Methode Electronics (NYSE:MEI) Stock Jumps 7.7% - Still a Buy?

Key Points

• Methode Electronics shares rose 7.7% to approximately $15.39, though trading volume was 79% below the average daily level.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $22; individual targets range from $16 to $30.
• The company beat quarterly revenue and adjusted EPS expectations, but remains unprofitable, with analysts forecasting a full-year loss and a $0.20 annual dividend yielding about 1.3%.

Methode Electronics, Inc. (NYSE:MEI - Get Free Report)'s share price was up 7.7% during mid-day trading on Friday. The company traded as high as $15.37 and last traded at $15.3850. 138,842 shares traded hands during trading, a decline of 79% from the average daily volume of 673,583 shares. The stock had previously closed at $14.29.

Analyst Upgrades and Downgrades

MEI has been the topic of several analyst reports. Wall Street Zen lowered shares of Methode Electronics from a "buy" rating to a "hold" rating in a research note on Sunday, August 2nd. Zacks Research upgraded Methode Electronics from a "strong sell" rating to a "hold" rating in a research report on Tuesday, August 4th. Robert W. Baird raised their price target on Methode Electronics from $8.50 to $16.00 and gave the company a "neutral" rating in a report on Friday, June 26th. Barrington Research raised shares of Methode Electronics from a "market perform" rating to an "outperform" rating and set a $25.00 price objective for the company in a report on Monday, June 29th. Finally, Craig Hallum started coverage on shares of Methode Electronics in a research note on Tuesday, August 25th. They issued a "buy" rating and a $30.00 price target for the company. Two research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Methode Electronics presently has a consensus rating of "Hold" and an average price target of $22.00.

Methode Electronics Price Performance

The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.65 and a current ratio of 2.41. The company's 50 day moving average price is $15.23 and its 200-day moving average price is $12.35. The company has a market cap of $548.65 million, a price-to-earnings ratio of -14.78 and a beta of 1.57.

Methode Electronics (NYSE:MEI - Get Free Report) last released its earnings results on Wednesday, September 2nd. The electronics maker reported ($0.22) EPS for the quarter, beating the consensus estimate of ($0.27) by $0.05. The business 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%. On average, equities research analysts forecast that Methode Electronics, Inc. will post -0.81 earnings per share for the current fiscal year.

Methode Electronics Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 30th. Stockholders of record on Friday, October 16th will be paid a dividend of $0.05 per share. The ex-dividend date of this dividend is Friday, October 16th. This represents a $0.20 annualized dividend and a dividend yield of 1.3%. Methode Electronics's dividend payout ratio (DPR) is currently -19.23%.

Institutional Investors Weigh In On Methode Electronics

Hedge funds have recently modified their holdings of the stock. BlackRock Inc. purchased a new position in Methode Electronics in the 2nd quarter worth about $65,727,000. AIGH Capital Management LLC purchased a new position in shares of Methode Electronics in the second quarter worth approximately $31,839,000. Empowered Funds LLC acquired a new stake in shares of Methode Electronics during the second quarter valued at approximately $11,882,000. Dimensional Fund Advisors LP lifted its position in shares of Methode Electronics by 4.1% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,351,962 shares of the electronics maker's stock valued at $7,463,000 after acquiring an additional 52,821 shares in the last quarter. Finally, Bank of New York Mellon Corp acquired a new position in Methode Electronics in the 2nd quarter worth approximately $5,233,000. 95.49% of the stock is owned by hedge funds and other institutional investors.

Methode Electronics Company Profile

Methode Electronics, Inc NYSE: MEI is a global designer and manufacturer of custom-engineered products and solutions for automotive, industrial, aerospace, commercial and other specialized markets. The company develops technologies that help customers manage electrical power, transmit signals, sense operating conditions and control equipment.

Its product portfolio includes sensors and sensor-based systems, user-interface and control products, LED lighting and display solutions, power distribution and electrical components, connectors, and other electromechanical assemblies.

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.