Methode Electronics (NYSE:MEI) Rating Increased to Hold at Wall Street Zen

Key Points

• Methode Electronics (NYSE:MEI) received an upgrade from "sell" to "hold" by Wall Street Zen, indicating a shift in investor sentiment.
• The company reported a significant earnings miss with a quarterly EPS of ($0.77), falling short of the expected $0.03, despite revenues exceeding estimates at $257.10 million.
• Institutional investors hold a majority stake in Methode Electronics, owning approximately 95.49% of the company, with notable increases in shares from Deutsche Bank AG and Price T Rowe Associates.

Methode Electronics (NYSE:MEI - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a research note issued to investors on Saturday.

Methode Electronics Stock Down 8.6%

Shares of NYSE MEI traded down $0.66 during mid-day trading on Friday, reaching $7.00. 682,537 shares of the company traded hands, compared to its average volume of 398,138. The company's fifty day moving average is $7.44 and its two-hundred day moving average is $7.50. The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.57 and a current ratio of 2.40. Methode Electronics has a fifty-two week low of $5.08 and a fifty-two week high of $17.45. The stock has a market cap of $246.29 million, a PE ratio of -3.93 and a beta of 1.07.

Methode Electronics (NYSE:MEI - Get Free Report) last announced its earnings results on Wednesday, July 9th. The electronics maker reported ($0.77) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.03 by ($0.80). Methode Electronics had a negative return on equity of 5.60% and a negative net margin of 5.97%.The company had revenue of $257.10 million for the quarter, compared to the consensus estimate of $228.75 million. During the same period in the previous year, the company earned ($0.23) EPS. Methode Electronics has set its FY 2026 guidance at EPS. On average, analysts expect that Methode Electronics will post -0.4 earnings per share for the current year.

Institutional Investors Weigh In On Methode Electronics

A number of large investors have recently bought and sold shares of MEI. AQR Capital Management LLC increased its stake in shares of Methode Electronics by 93.8% in the 1st quarter. AQR Capital Management LLC now owns 932,833 shares of the electronics maker's stock valued at $5,951,000 after buying an additional 451,529 shares during the period. Nuveen LLC acquired a new position in Methode Electronics during the 1st quarter valued at about $2,379,000. Hotchkis & Wiley Capital Management LLC boosted its stake in shares of Methode Electronics by 29.1% in the 1st quarter. Hotchkis & Wiley Capital Management LLC now owns 1,553,250 shares of the electronics maker's stock valued at $9,910,000 after purchasing an additional 349,890 shares during the last quarter. Acadian Asset Management LLC grew its position in shares of Methode Electronics by 105.1% during the 1st quarter. Acadian Asset Management LLC now owns 345,794 shares of the electronics maker's stock worth $2,205,000 after buying an additional 177,200 shares during the period. Finally, Arrowstreet Capital Limited Partnership raised its stake in shares of Methode Electronics by 44.5% during the second quarter. Arrowstreet Capital Limited Partnership now owns 538,501 shares of the electronics maker's stock worth $5,121,000 after buying an additional 165,809 shares during the last quarter. 95.49% of the stock is currently owned by institutional investors.

About Methode Electronics

Methode Electronics, Inc designs, engineers, and produces mechatronic products worldwide. It operates through four segments: Automotive, Industrial, Interface, and Medical. The Automotive segment supplies electronic and electro-mechanical devices, and related products to automobile original equipment manufacturers directly or through their tiered suppliers.