Methode Electronics (NYSE:MEI) Trading 4.6% Higher - Still a Buy?

Key Points

• Methode Electronics shares rose 4.6% to $14.145 during mid-day trading, although trading volume was 78% below the average.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $22; targets range from $16 to $30.
• The company exceeded quarterly revenue and adjusted EPS expectations, but remained unprofitable, reporting a negative net margin and forecasting full-year EPS of approximately -$0.81. Methode also declared a quarterly dividend of $0.05 per share, yielding about 1.4% annually.

Methode Electronics, Inc. (NYSE:MEI - Get Free Report)'s stock price was up 4.6% during mid-day trading on Wednesday . The company traded as high as $14.44 and last traded at $14.1450. Approximately 150,665 shares traded hands during mid-day trading, a decline of 78% from the average daily volume of 675,598 shares. The stock had previously closed at $13.52.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on MEI shares. Wall Street Zen downgraded shares of Methode Electronics from a "buy" rating to a "hold" rating in a report on Sunday, August 2nd. Craig Hallum initiated 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. Sidoti reiterated a "neutral" rating and issued a $17.00 price target on shares of Methode Electronics in a report on Friday, June 26th. Robert W. Baird increased their price target on Methode Electronics from $8.50 to $16.00 and gave the stock a "neutral" rating 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 issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Methode Electronics currently has a consensus rating of "Hold" and an average price target of $22.00.

Methode Electronics Stock Up 6.9%

The stock has a fifty day moving average price of $15.43 and a 200-day moving average price of $11.93. The firm has a market cap of $515.32 million, a PE ratio of -13.83 and a beta of 1.54. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.65 and a current ratio of 2.41.

Methode Electronics (NYSE:MEI - Get Free Report) last posted its quarterly 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. Methode Electronics had a negative net margin of 3.52% and a negative return on equity of 5.63%. The firm had revenue of $265.40 million for the quarter, compared to analyst estimates of $238.31 million. Research analysts expect that Methode Electronics, Inc. will post -0.81 EPS for the current year.

Methode Electronics Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 30th. Investors of record on Friday, October 16th will be issued a dividend of $0.05 per share. The ex-dividend date is Friday, October 16th. This represents a $0.20 annualized dividend and a dividend yield of 1.4%. Methode Electronics's payout ratio is presently -19.23%.

Institutional Trading of Methode Electronics

Large investors have recently added to or reduced their stakes in the stock. Sei Investments Co. raised its holdings in shares of Methode Electronics by 87.7% during the 1st quarter. Sei Investments Co. now owns 465,973 shares of the electronics maker's stock valued at $2,572,000 after buying an additional 217,764 shares during the period. BlackRock Inc. purchased a new position in Methode Electronics in the 2nd quarter worth approximately $65,727,000. Empowered Funds LLC boosted its holdings in Methode Electronics by 51.2% in the 1st quarter. Empowered Funds LLC now owns 632,346 shares of the electronics maker's stock worth $3,491,000 after acquiring an additional 214,224 shares during the period. Bank of New York Mellon Corp acquired a new stake in Methode Electronics in the second quarter valued at approximately $5,233,000. Finally, Deutsche Bank AG acquired a new stake in Methode Electronics in the second quarter valued at approximately $4,982,000. 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 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.

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