Methode Electronics, Inc. (NYSE:MEI) Short Interest Up 54.8% in March

Key Points

• Short interest up 54.8% — as of March 13 short interest totaled 1,195,282 shares, a 54.8% increase from Feb. 26, representing about 3.4% of shares shorted and a short-interest ratio of 1.6 days.
• Methode reported Q1 EPS of ($0.37), missing the ($0.26) estimate while beating revenue estimates ($233.7M vs. $219.4M); the company has negative net margin and ROE, and analysts expect roughly (‑0.4) EPS for the fiscal year.
• Methode has a market cap near $198.5M with a negative P/E, recently announced a $0.05 quarterly dividend (3.6% yield), and carries a consensus MarketBeat rating of "Reduce" with an average target price of $8.50; institutional investors own about 95.5% of the stock.

Methode Electronics, Inc. (NYSE:MEI - Get Free Report) was the target of a significant increase in short interest in the month of March. As of March 13th, there was short interest totaling 1,195,282 shares, an increase of 54.8% from the February 26th total of 772,035 shares. Based on an average daily trading volume, of 725,669 shares, the short-interest ratio is currently 1.6 days. Approximately 3.4% of the shares of the company are short sold.

Institutional Trading of Methode Electronics

Several institutional investors have recently bought and sold shares of the stock. EverSource Wealth Advisors LLC raised its stake in Methode Electronics by 1,027.4% during the second 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 in the last quarter. Smith Moore & CO. bought a new position in shares of Methode Electronics during the second quarter valued at $95,000. XTX Topco Ltd acquired a new stake in shares of Methode Electronics in the 2nd quarter valued at $107,000. Brighton Jones LLC bought a new stake in shares of Methode Electronics in the 3rd quarter worth about $90,000. Finally, Mackenzie Financial Corp bought a new stake in shares of Methode Electronics in the 3rd quarter worth about $103,000. Institutional investors and hedge funds own 95.49% of the company's stock.

Methode Electronics Price Performance

Shares of Methode Electronics stock opened at $5.60 on Friday. The firm has a market cap of $198.51 million, a P/E ratio of -3.08 and a beta of 1.06. The firm's 50-day simple moving average is $7.49 and its 200-day simple moving average is $7.31. Methode Electronics has a twelve month low of $4.88 and a twelve month high of $10.77. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.55 and a current ratio of 2.41.

Methode Electronics (NYSE:MEI - Get Free Report) last posted its quarterly earnings results on Thursday, March 5th. The electronics maker reported ($0.37) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.26) by ($0.11). The business had revenue of $233.70 million during the quarter, compared to analyst estimates of $219.44 million. Methode Electronics had a negative return on equity of 8.04% and a negative net margin of 6.58%. As a group, research analysts expect that Methode Electronics will post -0.4 EPS for the current fiscal year.

Methode Electronics Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, May 1st. Investors of record on Friday, April 17th will be given a dividend of $0.05 per share. This represents a $0.20 annualized dividend and a dividend yield of 3.6%. The ex-dividend date is Friday, April 17th. Methode Electronics's dividend payout ratio (DPR) is -10.99%.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on MEI. Zacks Research raised Methode Electronics to a "hold" rating in a report on Tuesday, December 9th. Weiss Ratings reissued a "sell (d-)" rating on shares of Methode Electronics in a report on Thursday, January 22nd. Finally, Robert W. Baird set a $8.50 price objective on Methode Electronics in a research report on Wednesday, January 14th. Two research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Reduce" and an average target price of $8.50.

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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