Methode Electronics (NYSE:MEI) Shares Up 7.3% - What's Next?

Key Points

• Methode Electronics shares rose 7.3% to $17.22, although trading volume was about 50% below the average daily level.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and average price target of $22.00; targets range from $17.00 to $25.00.
• The company missed quarterly EPS expectations, reporting a loss of $0.30 per share versus an expected loss of $0.11, but revenue exceeded estimates. Methode also maintains a quarterly dividend of $0.05, equal to a 1.2% annualized yield.

Methode Electronics, Inc. (NYSE:MEI - Get Free Report) shares were up 7.3% on Wednesday . The company traded as high as $17.37 and last traded at $17.22. Approximately 333,586 shares were traded during trading, a decline of 50% from the average daily volume of 661,325 shares. The stock had previously closed at $16.05.

Analyst Ratings Changes

MEI has been the subject of a number of recent analyst reports. Wall Street Zen lowered Methode Electronics from a "buy" rating to a "hold" rating in a report on Sunday, August 2nd. Sidoti reissued a "neutral" rating and issued a $17.00 price target on shares of Methode Electronics in a research note on Friday, June 26th. Barrington Research raised Methode Electronics from a "market perform" rating to an "outperform" rating and set a $25.00 price target on the stock in a report on Monday, June 29th. Robert W. Baird lifted their price objective on shares of Methode Electronics from $8.50 to $16.00 and gave the company a "neutral" rating in a research note on Friday, June 26th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Methode Electronics in a report on Friday, July 17th. Two equities 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. Based on data from MarketBeat, Methode Electronics presently has a consensus rating of "Hold" and an average target price of $22.00.

Methode Electronics Trading Up 7.3%

The company has a current ratio of 2.37, a quick ratio of 1.66 and a debt-to-equity ratio of 0.48. The firm has a 50-day moving average price of $15.66 and a 200-day moving average price of $11.02. The company has a market capitalization of $610.83 million, a price-to-earnings ratio of -17.05 and a beta of 1.50.

Methode Electronics (NYSE:MEI - Get Free Report) last released its earnings results on Wednesday, June 24th. The electronics maker reported ($0.30) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.11) by ($0.19). Methode Electronics had a negative return on equity of 5.59% and a negative net margin of 3.50%.The firm had revenue of $298.10 million for the quarter, compared to analyst estimates of $238.46 million. As a group, sell-side analysts predict that Methode Electronics, Inc. will post -0.95 EPS for the current year.

Methode Electronics Dividend Announcement

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

Hedge Funds Weigh In On Methode Electronics

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

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source