Methode Electronics, Inc. (NYSE:MEI) Given Consensus Recommendation of "Reduce" by Brokerages

Key Points

• Methode Electronics has a consensus analyst rating of "Reduce", with two sell ratings, two hold ratings, and one buy rating among five covering firms. The average 12-month price target is $19.33.
• The company recently reported Q earnings that missed expectations, posting earnings of -$0.30 per share versus an expected -$0.11, though revenue of $298.1 million topped estimates. Analysts currently expect a -$0.95 EPS for the full fiscal year.
• MEI shares opened at $16.06 and the stock is down 2.3% in the latest session, while institutional ownership remains high at 95.49%. The company also announced a quarterly dividend of $0.05 per share, equal to a 1.2% annual yield.

Shares of Methode Electronics, Inc. (NYSE:MEI - Get Free Report) have received an average recommendation of "Reduce" from the five ratings firms that are currently covering the stock, Marketbeat reports. Two equities research analysts have rated the stock with a sell recommendation, two have issued a hold recommendation and one has issued a buy recommendation on the company. The average 12 month price target among analysts that have updated their coverage on the stock in the last year is $19.3333.

MEI has been the topic of several research analyst reports. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Methode Electronics in a research note on Friday, July 17th. Wall Street Zen downgraded Methode Electronics from a "buy" rating to a "hold" rating in a research note on Sunday, July 12th. Barrington Research raised shares of Methode Electronics from a "market perform" rating to an "outperform" rating and set a $25.00 target price for the company in a report on Monday, June 29th. Zacks Research downgraded shares of Methode Electronics from a "hold" rating to a "strong sell" rating in a research note on Tuesday, June 30th. Finally, Robert W. Baird lifted their price target on shares of Methode Electronics from $8.50 to $16.00 and gave the company a "neutral" rating in a report on Friday, June 26th.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of MEI. EverSource Wealth Advisors LLC grew its position in 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 worth $29,000 after acquiring an additional 2,815 shares during the last quarter. XTX Topco Ltd bought a new position in Methode Electronics in the second quarter valued at about $107,000. Mackenzie Financial Corp bought a new position in Methode Electronics in the third quarter valued at about $103,000. Inscription Capital LLC acquired a new stake in shares of Methode Electronics during the fourth quarter valued at about $112,000. Finally, State of Wyoming acquired a new stake in shares of Methode Electronics during the first quarter valued at about $93,000. 95.49% of the stock is currently owned by institutional investors and hedge funds.

Methode Electronics Stock Down 2.3%

NYSE MEI opened at $16.06 on Friday. The business has a fifty day moving average price of $13.79 and a two-hundred day moving average price of $9.73. 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 has a fifty-two week low of $4.88 and a fifty-two week high of $20.38. The stock has a market capitalization of $569.61 million, a PE ratio of -15.90 and a beta of 1.47.

Methode Electronics (NYSE:MEI - Get Free Report) last issued its 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). Methode Electronics had a negative net margin of 3.50% and a negative return on equity of 5.59%. The business had revenue of $298.10 million during the quarter, compared to analyst estimates of $238.46 million. Equities analysts expect that Methode Electronics will post -0.95 earnings per share for the current fiscal year.

Methode Electronics Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, July 31st. Shareholders of record on Friday, July 17th will be given a $0.05 dividend. The ex-dividend date is Friday, July 17th. This represents a $0.20 dividend on an annualized basis and a yield of 1.2%. Methode Electronics's dividend payout ratio (DPR) is currently -19.80%.

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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