Methode Electronics (NYSE:MEI) Shares Gap Up – Still a Buy?

Methode Electronics, Inc. (NYSE:MEI) shares gapped up before the market opened on Tuesday . The stock had previously closed at $14.03, but opened at $15.73. Methode Electronics shares last traded at $16.0060, with a volume of 44,096 shares traded.

Analyst Ratings Changes

A number of equities analysts have commented on MEI shares. Sidoti restated a “neutral” rating and issued a $17.00 target price on shares of Methode Electronics in a research note on Friday, June 26th. Weiss Ratings reissued a “sell (d-)” rating on shares of Methode Electronics in a report on Friday, July 17th. Zacks Research upgraded Methode Electronics from a “strong sell” rating to a “hold” rating in a research report on Tuesday, August 4th. Craig Hallum began coverage on shares of Methode Electronics in a report on Tuesday. They set a “buy” rating and a $30.00 price target for the company. Finally, Wall Street Zen lowered shares of Methode Electronics from a “buy” rating to a “hold” rating in a research report on Sunday, August 2nd. 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 company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $22.00.

Methode Electronics Stock Up 6.7%

The company has a market cap of $607.25 million, a price-to-earnings ratio of -16.95 and a beta of 1.50. The stock has a 50-day simple moving average of $15.77 and a 200-day simple moving average of $11.08. The company has a current ratio of 2.37, a quick ratio of 1.66 and a debt-to-equity ratio of 0.48.

Methode Electronics (NYSE:MEI) last issued its quarterly earnings results on Wednesday, June 24th. The electronics maker reported ($0.30) EPS for the quarter, missing analysts’ consensus estimates of ($0.11) by ($0.19). The business had revenue of $298.10 million for the quarter, compared to analyst estimates of $238.46 million. Methode Electronics had a negative net margin of 3.50% and a negative return on equity of 5.59%. As a group, analysts predict that Methode Electronics, Inc. will post -0.95 EPS for the current year.

Methode Electronics Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, July 31st. Shareholders of record on Friday, July 17th were given a dividend of $0.05 per share. This represents a $0.20 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date was Friday, July 17th. Methode Electronics’s payout ratio is -19.80%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Allworth Financial LP purchased a new position in shares of Methode Electronics during the 2nd quarter valued at $40,000. Strs Ohio grew its stake in Methode Electronics by 10.0% in the fourth quarter. Strs Ohio now owns 26,300 shares of the electronics maker’s stock valued at $175,000 after purchasing an additional 2,400 shares in the last quarter. EverSource Wealth Advisors LLC increased its position in Methode Electronics by 1,027.4% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 3,089 shares of the electronics maker’s stock worth $29,000 after purchasing an additional 2,815 shares during the last quarter. Legal & General Group Plc purchased a new stake in shares of Methode Electronics during the 2nd quarter worth about $65,000. Finally, Mercer Global Advisors Inc. ADV raised its stake in shares of Methode Electronics by 21.0% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 21,781 shares of the electronics maker’s stock worth $145,000 after purchasing an additional 3,778 shares in the last quarter. 95.49% of the stock is currently owned by institutional investors.

About Methode Electronics

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.