Methode Electronics (NYSE:MEI) Shares Down 8.2% - Here's What Happened

Key Points

• Methode Electronics shares fell 8.2% in mid-day trading, dropping from a prior close of $17.42 to around $15.99 on lighter-than-normal volume.
• Analysts remain cautious overall, with the stock carrying an average “Reduce” rating and a consensus target price of $19.33 despite mixed recent ratings and target changes.
• Recent earnings were mixed: the company reported a quarterly loss of $0.30 per share, worse than expected, even though revenue of $298.1 million topped estimates.

Methode Electronics, Inc. (NYSE:MEI - Get Free Report)'s share price fell 8.2% during mid-day trading on Wednesday . The stock traded as low as $16.33 and last traded at $15.9950. Approximately 156,498 shares were traded during mid-day trading, a decline of 77% from the average daily volume of 682,294 shares. The stock had previously closed at $17.42.

Analysts Set New Price Targets

A number of equities analysts have recently commented on MEI shares. Sidoti reaffirmed a "neutral" rating and set a $17.00 target price on shares of Methode Electronics in a research report on Friday, June 26th. Wall Street Zen cut Methode Electronics from a "buy" rating to a "hold" rating in a research note on Sunday. Barrington Research upgraded Methode Electronics from a "market perform" rating to an "outperform" rating and set a $25.00 price objective on the stock in a report on Monday, June 29th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Methode Electronics in a research report on Tuesday, April 21st. Finally, Robert W. Baird upped their target price on Methode Electronics from $8.50 to $16.00 and gave the stock a "neutral" rating in a report on Friday, June 26th. One investment analyst has rated the stock with a Buy rating, two have given a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Reduce" and an average target price of $19.33.

Methode Electronics Trading Down 12.2%

The company has a quick ratio of 1.66, a current ratio of 2.37 and a debt-to-equity ratio of 0.48. The stock's 50 day moving average price is $13.03 and its 200-day moving average price is $9.29. The stock has a market capitalization of $542.26 million, a P/E ratio of -15.18 and a beta of 1.47.

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

Methode Electronics Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, July 31st. Investors of record on Friday, July 17th will be paid a dividend of $0.05 per share. This represents a $0.20 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date is Friday, July 17th. Methode Electronics's dividend payout ratio is -19.80%.

Hedge Funds Weigh In On Methode Electronics

Several institutional investors and hedge funds have recently added to or reduced their stakes in MEI. EverSource Wealth Advisors LLC lifted its position in shares of 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 valued at $29,000 after buying an additional 2,815 shares during the last quarter. State of Wyoming purchased a new stake in Methode Electronics during the first quarter valued at approximately $93,000. Mackenzie Financial Corp acquired a new stake in Methode Electronics in the third quarter valued at approximately $103,000. XTX Topco Ltd acquired a new stake in Methode Electronics in the second quarter valued at approximately $107,000. Finally, Inscription Capital LLC purchased a new position in Methode Electronics in the fourth quarter worth $112,000. Hedge funds and other institutional investors own 95.49% of the company's stock.

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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