Methode Electronics (NYSE:MEI) Shares Gap Down – Time to Sell?

Methode Electronics, Inc. (NYSE:MEI) gapped down prior to trading on Thursday . The stock had previously closed at $18.10, but opened at $15.09. Methode Electronics shares last traded at $15.4450, with a volume of 284,814 shares changing hands.

Methode Electronics News Summary

Here are the key news stories impacting Methode Electronics this week:

• Positive Sentiment: Fiscal Q1 2027 revenue rose 10.4% year over year to $265.4 million, exceeding analysts’ expectations of approximately $238.3 million. Industrial sales increased 27% to $156.8 million, supported by data-center, on-highway and off-highway lighting demand. Methode Electronics falls despite 10% rise in Q1 sales
• Positive Sentiment: Methode booked $75 million of peak annual revenue from new non-data-center awards, representing roughly $400 million of lifetime revenue and signaling potential future growth beyond its data-center exposure. Methode Electronics Reports Fiscal Q1 2027 Results
• Positive Sentiment: The company repaid $10.1 million of debt during the quarter and extended certain revolving-credit maturities to October 2028, improving near-term financial flexibility despite reducing the facility size to $375 million. Methode Electronics Fiscal 2027 Results
• Neutral Sentiment: Adjusted EPS was a loss of $0.22, beating estimates for a loss of $0.27 to $0.47, depending on the consensus measure. Methode reaffirmed fiscal 2027 revenue guidance of $1.025 billion to $1.075 billion and adjusted EBITDA guidance of $72 million to $82 million. Methode Reports Q1 Loss, Beats Revenue Estimates
• Negative Sentiment: GAAP net loss widened to $11.4 million, or $0.32 per share, from $10.3 million a year earlier. Adjusted EBITDA declined to $13.7 million from $15.7 million, while operating income fell to a loss of $3.9 million from income of $1.1 million.
• Negative Sentiment: Operating cash flow swung to a $7.8 million outflow from a $25.1 million inflow, and free cash flow was negative $10.9 million. Higher selling and administrative expenses, one-time divestiture costs and investments in talent and capabilities offset the benefit of higher revenue.
• Negative Sentiment: Automotive revenue was essentially flat and Interface revenue plunged following the dataMate divestiture and consumer-appliance program roll-offs, highlighting the company’s dependence on Industrial growth to drive its turnaround.

Analysts Set New Price Targets

Several research analysts have recently commented on MEI shares. Sidoti reaffirmed a “neutral” rating and set a $17.00 target price on shares of Methode Electronics in a report on Friday, June 26th. Craig Hallum started coverage on Methode Electronics in a research note on Tuesday, August 25th. They issued a “buy” rating and a $30.00 price target for the company. Weiss Ratings reissued a “sell (d-)” rating on shares of Methode Electronics in a research report on Friday, July 17th. Robert W. Baird raised their price objective 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, Barrington Research raised 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. Two research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $22.00.

Methode Electronics Price Performance

The stock has a market capitalization of $597.00 million, a price-to-earnings ratio of -16.97 and a beta of 1.54. 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 business’s 50 day simple moving average is $16.21 and its 200-day simple moving average is $11.40.

Methode Electronics (NYSE:MEI) last issued its 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 3.50% and a negative return on equity of 5.59%. The company had revenue of $265.40 million during the quarter, compared to analysts’ expectations of $238.31 million. On average, research analysts forecast that Methode Electronics, Inc. will post -0.95 earnings per share for the current year.

Methode Electronics Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, July 31st. Investors of record on Friday, July 17th were paid a $0.05 dividend. This represents a $0.20 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date of this dividend was Friday, July 17th. Methode Electronics’s dividend payout ratio (DPR) is -19.80%.

Institutional Investors Weigh In On Methode Electronics

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Empowered Funds LLC increased its stake in shares of Methode Electronics by 8.3% in the 1st quarter. Empowered Funds LLC now owns 127,268 shares of the electronics maker’s stock valued at $812,000 after purchasing an additional 9,787 shares during the last quarter. Strs Ohio bought a new stake in shares of Methode Electronics during the 1st quarter worth $133,000. JPMorgan Chase & Co. lifted its position in shares of Methode Electronics by 10.0% during the 2nd quarter. JPMorgan Chase & Co. now owns 191,757 shares of the electronics maker’s stock worth $1,824,000 after buying an additional 17,418 shares during the last quarter. Franklin Resources Inc. acquired a new stake in Methode Electronics in the second quarter valued at about $234,000. Finally, XTX Topco Ltd acquired a new stake in Methode Electronics in the second quarter valued at about $107,000. 95.49% of the stock is currently owned by institutional investors.

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.