Methode Electronics (NYSE:MEI) Stock Price Up 7.7% - Time to Buy?

Key Points

• Methode Electronics shares rose 7.7% to $16.51, although trading volume was 89% below average.
• Analyst sentiment remains mixed: the stock has two Buy, three Hold, and one Sell rating, producing an overall Hold consensus and an average price target of $22.
• The company beat quarterly expectations, reporting an adjusted loss of $0.22 per share versus the $0.27 estimate and revenue of $265.4 million versus $238.3 million expected. Methode also pays a $0.20 annualized dividend, yielding about 1.2%.

Methode Electronics, Inc. (NYSE:MEI - Get Free Report) shot up 7.7% on Friday . The company traded as high as $16.90 and last traded at $16.5050. Approximately 76,370 shares changed hands during mid-day trading, a decline of 89% from the average session volume of 674,762 shares. The stock had previously closed at $15.32.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on the company. Barrington Research upgraded Methode Electronics from a "market perform" rating to an "outperform" rating and set a $25.00 price objective on the stock in a report on Monday, June 29th. Craig Hallum assumed coverage on shares of Methode Electronics in a research report on Tuesday, August 25th. They set a "buy" rating and a $30.00 target price on the stock. Zacks Research raised shares of Methode Electronics from a "strong sell" rating to a "hold" rating in a research report on Tuesday, August 4th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Methode Electronics in a research note on Friday, July 17th. Finally, Wall Street Zen lowered Methode Electronics from a "buy" rating to a "hold" rating in a report on Sunday, August 2nd. Two equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $22.00.

Methode Electronics Price Performance

The stock's 50-day moving average is $16.15 and its 200 day moving average is $11.45. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.66 and a current ratio of 2.37. The stock has a market capitalization of $570.11 million, a PE ratio of -15.37 and a beta of 1.54.

Methode Electronics (NYSE:MEI - Get Free Report) last released its quarterly earnings data on Wednesday, September 2nd. The electronics maker reported ($0.22) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.27) by $0.05. The company had revenue of $265.40 million during the quarter, compared to the consensus estimate of $238.31 million. Methode Electronics had a negative net margin of 3.52% and a negative return on equity of 5.60%. As a group, equities analysts expect that Methode Electronics, Inc. will post -0.95 earnings per share 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 given a dividend of $0.05 per share. 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 (DPR) is -19.80%.

Hedge Funds Weigh In On Methode Electronics

A number of large investors have recently bought and sold shares of MEI. BlackRock Inc. acquired a new stake in Methode Electronics in the second quarter valued at about $65,727,000. AIGH Capital Management LLC acquired a new stake in Methode Electronics in the 2nd quarter valued at about $31,839,000. Empowered Funds LLC acquired a new stake in shares of Methode Electronics during the second quarter valued at $11,882,000. 4D Advisors LLC acquired a new stake in Methode Electronics during the fourth quarter worth approximately $3,320,000. Finally, UBS Group AG increased its stake in Methode Electronics by 887.1% in the third quarter. UBS Group AG now owns 476,974 shares of the electronics maker's stock valued at $3,601,000 after purchasing an additional 428,654 shares during the last quarter. Hedge funds and other institutional investors own 95.49% of the company's stock.

Methode Electronics Company Profile

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.

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