Methode Electronics (NYSE:MEI) Shares Down 9.7% - Here's Why

Key Points

• Methode Electronics shares fell 9.7% to approximately $16.34 in low-volume trading, after closing at $18.08.
• The company’s latest quarterly results were mixed: revenue of $298.1 million exceeded expectations, but adjusted EPS of negative $0.30 missed estimates by $0.19. Analysts expect a full-year loss of approximately $0.95 per share.
• Analyst sentiment remains cautious, with a consensus “Hold” rating and an average price target of $19.33; the company also maintains a quarterly dividend of $0.05 per share, yielding about 1.3%.

Methode Electronics, Inc. (NYSE:MEI - Get Free Report) dropped 9.7% during mid-day trading on Tuesday . The stock traded as low as $16.17 and last traded at $16.3350. Approximately 99,808 shares traded hands during trading, a decline of 85% from the average daily volume of 661,341 shares. The stock had previously closed at $18.08.

Wall Street Analysts Forecast Growth

MEI has been the topic of several recent research reports. Robert W. Baird increased their price target on shares of Methode Electronics from $8.50 to $16.00 and gave the stock a "neutral" rating in a research report on Friday, June 26th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Methode Electronics in a research report on Friday, July 17th. Zacks Research raised shares of Methode Electronics from a "strong sell" rating to a "hold" rating in a report on Tuesday, August 4th. Barrington Research upgraded Methode Electronics from a "market perform" rating to an "outperform" rating and set a $25.00 price target for the company in a research note on Monday, June 29th. Finally, Sidoti restated a "neutral" rating and set a $17.00 price objective on shares of Methode Electronics in a research report on Friday, June 26th. One investment analyst has rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $19.33.

Methode Electronics Stock Performance

The firm has a market capitalization of $561.67 million, a PE ratio of -15.68 and a beta of 1.50. The business has a 50-day simple moving average of $15.25 and a 200-day simple moving average of $10.74. 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 (NYSE:MEI - Get Free Report) last posted its quarterly earnings data on Wednesday, June 24th. The electronics maker reported ($0.30) EPS for the quarter, missing the consensus estimate of ($0.11) by ($0.19). The firm had revenue of $298.10 million for the quarter, compared to analysts' expectations of $238.46 million. Methode Electronics had a negative return on equity of 5.59% and a negative net margin of 3.50%. Equities research analysts expect that Methode Electronics, Inc. will post -0.95 earnings per share for the current fiscal year.

Methode Electronics Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, July 31st. Shareholders of record on Friday, July 17th were issued a dividend of $0.05 per share. This represents a $0.20 annualized dividend and a yield of 1.3%. The ex-dividend date was Friday, July 17th. Methode Electronics's dividend payout ratio is presently -19.80%.

Institutional Investors Weigh In On Methode Electronics

Several large investors have recently modified their holdings of the business. BlackRock Inc. purchased a new position in Methode Electronics during the second quarter valued at approximately $65,727,000. Vanguard Group Inc. lifted its holdings in Methode Electronics by 4.5% during the third quarter. Vanguard Group Inc. now owns 3,169,009 shares of the electronics maker's stock worth $23,926,000 after buying an additional 136,842 shares during the period. AIGH Capital Management LLC bought a new stake in Methode Electronics during the 2nd quarter valued at $31,839,000. Federated Hermes Inc. increased its holdings in shares of Methode Electronics by 9.1% in the 4th quarter. Federated Hermes Inc. now owns 1,441,165 shares of the electronics maker's stock valued at $9,569,000 after acquiring an additional 120,202 shares during the period. Finally, Charles Schwab Investment Management Inc. raised its position in shares of Methode Electronics by 31.6% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 1,380,436 shares of the electronics maker's stock worth $9,166,000 after acquiring an additional 331,618 shares in the last quarter. 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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