Methode Electronics (NYSE:MEI) Stock Crosses Below 200 Day Moving Average - Here's Why

Key Points

• Methode Electronics shares fell below their 200-day moving average, reaching $11.38 and closing at $11.82, below the $11.89 average.
• Analysts have a consensus “Moderate Buy” rating and a $22 price target, though recommendations range from Strong Buy to Sell.
• The company beat quarterly earnings and revenue estimates, but still reported a loss; it also pays a quarterly dividend of $0.05 per share.

Methode Electronics, Inc. (NYSE:MEI - Get Free Report)'s stock price crossed below its 200-day moving average during trading on Friday. The stock has a 200-day moving average of $11.89 and traded as low as $11.38. Methode Electronics shares last traded at $11.82, with a volume of 485,031 shares trading hands.

Analyst Upgrades and Downgrades

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

Methode Electronics Trading Down 4.9%

The stock has a market capitalization of $421.32 million, a P/E ratio of -11.37 and a beta of 1.60. The stock's fifty day moving average price is $13.90 and its 200 day moving average price is $11.89. The company has a debt-to-equity ratio of 0.47, a current ratio of 2.41 and a quick ratio of 1.65.

Methode Electronics (NYSE:MEI - Get Free Report) last announced 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. The company had revenue of $265.40 million during the quarter, compared to analyst estimates of $238.31 million. Methode Electronics had a negative net margin of 3.52% and a negative return on equity of 5.63%. Research analysts forecast that Methode Electronics, Inc. will post -0.81 earnings per share for the current year.

Methode Electronics Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, October 30th. Investors of record on Friday, October 16th were issued a $0.05 dividend. The ex-dividend date was Friday, October 16th. This represents a $0.20 dividend on an annualized basis and a dividend yield of 1.7%. Methode Electronics's payout ratio is presently -19.23%.

Institutional Investors Weigh In On Methode Electronics

Institutional investors and hedge funds have recently bought and sold shares of the company. BlackRock Inc. bought a new position in Methode Electronics during the 2nd quarter worth about $65,727,000. AIGH Capital Management LLC purchased a new position in Methode Electronics during the 2nd quarter valued at about $31,839,000. Empowered Funds LLC purchased a new position in Methode Electronics during the 2nd quarter valued at about $11,882,000. Bank of New York Mellon Corp bought a new stake in shares of Methode Electronics in the 2nd quarter valued at about $5,233,000. Finally, Deutsche Bank AG bought a new stake in shares of Methode Electronics in the 2nd quarter valued at about $4,982,000. 95.49% of the stock is owned by institutional investors.

About Methode Electronics

Methode Electronics designs and manufactures engineered components and subsystems for automotive, industrial and other markets. Its products include electronic controls, sensors, switches, lighting, power distribution systems and custom electrical assemblies. In the automotive market, the company supplies products used in vehicle interiors and exteriors, including lighting, control interfaces and electronic systems. Its industrial offerings include power products, interface panels, wiring and other electrical solutions for equipment and commercial vehicles.

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