Methode Electronics (NYSE:MEI) Raised to "Hold" at Wall Street Zen

Key Points

• Methode Electronics was upgraded from a "sell" to a "hold" rating by Wall Street Zen, suggesting a more favorable outlook for the stock.
• Robert W. Baird lowered their price target on Methode Electronics from $9.00 to $7.00, indicating a cautious stance despite the upgrade.
• Institutional investors hold 95.49% of Methode Electronics’ stock, with significant increases in ownership from firms like JPMorgan Chase and Barclays PLC during the fourth quarter.

Wall Street Zen upgraded shares of Methode Electronics (NYSE:MEI - Free Report) from a sell rating to a hold rating in a research note issued to investors on Saturday morning.

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

Methode Electronics Stock Down 1.7%

NYSE MEI traded down $0.12 during mid-day trading on Friday, reaching $6.63. 324,162 shares of the company's stock traded hands, compared to its average volume of 569,820. Methode Electronics has a 1-year low of $5.08 and a 1-year high of $17.45. The company has a fifty day simple moving average of $8.25 and a 200-day simple moving average of $8.32. The company has a current ratio of 2.40, a quick ratio of 1.57 and a debt-to-equity ratio of 0.46. The company has a market cap of $233.27 million, a price-to-earnings ratio of -3.72 and a beta of 1.01.

Methode Electronics (NYSE:MEI - Get Free Report) last released its earnings results on Wednesday, July 9th. The electronics maker reported ($0.77) EPS for the quarter, missing analysts' consensus estimates of $0.03 by ($0.80). The firm had revenue of $257,100 billion for the quarter, compared to the consensus estimate of $228.75 million. Methode Electronics had a negative return on equity of 5.60% and a negative net margin of 5.97%. During the same period in the prior year, the business earned ($0.23) EPS. As a group, equities research analysts expect that Methode Electronics will post -0.4 EPS for the current year.

Methode Electronics Cuts Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, August 1st. Shareholders of record on Monday, July 21st will be given a $0.07 dividend. The ex-dividend date is Monday, July 21st. This represents a $0.28 dividend on an annualized basis and a dividend yield of 4.23%. Methode Electronics's dividend payout ratio is currently -15.73%.

Hedge Funds Weigh In On Methode Electronics

Several large investors have recently made changes to their positions in the business. Vanguard Group Inc. increased its stake in Methode Electronics by 3.0% during the first quarter. Vanguard Group Inc. now owns 2,931,118 shares of the electronics maker's stock valued at $18,701,000 after acquiring an additional 85,811 shares during the period. Hotchkis & Wiley Capital Management LLC lifted its holdings in Methode Electronics by 29.1% during 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 buying an additional 349,890 shares in the last quarter. Federated Hermes Inc. lifted its stake 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 valued at $16,666,000 after purchasing an additional 446,398 shares during the period. AQR Capital Management LLC lifted 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 purchasing an additional 451,529 shares during the period. Finally, Ameriprise Financial Inc. lifted its stake in shares of Methode Electronics by 4.6% in the 4th quarter. Ameriprise Financial Inc. now owns 651,283 shares of the electronics maker's stock valued at $7,679,000 after purchasing an additional 28,464 shares during the period. Institutional investors and hedge funds own 95.49% of the company's stock.

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.