Methode Electronics (NYSE:MEI) Shares Down 9.7% – Should You Sell?

Methode Electronics, Inc. (NYSE:MEI) shares fell 9.7% during mid-day trading on Tuesday . The stock traded as low as $16.17 and last traded at $16.3350. Approximately 99,808 shares were traded during mid-day trading, a decline of 85% from the average session volume of 661,341 shares. The stock had previously closed at $18.08.

Analysts Set New Price Targets

A number of equities analysts have commented on MEI shares. Sidoti reiterated a “neutral” rating and issued a $17.00 target price on shares of Methode Electronics in a report on Friday, June 26th. Robert W. Baird lifted their price objective on shares of Methode Electronics from $8.50 to $16.00 and gave the stock a “neutral” rating in a research report on Friday, June 26th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Methode Electronics in a research note on Friday, July 17th. Barrington Research upgraded 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 research note on Monday, June 29th. Finally, Zacks Research raised shares of Methode Electronics from a “strong sell” rating to a “hold” rating in a research report on Tuesday, August 4th. One equities research analyst has 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. According to data from MarketBeat, Methode Electronics currently has an average rating of “Hold” and a consensus target price of $19.33.

Methode Electronics Stock Down 12.4%

The firm has a market capitalization of $561.67 million, a price-to-earnings ratio of -15.68 and a beta of 1.50. The company has a quick ratio of 1.66, a current ratio of 2.37 and a debt-to-equity ratio of 0.48. The company’s 50 day moving average price is $15.25 and its 200 day moving average price is $10.74.

Methode Electronics (NYSE:MEI) last released its earnings results on Wednesday, June 24th. The electronics maker reported ($0.30) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.11) by ($0.19). The firm had revenue of $298.10 million during 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, research analysts forecast that Methode Electronics, Inc. will post -0.95 earnings per share for the current fiscal year.

Methode Electronics Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, July 31st. Stockholders of record on Friday, July 17th were issued a $0.05 dividend. The ex-dividend date of this dividend was Friday, July 17th. This represents a $0.20 dividend on an annualized basis and a dividend yield of 1.3%. Methode Electronics’s dividend payout ratio is currently -19.80%.

Institutional Investors Weigh In On Methode Electronics

A number of institutional investors and hedge funds have recently modified their holdings of MEI. Empowered Funds LLC purchased a new stake in Methode Electronics in the second quarter valued at approximately $11,882,000. Bank of America Corp DE purchased a new position in Methode Electronics during the 2nd quarter worth approximately $1,911,000. Legal & General Group Plc acquired a new stake in Methode Electronics during the 2nd quarter valued at approximately $65,000. Connor Clark & Lunn Investment Management Ltd. acquired a new stake in Methode Electronics during the 2nd quarter valued at approximately $2,468,000. Finally, Quantbot Technologies LP purchased a new stake in shares of Methode Electronics in the 2nd quarter valued at $212,000. Institutional investors and hedge funds own 95.49% of the company’s stock.

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.