Methode Electronics (NYSE:MEI) Stock Jumps 4.7% - Here's Why

Key Points

• Methode Electronics shares rose 4.7% to about $15.82 in mid-day trading, although volume was 81% below the average session level.
• Recent analyst opinions remain mixed, resulting in a consensus “Hold” rating and an average price target of $22.00; targets range from $16.00 to $30.00.
• The company exceeded quarterly expectations, reporting an adjusted loss of $0.22 per share versus the expected $0.27 loss and revenue of $265.4 million versus estimates of $238.3 million. It also declared a quarterly dividend of $0.05 per share, yielding approximately 1.3% annually.

Shares of Methode Electronics, Inc. (NYSE:MEI - Get Free Report) rose 4.7% during mid-day trading on Thursday. The company traded as high as $15.64 and last traded at $15.8210. Approximately 128,993 shares were traded during mid-day trading, a decline of 81% from the average session volume of 672,385 shares. The stock had previously closed at $15.11.

Analyst Upgrades and Downgrades

MEI has been the topic of a number of analyst reports. Robert W. Baird increased their price target on Methode Electronics from $8.50 to $16.00 and gave the company a "neutral" rating in a research note on Friday, June 26th. Craig Hallum assumed coverage on Methode Electronics in a research note on Tuesday, August 25th. They set a "buy" rating and a $30.00 price objective for the company. Wall Street Zen downgraded 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 target price on shares of Methode Electronics in a research note on Friday, June 26th. Finally, Zacks Research upgraded Methode Electronics from a "strong sell" rating to a "hold" rating in a report on Tuesday, August 4th. Two analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average price target of $22.00.

Methode Electronics Price Performance

The stock has a market cap of $549.87 million, a price-to-earnings ratio of -14.88 and a beta of 1.57. The company has a 50 day simple moving average of $15.30 and a 200-day simple moving average of $12.63. 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 released 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 firm had revenue of $265.40 million during the quarter, compared to the consensus estimate of $238.31 million. Methode Electronics had a negative return on equity of 5.63% and a negative net margin of 3.52%. Research analysts expect that Methode Electronics, Inc. will post -0.81 EPS for the current year.

Methode Electronics Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 30th. Investors of record on Friday, October 16th will be paid a $0.05 dividend. This represents a $0.20 dividend on an annualized basis and a yield of 1.3%. The ex-dividend date is Friday, October 16th. Methode Electronics's dividend payout ratio is -19.23%.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of MEI. BlackRock Inc. bought a new stake in shares of Methode Electronics during the 2nd quarter valued at $65,727,000. AIGH Capital Management LLC acquired a new stake in shares of Methode Electronics during the 2nd quarter worth $31,839,000. Dimensional Fund Advisors LP increased its position in shares of Methode Electronics by 4.1% in the first quarter. Dimensional Fund Advisors LP now owns 1,351,962 shares of the electronics maker's stock worth $7,463,000 after purchasing an additional 52,821 shares during the period. Empowered Funds LLC increased its position in shares of Methode Electronics by 51.2% in the first quarter. Empowered Funds LLC now owns 632,346 shares of the electronics maker's stock worth $3,491,000 after purchasing an additional 214,224 shares during the period. Finally, 4D Advisors LLC acquired a new position in Methode Electronics in the fourth quarter valued at about $3,320,000. 95.49% of the stock is owned by institutional investors.

Methode Electronics Company Profile

Methode Electronics, Inc is a global designer and manufacturer of custom-engineered electrical and electronic products. The company develops solutions that connect, control, sense and illuminate systems for original equipment manufacturers and other industrial customers.

Its products include sensors, switches and other user-interface components; LED lighting systems; power distribution and management products; flexible circuits and interconnect technologies; and electronic and electromechanical assemblies.

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