Methode Electronics (NYSE:MEI) Shares Break Above 200 Day Moving Average - Time to Sell?

Key Points

• Methode Electronics shares broke above their 200-day moving average, reaching $14.55 and last trading near $14.36, compared with the $13.03 average.
• Analyst sentiment remains mixed: two analysts rate the stock Buy, three Hold, and one Sell. The consensus rating is Hold, with an average price target of $22.00.
• The company beat quarterly revenue and EPS expectations, reporting revenue of $265.4 million and a loss of $0.22 per share. Methode also declared a $0.05 quarterly dividend, yielding about 1.4% annually.

Methode Electronics, Inc. (NYSE:MEI - Get Free Report)'s stock price crossed above its two hundred day moving average during trading on Thursday. The stock has a two hundred day moving average of $13.03 and traded as high as $14.55. Methode Electronics shares last traded at $14.3590, with a volume of 759,661 shares traded.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on the company. 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. Robert W. Baird raised their target price on Methode Electronics from $8.50 to $16.00 and gave the stock a "neutral" rating in a research report on Friday, June 26th. Craig Hallum started coverage on Methode Electronics in a research report on Tuesday, August 25th. They issued a "buy" rating and a $30.00 target price for the company. Zacks Research upgraded shares of Methode Electronics from a "strong sell" rating to a "hold" rating in a research note on Tuesday, August 4th. Finally, Wall Street Zen downgraded shares of Methode Electronics from a "buy" rating to a "hold" rating in a research note on Sunday, August 2nd. Two research analysts have 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 MarketBeat, the company has an average rating of "Hold" and a consensus target price of $22.00.

Methode Electronics Price Performance

The stock has a market cap of $511.90 million, a price-to-earnings ratio of -13.81 and a beta of 1.57. The company has a quick ratio of 1.65, a current ratio of 2.41 and a debt-to-equity ratio of 0.47. The company's 50-day moving average is $15.29 and its 200-day moving average is $13.03.

Methode Electronics (NYSE:MEI - Get Free Report) last released its quarterly earnings data on Wednesday, September 2nd. The electronics maker reported ($0.22) earnings per share for the quarter, beating analysts' consensus estimates of ($0.27) by $0.05. Methode Electronics had a negative return on equity of 5.63% and a negative net margin of 3.52%. The company had revenue of $265.40 million for the quarter, compared to the consensus estimate of $238.31 million. Equities research analysts expect that Methode Electronics, Inc. will post -0.81 earnings per share for the current fiscal year.

Methode Electronics Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, October 30th. Investors of record on Friday, October 16th will be given a dividend of $0.05 per share. This represents a $0.20 annualized dividend and a dividend yield of 1.4%. The ex-dividend date is Friday, October 16th. Methode Electronics's dividend payout ratio (DPR) is -19.23%.

Institutional Trading of Methode Electronics

Several institutional investors have recently bought and sold shares of the stock. Allworth Financial LP acquired a new position in Methode Electronics during the second quarter worth $40,000. State of Alaska Department of Revenue bought a new position in shares of Methode Electronics during the third quarter valued at $29,000. Integrated Wealth Concepts LLC bought a new position in shares of Methode Electronics during the second quarter valued at $64,000. Legal & General Group Plc acquired a new stake in shares of Methode Electronics in the 2nd quarter valued at $65,000. Finally, Quantbot Technologies LP acquired a new stake in shares of Methode Electronics in the 2nd quarter valued at $212,000. Institutional investors and hedge funds own 95.49% of the company's stock.

Methode Electronics Company Profile

Methode Electronics, Inc is a global designer and manufacturer of custom-engineered electrical and electronic products. The company develops solutions that connect, control, sense and illuminate systems for original equipment manufacturers and other industrial customers.

Its products include sensors, switches and other user-interface components; LED lighting systems; power distribution and management products; flexible circuits and interconnect technologies; and electronic and electromechanical assemblies.

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