Wall Street Zen Downgrades Methode Electronics (NYSE:MEI) to Sell

Key Points

• Methode Electronics has been downgraded from a "hold" rating to a "sell" rating by analysts at Wall Street Zen.
• Robert W. Baird has lowered its target price for the company from $9.00 to $7.00 while maintaining a "neutral" rating.
• Methode Electronics reported a significant earnings miss in its latest quarterly results, posting an EPS of ($0.77) against a consensus estimate of $0.03.

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

Separately, Robert W. Baird decreased their price target on shares of Methode Electronics from $9.00 to $7.00 and set a "neutral" rating on the stock in a report on Tuesday, April 15th.

Methode Electronics Price Performance

Shares of Methode Electronics stock traded down $0.24 during midday trading on Friday, hitting $6.32. 358,431 shares of the company traded hands, compared to its average volume of 611,949. The stock has a market cap of $222.53 million, a price-to-earnings ratio of -3.55 and a beta of 1.04. The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.57 and a current ratio of 2.40. The firm's fifty day moving average price is $8.19 and its 200-day moving average price is $8.18. Methode Electronics has a 12 month low of $5.08 and a 12 month high of $17.45.

Methode Electronics (NYSE:MEI - Get Free Report) last announced its quarterly earnings results on Wednesday, July 9th. The electronics maker reported ($0.77) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.03 by ($0.80). The company had revenue of $257,100 billion for the quarter, compared to the consensus estimate of $228.75 million. Methode Electronics had a negative net margin of 5.97% and a negative return on equity of 5.60%. During the same period last year, the firm posted ($0.23) earnings per share. As a group, sell-side analysts forecast that Methode Electronics will post -0.4 earnings per share for the current year.

Institutional Investors Weigh In On Methode Electronics

A number of institutional investors have recently added to or reduced their stakes in MEI. AQR Capital Management LLC grew its holdings in Methode Electronics by 93.8% during the 1st quarter. AQR Capital Management LLC now owns 932,833 shares of the electronics maker's stock worth $5,951,000 after acquiring an additional 451,529 shares during the last quarter. Federated Hermes Inc. lifted its position in shares of Methode Electronics by 46.2% in the 4th quarter. Federated Hermes Inc. now owns 1,413,611 shares of the electronics maker's stock worth $16,666,000 after purchasing an additional 446,398 shares during the period. Nuveen LLC acquired a new position in shares of Methode Electronics in the 1st quarter worth approximately $2,379,000. Hotchkis & Wiley Capital Management LLC lifted its position 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 worth $9,910,000 after purchasing an additional 349,890 shares during the period. Finally, Arrowstreet Capital Limited Partnership lifted its position in shares of Methode Electronics by 2,396.4% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 287,440 shares of the electronics maker's stock worth $3,389,000 after purchasing an additional 275,926 shares during the period. 95.49% of the stock is 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.