Methode Electronics (NYSE:MEI) Trading Up 8.3% - Time to Buy?

Key Points

• Methode Electronics (NYSE: MEI) shares jumped about 8.3% to $17.13 on Tuesday, after trading as high as $17.14. Volume was slightly below average at 615,800 shares.
• Analyst sentiment remains mixed, but Barrington Research upgraded the stock to outperform with a $25 price target, while other firms issued neutral, hold, or sell calls. MarketBeat shows an average rating of Reduce and an average target of $19.33.
• The company recently missed EPS expectations in its latest quarter, though revenue came in above estimates. Methode also declared a quarterly dividend of $0.05 per share, implying a 1.2% annualized yield.

Methode Electronics, Inc. (NYSE:MEI - Get Free Report)'s stock price shot up 8.3% during trading on Tuesday . The stock traded as high as $17.14 and last traded at $17.1310. 615,800 shares were traded during trading, a decline of 10% from the average session volume of 682,232 shares. The stock had previously closed at $15.82.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on MEI shares. 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. Sidoti reissued a "neutral" rating and issued a $17.00 price objective on shares of Methode Electronics in a research note on Friday, June 26th. Weiss Ratings restated a "sell (d-)" rating on shares of Methode Electronics in a report on Tuesday, April 21st. Wall Street Zen cut Methode Electronics from a "buy" rating to a "hold" rating in a research report on Sunday. Finally, Zacks Research downgraded Methode Electronics from a "hold" rating to a "strong sell" rating in a report on Tuesday, June 30th. One equities research analyst has rated the stock with a Buy rating, two have issued a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat, Methode Electronics currently has an average rating of "Reduce" and an average price target of $19.33.

Methode Electronics Trading Up 8.6%

The company has a market capitalization of $609.37 million, a P/E ratio of -17.02 and a beta of 1.47. The company has a debt-to-equity ratio of 0.48, a current ratio of 2.37 and a quick ratio of 1.66. The firm has a fifty day moving average price of $12.86 and a 200-day moving average price of $9.21.

Methode Electronics (NYSE:MEI - Get Free Report) last issued its quarterly earnings results 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 for 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%. On average, equities research analysts anticipate that Methode Electronics, Inc. will post -0.95 earnings per share for the current year.

Methode Electronics Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, July 31st. Investors of record on Friday, July 17th will be issued a $0.05 dividend. This represents a $0.20 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date of this dividend is Friday, July 17th. Methode Electronics's payout ratio is -19.80%.

Institutional Trading of Methode Electronics

A number of large investors have recently added to or reduced their stakes in the stock. JPMorgan Chase & Co. lifted its stake in Methode Electronics by 51.8% in the third quarter. JPMorgan Chase & Co. now owns 291,065 shares of the electronics maker's stock valued at $2,198,000 after purchasing an additional 99,308 shares during the last quarter. Tudor Investment Corp ET AL increased its position in Methode Electronics by 84.8% in the third quarter. Tudor Investment Corp ET AL now owns 162,766 shares of the electronics maker's stock worth $1,229,000 after buying an additional 74,701 shares during the last quarter. Penn Capital Management Company LLC purchased a new stake in Methode Electronics in the third quarter worth $1,340,000. 4D Advisors LLC bought a new stake in shares of Methode Electronics in the fourth quarter valued at $3,320,000. Finally, Renaissance Technologies LLC raised its stake in shares of Methode Electronics by 203.0% in the fourth quarter. Renaissance Technologies LLC now owns 61,500 shares of the electronics maker's stock valued at $408,000 after buying an additional 41,200 shares during the period. 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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