Methode Electronics (NYSE:MEI) Lowered to Hold Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Methode Electronics from “buy” to “hold.” The broader analyst consensus is “Reduce,” with one buy, two hold and two sell ratings and an average price target of $19.33.
• Methode shares opened at $13.94, up 1.7%, while the company reported a quarterly loss of $0.30 per share—$0.19 below estimates—despite revenue of $298.1 million exceeding forecasts.
• Institutional investors hold approximately 95.49% of the stock, with several funds recently increasing their positions, including Empowered Funds, Renaissance Technologies and Sei Investments.

Methode Electronics (NYSE:MEI - Get Free Report) was downgraded by Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Sunday.

A number of other equities research analysts also recently commented on the stock. Barrington Research upgraded shares of Methode Electronics from a "market perform" rating to an "outperform" rating and set a $25.00 price objective for the company in a research report on Monday, June 29th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Methode Electronics in a research report on Friday, July 17th. Sidoti reissued a "neutral" rating and set a $17.00 target price on shares of Methode Electronics in a research note on Friday, June 26th. 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. Finally, Zacks Research downgraded Methode Electronics from a "hold" rating to a "strong sell" rating in a research note on Tuesday, June 30th. One research analyst has rated the stock with a Buy rating, two have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, Methode Electronics presently has an average rating of "Reduce" and a consensus target price of $19.33.

Methode Electronics Stock Up 1.7%

Shares of Methode Electronics stock opened at $13.94 on Friday. The company has a market cap of $494.35 million, a P/E ratio of -13.80 and a beta of 1.47. 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 has a one year low of $4.88 and a one year high of $20.38. The firm has a fifty day moving average of $14.23 and a two-hundred day moving average of $10.02.

Methode Electronics (NYSE:MEI - Get Free Report) last released its earnings results on Wednesday, June 24th. The electronics maker reported ($0.30) EPS for the quarter, missing the consensus estimate 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 firm had revenue of $298.10 million during the quarter, compared to analyst estimates of $238.46 million. On average, analysts forecast that Methode Electronics will post -0.95 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Marquette Asset Management LLC purchased a new position in Methode Electronics in the second quarter valued at about $370,000. Empowered Funds LLC boosted its stake in shares of Methode Electronics by 51.2% during the 1st quarter. Empowered Funds LLC now owns 632,346 shares of the electronics maker's stock worth $3,491,000 after acquiring an additional 214,224 shares in the last quarter. Renaissance Technologies LLC grew its holdings in shares of Methode Electronics by 46.3% in the 1st quarter. Renaissance Technologies LLC now owns 90,000 shares of the electronics maker's stock worth $497,000 after acquiring an additional 28,500 shares during the period. Sei Investments Co. grew its holdings in shares of Methode Electronics by 87.7% in the 1st quarter. Sei Investments Co. now owns 465,973 shares of the electronics maker's stock worth $2,572,000 after acquiring an additional 217,764 shares during the period. Finally, State of Wyoming purchased a new position in Methode Electronics in the 1st quarter valued at approximately $93,000. 95.49% of the stock is owned by hedge funds and other institutional investors.

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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