Wall Street Zen Upgrades Methode Electronics (NYSE:MEI) to "Buy"

Key Points

• Wall Street Zen upgraded Methode Electronics from “hold” to “buy”, but the broader analyst view remains cautious with a consensus rating of “Reduce” and an average target price of $19.33.
• The stock was down 4.3% and opened at $15.34, with shares trading well above their 200-day average but still below the 52-week high of $20.38.
• Methode Electronics reported Q3 EPS of -$0.30, missing expectations, though revenue came in at $298.1 million, above analyst estimates. The company also has significant institutional ownership, with 95.49% of shares held by funds and hedge funds.

Methode Electronics (NYSE:MEI - Get Free Report) was upgraded by equities researchers at Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued on Saturday.

Several other research analysts have also commented on the stock. Weiss Ratings reiterated a "sell (d-)" rating on shares of Methode Electronics in a research note on Friday, July 17th. Zacks Research lowered shares of Methode Electronics from a "hold" rating to a "strong sell" rating in a report on Tuesday, June 30th. Robert W. Baird upped their price target on Methode Electronics from $8.50 to $16.00 and gave the stock a "neutral" rating in a research report on Friday, June 26th. Barrington Research upgraded 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, Sidoti reissued a "neutral" rating and issued a $17.00 price objective on shares of Methode Electronics in a research report on Friday, June 26th. One analyst has rated the stock with a Buy rating, two have given a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Reduce" and a consensus target price of $19.33.

Methode Electronics Trading Down 4.3%

NYSE MEI opened at $15.34 on Friday. 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 company has a market capitalization of $544.11 million, a price-to-earnings ratio of -15.19 and a beta of 1.47. The company's 50-day simple moving average is $13.89 and its two-hundred day simple moving average is $9.77. Methode Electronics has a one year low of $4.88 and a one year high of $20.38.

Methode Electronics (NYSE:MEI - Get Free Report) last announced its quarterly earnings results on Wednesday, June 24th. The electronics maker reported ($0.30) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.11) by ($0.19). Methode Electronics had a negative net margin of 3.50% and a negative return on equity of 5.59%. The company had revenue of $298.10 million during the quarter, compared to analysts' expectations of $238.46 million. Equities analysts forecast that Methode Electronics will post -0.95 EPS for the current fiscal year.

Institutional Investors Weigh In On Methode Electronics

Several hedge funds and other institutional investors have recently added to or reduced their stakes in MEI. JPMorgan Chase & Co. grew its holdings in Methode Electronics by 51.8% during the third quarter. JPMorgan Chase & Co. now owns 291,065 shares of the electronics maker's stock worth $2,198,000 after acquiring an additional 99,308 shares during the period. Tudor Investment Corp ET AL lifted its holdings in Methode Electronics by 84.8% in the third quarter. Tudor Investment Corp ET AL now owns 162,766 shares of the electronics maker's stock valued at $1,229,000 after acquiring an additional 74,701 shares during the period. 4D Advisors LLC acquired a new position in Methode Electronics in the fourth quarter valued at approximately $3,320,000. Penn Capital Management Company LLC boosted its position in Methode Electronics by 66.9% in the 4th quarter. Penn Capital Management Company LLC now owns 296,267 shares of the electronics maker's stock worth $1,967,000 after purchasing an additional 118,749 shares in the last quarter. Finally, Marquette Asset Management LLC purchased a new stake in Methode Electronics in the 2nd quarter worth approximately $370,000. 95.49% of the stock is owned by institutional investors and hedge funds.

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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