Methode Electronics (NYSE:MEI) Shares Up 6.4% - Should You Buy?

Key Points

• Methode Electronics shares rose 6.4% to about $14.46, although trading volume was 72% below the average daily level.
• Analyst sentiment remains mixed: the stock has a consensus “Hold” rating and a $22 average price target, with targets ranging from $16 to $30.
• The company beat quarterly revenue and EPS expectations, reporting $265.4 million in revenue and a $0.22-per-share loss, while institutional investors own a substantial 95.49% of outstanding shares.

Methode Electronics, Inc. (NYSE:MEI - Get Free Report) shot up 6.4% during mid-day trading on Friday . The company traded as high as $14.48 and last traded at $14.4550. Approximately 187,977 shares traded hands during trading, a decline of 72% from the average daily volume of 680,849 shares. The stock had previously closed at $13.59.

Analyst Upgrades and Downgrades

Several analysts have commented on MEI shares. Zacks Research raised Methode Electronics from a "strong sell" rating to a "hold" rating in a research note on Tuesday, August 4th. Robert W. Baird lifted their target price on Methode Electronics from $8.50 to $16.00 and gave the company a "neutral" rating in a research note on Friday, June 26th. 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. Craig Hallum initiated coverage on Methode Electronics in a report on Tuesday, August 25th. They set a "buy" rating and a $30.00 price target for the company. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of Methode Electronics in a research report on Friday, July 17th. Two investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $22.00.

Methode Electronics Price Performance

The stock has a fifty day simple moving average of $15.79 and a two-hundred day simple moving average of $11.65. The company has a market cap of $512.57 million, a PE ratio of -13.89 and a beta of 1.54. The company has a current ratio of 2.41, a quick ratio of 1.65 and a debt-to-equity ratio of 0.47.

Methode Electronics (NYSE:MEI - Get Free Report) last issued its earnings results on Wednesday, September 2nd. The electronics maker reported ($0.22) earnings per share (EPS) for the quarter, topping 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 business had revenue of $265.40 million during the quarter, compared to the consensus estimate of $238.31 million. On average, equities analysts predict that Methode Electronics, Inc. will post -0.81 EPS for the current fiscal year.

Institutional Investors Weigh In On Methode Electronics

Several institutional investors have recently made changes to their positions in the stock. Allworth Financial LP raised its stake in Methode Electronics by 123.6% during the second quarter. Allworth Financial LP now owns 2,115 shares of the electronics maker's stock valued at $40,000 after buying an additional 1,169 shares in the last quarter. EverSource Wealth Advisors LLC lifted its position in shares of 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 worth $29,000 after buying an additional 2,815 shares during the last quarter. Integrated Wealth Concepts LLC bought a new position in shares of Methode Electronics in the 2nd quarter worth about $64,000. Legal & General Group Plc acquired a new position in shares of Methode Electronics in the 2nd quarter valued at about $65,000. Finally, Mercer Global Advisors Inc. ADV grew its position in shares of Methode Electronics by 21.0% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 21,781 shares of the electronics maker's stock valued at $145,000 after buying an additional 3,778 shares during the last quarter. 95.49% of the stock is currently owned by hedge funds and other institutional investors.

Methode Electronics Company Profile

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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