Methode Electronics (NYSE:MEI) Shares Gap Up - Here's What Happened

Key Points

• Methode Electronics shares surged 15.3%, opening at $15.73 versus a prior close of $14.03 and later trading around $16.01.
• Analyst sentiment remains mixed: the stock has a consensus “Hold” rating and a $22.00 target price, though recent targets range from $16.00 to $30.00.
• The company missed quarterly EPS expectations, reporting a loss of $0.30 per share versus an expected loss of $0.11, despite revenue of $298.1 million exceeding estimates. Methode also maintains a $0.05 quarterly dividend, yielding about 1.2%.

Shares of Methode Electronics, Inc. (NYSE:MEI - Get Free Report) gapped up before the market opened on Tuesday . The stock had previously closed at $14.03, but opened at $15.73. Methode Electronics shares last traded at $16.0060, with a volume of 44,096 shares traded.

Analyst Ratings Changes

Several brokerages recently commented on MEI. Robert W. Baird boosted their price target on shares of Methode Electronics from $8.50 to $16.00 and gave the stock a "neutral" rating in a report on Friday, June 26th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Methode Electronics in a research report on Friday, July 17th. Barrington Research raised shares of Methode Electronics from a "market perform" rating to an "outperform" rating and set a $25.00 target price for the company in a research note on Monday, June 29th. Craig Hallum initiated coverage on shares of Methode Electronics in a research report on Tuesday. They set a "buy" rating and a $30.00 price target for the company. Finally, Zacks Research raised shares of Methode Electronics from a "strong sell" rating to a "hold" rating in a research note on Tuesday, August 4th. Two analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $22.00.

Methode Electronics Trading Up 15.3%

The firm has a market capitalization of $573.55 million, a price-to-earnings ratio of -15.99 and a beta of 1.50. The company has a fifty day moving average price of $15.57 and a two-hundred day moving average price of $10.97. The company has a current ratio of 2.37, a quick ratio of 1.66 and a debt-to-equity ratio of 0.48.

Methode Electronics (NYSE:MEI - Get Free Report) last posted its quarterly earnings results 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 company had revenue of $298.10 million during the quarter, compared to analyst estimates of $238.46 million. Methode Electronics had a negative net margin of 3.50% and a negative return on equity of 5.59%. As a group, research analysts forecast that Methode Electronics, Inc. will post -0.95 earnings per share for the current fiscal year.

Methode Electronics Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, July 31st. Stockholders of record on Friday, July 17th were given a dividend of $0.05 per share. The ex-dividend date of this dividend was Friday, July 17th. This represents a $0.20 annualized dividend and a dividend yield of 1.2%. Methode Electronics's payout ratio is presently -19.80%.

Institutional Investors Weigh In On Methode Electronics

Several hedge funds and other institutional investors have recently bought and sold shares of the company. EverSource Wealth Advisors LLC boosted its holdings in Methode Electronics by 1,027.4% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 3,089 shares of the electronics maker's stock valued at $29,000 after purchasing an additional 2,815 shares during the last quarter. Allworth Financial LP acquired a new stake in shares of Methode Electronics during the 2nd quarter worth approximately $40,000. Legal & General Group Plc purchased a new stake in shares of Methode Electronics during the 2nd quarter valued at approximately $65,000. State of Wyoming acquired a new position in Methode Electronics in the first quarter valued at approximately $93,000. Finally, Mackenzie Financial Corp acquired a new position in Methode Electronics in the third quarter valued at approximately $103,000. 95.49% of the stock is currently owned by institutional investors and hedge funds.

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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