Methode Electronics (NYSE:MEI) Stock Crosses Above 50 Day Moving Average - Here's Why

Key Points

• Methode Electronics shares rose above their 50-day moving average, reaching $15.64 compared with the $14.76 average, and last traded at about $15.16.
• Analyst sentiment is mixed but leans positive: the stock has a consensus rating of “Moderate Buy” and an average price target of $22.00, despite recent upgrades and downgrades ranging from Strong Buy to Sell.
• The company beat quarterly revenue and earnings expectations, reporting revenue of $265.4 million and an adjusted loss of $0.22 per share; it also maintains a quarterly dividend of $0.05 per share, yielding approximately 1.3%.

Methode Electronics, Inc. (NYSE:MEI - Get Free Report)'s stock price passed above its 50-day moving average during trading on Monday. The stock has a 50-day moving average of $14.76 and traded as high as $15.64. Methode Electronics shares last traded at $15.1620, with a volume of 869,876 shares trading hands.

Analyst Ratings Changes

A number of brokerages have recently issued reports on MEI. Wall Street Zen lowered shares of Methode Electronics from a "buy" rating to a "hold" rating in a research note on Sunday, August 2nd. Craig Hallum assumed coverage on shares of Methode Electronics in a research report on Tuesday, August 25th. They issued a "buy" rating and a $30.00 price objective for the company. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Methode Electronics in a report on Thursday, October 15th. Finally, Zacks Research raised Methode Electronics from a "hold" rating to a "strong-buy" rating in a report on Monday, October 26th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, Methode Electronics currently has an average rating of "Moderate Buy" and an average target price of $22.00.

Methode Electronics Trading Up 3.0%

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 business has a fifty day simple moving average of $14.76 and a 200 day simple moving average of $11.67. The company has a market cap of $540.53 million, a price-to-earnings ratio of -14.58 and a beta of 1.57.

Methode Electronics (NYSE:MEI - Get Free Report) last posted its quarterly earnings results on Wednesday, September 2nd. The electronics maker reported ($0.22) earnings per share for the quarter, topping analysts' consensus estimates of ($0.27) by $0.05. The business had revenue of $265.40 million for the quarter, compared to analysts' expectations of $238.31 million. Methode Electronics had a negative net margin of 3.52% and a negative return on equity of 5.63%. On average, equities analysts anticipate that Methode Electronics, Inc. will post -0.81 EPS for the current fiscal year.

Methode Electronics Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, October 30th. Investors of record on Friday, October 16th were issued a dividend of $0.05 per share. The ex-dividend date of this dividend was Friday, October 16th. This represents a $0.20 dividend on an annualized basis and a yield of 1.3%. Methode Electronics's payout ratio is currently -19.23%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in 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 acquired a new stake in shares of Methode Electronics during the 3rd quarter worth about $29,000. Integrated Wealth Concepts LLC acquired a new stake in shares of Methode Electronics during the 2nd quarter worth about $64,000. Legal & General Group Plc acquired a new stake in shares of Methode Electronics during the 2nd quarter worth about $65,000. Finally, Quantbot Technologies LP purchased a new stake in shares of Methode Electronics during the second quarter worth about $212,000. 95.49% of the stock is currently owned by institutional investors and hedge funds.

About Methode Electronics

Methode Electronics, Inc NYSE: MEI is a global designer and manufacturer of engineered electrical and electronic products. The company develops solutions that enable sensing, control, illumination, power distribution, and human-machine interaction across a range of markets.

Its products include sensors and switches, user-interface controls, LED lighting systems, power-distribution and interconnect products, and other customized electronic and electromechanical components. Methode serves customers in the automotive, industrial, aerospace, medical, construction equipment, data communications, and consumer markets.

Founded in 1946 and headquartered in Chicago, Illinois, Methode Electronics serves customers internationally through operations and facilities in North America, Europe, and Asia.

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