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

Methode Electronics, Inc. (NYSE:MEIGet Free Report) shares 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 traded.

Key Stories Impacting Methode Electronics

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

  • Positive Sentiment: Revenue and earnings exceeded expectations. Methode reported fiscal Q1 2027 revenue of approximately $265.4 million, up about 10% year over year and ahead of consensus estimates. Its $0.22-per-share loss was also narrower than analysts expected, helping support the stock. Methode Reports Q1 Loss, Beats Revenue Estimates
  • Positive Sentiment: Fiscal 2027 outlook was confirmed. Management maintained revenue guidance of $1.0 billion to $1.1 billion, broadly consistent with analyst expectations. The company also highlighted commercial momentum, progress in its operational transformation and efforts to improve future profitability. Methode Confirms Fiscal 2027 Forecast
  • Positive Sentiment: Analyst sentiment is supportive. A recent report identified Methode among technology stocks viewed favorably by analysts, adding to optimism that the company’s restructuring and growth initiatives could drive a recovery. Analysts Are Bullish on Methode Electronics
  • Neutral Sentiment: The earnings call emphasized growth opportunities and transformation progress, but investors are still waiting for those initiatives to translate into sustained earnings and stronger margins. Methode Q1 2027 Earnings Call Transcript
  • Negative Sentiment: Profitability remains a concern. Methode continues to report a quarterly loss, and the stock previously declined despite sales growth as investors focused on earnings quality and the path to profitability. Methode Falls Despite Sales Growth

Analysts Set New Price Targets

MEI has been the topic of several research reports. Wall Street Zen cut shares of Methode Electronics from a “buy” rating to a “hold” rating in a research report on Sunday, August 2nd. Zacks Research raised shares of Methode Electronics from a “strong sell” rating to a “hold” rating in a research note on Tuesday, August 4th. Sidoti reiterated a “neutral” rating and issued a $17.00 target price on shares of Methode Electronics in a report on Friday, June 26th. Craig Hallum began coverage on shares of Methode Electronics in a research note on Tuesday, August 25th. They set a “buy” rating and a $30.00 target price for the company. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Methode Electronics in a report on Friday, July 17th. Two research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Methode Electronics presently has a consensus rating of “Hold” and a consensus target price of $22.00.

View Our Latest Stock Analysis on MEI

Methode Electronics Stock Performance

The company has a debt-to-equity ratio of 0.47, a current ratio of 2.41 and a quick ratio of 1.66. The firm has a market capitalization of $559.72 million, a PE ratio of -15.17 and a beta of 1.54. The firm has a fifty day moving average price of $16.08 and a 200 day moving average price of $11.48.

Methode Electronics (NYSE:MEIGet Free Report) last issued its quarterly earnings results on Wednesday, September 2nd. The electronics maker reported ($0.22) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.27) by $0.05. Methode Electronics had a negative return on equity of 5.63% and a negative net margin of 3.52%.The firm had revenue of $265.40 million for the quarter, compared to analysts’ expectations of $238.31 million. Research analysts anticipate 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. Investors of record on Friday, July 17th were paid 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 yield of 1.3%. Methode Electronics’s dividend payout ratio (DPR) is currently -19.23%.

Institutional Trading of Methode Electronics

Several large investors have recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new stake in shares of Methode Electronics in the second quarter valued at $65,727,000. AIGH Capital Management LLC purchased a new position in shares of Methode Electronics during the second quarter valued at $31,839,000. Empowered Funds LLC acquired a new position in Methode Electronics during the second quarter valued at $11,882,000. 4D Advisors LLC acquired a new position in Methode Electronics during the fourth quarter valued at $3,320,000. Finally, UBS Group AG lifted its stake in Methode Electronics by 887.1% in the 3rd quarter. UBS Group AG now owns 476,974 shares of the electronics maker’s stock worth $3,601,000 after acquiring an additional 428,654 shares in the last quarter. 95.49% of the stock is owned by institutional investors and hedge funds.

Methode Electronics Company Profile

(Get Free Report)

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.

Further Reading

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