Empowered Funds LLC Invests $11.88 Million in Methode Electronics, Inc. $MEI

Key Points

• Empowered Funds LLC acquired 626,350 shares of Methode Electronics, worth approximately $11.88 million, giving it a 1.77% stake. Institutional investors collectively own 95.49% of the company.
• Methode Electronics reported quarterly revenue of $298.1 million, exceeding estimates, but posted an adjusted loss of $0.30 per share versus the expected $0.11 loss. Analysts forecast a full-year loss of $0.95 per share.
• The company maintains a quarterly dividend of $0.05 per share, or $0.20 annually, yielding about 1.1%. Analyst sentiment is mixed, with a consensus “Hold” rating and a $22 price target compared with the stock’s $18.31 opening price.

Empowered Funds LLC purchased a new position in Methode Electronics, Inc. (NYSE:MEI - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor purchased 626,350 shares of the electronics maker's stock, valued at approximately $11,882,000. Empowered Funds LLC owned 1.77% of Methode Electronics as of its most recent SEC filing.

Other institutional investors have also added to or reduced their stakes in the company. Bank of America Corp DE bought a new position in shares of Methode Electronics in the 2nd quarter worth about $1,911,000. Legal & General Group Plc bought a new position in shares of Methode Electronics during the second quarter valued at approximately $65,000. Connor Clark & Lunn Investment Management Ltd. purchased a new position in shares of Methode Electronics during the second quarter valued at approximately $2,468,000. Quantbot Technologies LP bought a new stake in shares of Methode Electronics in the 2nd quarter worth approximately $212,000. Finally, Ieq Capital LLC bought a new stake in shares of Methode Electronics in the 2nd quarter worth approximately $2,330,000. Institutional investors own 95.49% of the company's stock.

Methode Electronics Price Performance

MEI opened at $18.31 on Friday. The company's 50-day simple moving average is $15.93 and its two-hundred day simple moving average is $11.19. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.66 and a current ratio of 2.37. The stock has a market capitalization of $649.46 million, a P/E ratio of -18.13 and a beta of 1.50. Methode Electronics, Inc. has a 52-week low of $4.88 and a 52-week high of $20.38.

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

Methode Electronics Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, July 31st. Stockholders 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 was Friday, July 17th. Methode Electronics's dividend payout ratio (DPR) is -19.80%.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on MEI shares. Craig Hallum assumed coverage on Methode Electronics in a research report on Tuesday, August 25th. They set a "buy" rating and a $30.00 price objective for the company. Weiss Ratings reissued a "sell (d-)" rating on shares of Methode Electronics in a research note on Friday, July 17th. 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 report on Friday, June 26th. Sidoti reiterated a "neutral" rating and issued a $17.00 price target on shares of Methode Electronics in a research note on Friday, June 26th. Finally, Zacks Research upgraded shares of Methode Electronics from a "strong sell" rating to a "hold" rating in a research note on Tuesday, August 4th. Two investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $22.00.

Methode Electronics Company 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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