Methode Electronics (NYSE:MEI) Shares Gap Up on Earnings Beat

Methode Electronics, Inc. (NYSE:MEI)’s share price gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $11.61, but opened at $15.20. Methode Electronics shares last traded at $14.97, with a volume of 669,430 shares changing hands.

The electronics maker reported $0.14 earnings per share for the quarter, beating the consensus estimate of ($0.17) by $0.31. Methode Electronics had a negative net margin of 13.15% and a negative return on equity of 3.50%. During the same quarter last year, the company earned $0.06 earnings per share.

Methode Electronics Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, November 1st. Shareholders of record on Friday, October 18th were issued a dividend of $0.14 per share. This represents a $0.56 annualized dividend and a yield of 4.40%. The ex-dividend date was Friday, October 18th. Methode Electronics’s dividend payout ratio (DPR) is presently -13.90%.

Wall Street Analyst Weigh In

MEI has been the topic of several recent research reports. Robert W. Baird upped their price objective on shares of Methode Electronics from $13.00 to $16.00 and gave the company a “neutral” rating in a report on Friday. StockNews.com raised shares of Methode Electronics from a “sell” rating to a “hold” rating in a report on Friday, September 6th.

Insider Buying and Selling

In other news, Director Mary A. Lindsey bought 8,800 shares of the business’s stock in a transaction dated Monday, September 23rd. The shares were purchased at an average price of $11.38 per share, for a total transaction of $100,144.00. Following the completion of the acquisition, the director now owns 25,970 shares of the company’s stock, valued at approximately $295,538.60. This trade represents a 51.25 % increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director David P. Blom bought 9,320 shares of the business’s stock in a transaction dated Wednesday, September 18th. The stock was purchased at an average price of $10.81 per share, for a total transaction of $100,749.20. Following the acquisition, the director now directly owns 37,531 shares of the company’s stock, valued at approximately $405,710.11. The trade was a 33.04 % increase in their position. The disclosure for this purchase can be found here. 1.40% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. nVerses Capital LLC lifted its stake in Methode Electronics by 1,600.0% in the third quarter. nVerses Capital LLC now owns 3,400 shares of the electronics maker’s stock worth $41,000 after acquiring an additional 3,200 shares during the period. Nisa Investment Advisors LLC lifted its stake in Methode Electronics by 749.7% in the second quarter. Nisa Investment Advisors LLC now owns 5,693 shares of the electronics maker’s stock worth $59,000 after acquiring an additional 5,023 shares during the period. CWM LLC lifted its stake in Methode Electronics by 685.1% in the third quarter. CWM LLC now owns 8,730 shares of the electronics maker’s stock worth $104,000 after acquiring an additional 7,618 shares during the period. Hennessy Advisors Inc. purchased a new position in Methode Electronics during the second quarter valued at $111,000. Finally, Quest Partners LLC lifted its position in Methode Electronics by 17.1% during the second quarter. Quest Partners LLC now owns 12,062 shares of the electronics maker’s stock valued at $125,000 after buying an additional 1,758 shares during the period. Institutional investors own 95.49% of the company’s stock.

Methode Electronics Price Performance

The company has a debt-to-equity ratio of 0.40, a current ratio of 2.35 and a quick ratio of 1.50. The firm has a market cap of $448.61 million, a PE ratio of -3.16 and a beta of 0.81. The firm has a 50-day simple moving average of $10.40 and a 200 day simple moving average of $10.80.

Methode Electronics Company Profile

Methode Electronics, Inc designs, engineers, and produces mechatronic products worldwide. It operates through four segments: Automotive, Industrial, Interface, and Medical. The Automotive segment supplies electronic and electro-mechanical devices, and related products to automobile original equipment manufacturers directly or through their tiered suppliers.