barrington Research raised Methode Electronics from a "market perform" rating to an "outperform" rating and set a $25.00 target price for the company in a research report on Monday, June 29th. Finally, Craig Hallum started coverage on shares of Methode Electronics in a research note on Tuesday, August 25th. They set a "buy" rating and a $30.00 target price on the stock. Two research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $22.00.

About Methode Electronics

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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