Methode Electronics (NYSE:MEI) Shares Gap Down – What’s Next?

Shares of 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.

More Methode Electronics News

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.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on MEI. Sidoti reaffirmed a “neutral” rating and set a $17.00 price target on shares of Methode Electronics in a report on Friday, June 26th. Weiss Ratings reissued a “sell (d-)” rating on shares of Methode Electronics in a research note on Friday, July 17th. Robert W. Baird raised their target price on shares of Methode Electronics from $8.50 to $16.00 and gave the company a “neutral” rating in a research report on Friday, June 26th. Barrington Research raised shares of Methode Electronics from a “market perform” rating to an “outperform” rating and set a $25.00 target price on the stock in a research note on Monday, June 29th. Finally, Craig Hallum began coverage on shares of Methode Electronics in a report on Tuesday, August 25th. They set a “buy” rating and a $30.00 price target for the company. Two research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Methode Electronics presently has a consensus rating of “Hold” and an average target price of $22.00.

Methode Electronics Trading Down 7.0%

The company has a market cap of $597.00 million, a P/E ratio of -16.97 and a beta of 1.54. The firm’s 50 day moving average is $16.21 and its two-hundred day moving average is $11.40. The company has a quick ratio of 1.66, a current ratio of 2.37 and a debt-to-equity ratio of 0.48.

Methode Electronics (NYSE:MEI) last announced its earnings results on Wednesday, September 2nd. The electronics maker reported ($0.22) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.27) by $0.05. The business had revenue of $265.40 million during the quarter, compared to analyst estimates of $238.31 million. Methode Electronics had a negative return on equity of 5.59% and a negative net margin of 3.50%. As a group, equities research analysts anticipate that Methode Electronics, Inc. will post -0.95 EPS for the current year.

Methode Electronics Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, July 31st. Stockholders 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 dividend payout ratio (DPR) is -19.80%.

Hedge Funds Weigh In On Methode Electronics

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Sei Investments Co. raised its holdings in Methode Electronics by 87.7% during the 1st quarter. Sei Investments Co. now owns 465,973 shares of the electronics maker’s stock worth $2,572,000 after purchasing an additional 217,764 shares during the last quarter. Empowered Funds LLC boosted its stake in shares of Methode Electronics by 51.2% in the 1st quarter. Empowered Funds LLC now owns 632,346 shares of the electronics maker’s stock valued at $3,491,000 after purchasing an additional 214,224 shares during the last quarter. BlackRock Inc. bought a new stake in shares of Methode Electronics in the 2nd quarter valued at $65,727,000. Deutsche Bank AG acquired a new stake in shares of Methode Electronics during the second quarter worth $4,982,000. Finally, Ieq Capital LLC acquired a new stake in shares of Methode Electronics during the second quarter worth $2,330,000. 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.