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CHICAGO— Methode Electronics Inc . (NYSE:MEI) CEO and President Jonathan B. DeGaynor has acquired 32,733 shares of the company’s common stock in a recent transaction. The shares were purchased at an average price of $6.457 each, totaling approximately $211,356. This transaction was executed on March 11, 2025, as disclosed in a recent SEC filing. The purchase comes as the stock trades near its 52-week low of $5.84, having declined 45% year-to-date. According to InvestingPro analysis, the stock appears undervalued at current levels.
Following this acquisition, DeGaynor holds a total of 129,136 shares of Methode Electronics, with 32,733 shares held in a joint account with his spouse. The purchase was executed in multiple trades at prices ranging from $6.40 to $6.50 per share. The transaction underscores DeGaynor’s confidence in the company’s future prospects, which currently offers an 8.74% dividend yield and trades at just 0.32 times book value. InvestingPro subscribers have access to 15 additional investment tips and comprehensive analysis for MEI, including detailed valuation metrics and financial health scores.
In other recent news, Methode Electronics reported its third-quarter earnings for fiscal year 2025, missing analyst forecasts for both earnings per share (EPS) and revenue. The company posted an EPS of -$0.21, falling short of the anticipated -$0.12, while revenue came in at $239.9 million, below the expected $259.27 million. Methode Electronics attributed the revenue decline to challenges in the automotive sector, including program roll-offs and softening demand for electric vehicles. Despite these setbacks, the company managed to improve its gross profit and reported a positive free cash flow of $19.6 million, an increase of $7.4 million from the previous year. Methode Electronics also reduced its accounts receivable and inventory, indicating effective financial management. Looking ahead, the company anticipates profitable organic sales growth in fiscal 2026, excluding its appliance business, and plans to launch more electric vehicle programs. Analyst feedback from Sidoti and Baird during the earnings call highlighted concerns over program delays, particularly with Stellantis (NYSE:STLA), but Methode Electronics remains optimistic about its long-term prospects.
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