Methode Stock Story

MEI

Stock

USD 36.92 0.85 2.25%

Macroaxis Story

Methode Electronics is scheduled to announce its earnings today. While some stockholders are becoming indifferent towards technology space, we are going to concentrate on the feasibility of locking in Methode as a potential hedging instrument for your current portfolios. Should we be more optimistic in anticipation of a recovery?

Published few days ago

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Methode Electronics Current Investor Sentiment

Investor biases related to Methode Electronics' public news can be used to forecast risks associated with investment in Methode. The trend in average sentiment can be used to explain how an investor holding Methode can time the market purely based on public headlines and social activities around Methode Electronics. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.

Methode Electronics' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Methode Electronics' and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Methode Electronics' news discussions. The higher the estimate score, the more favorable is the investor's outlook on Methode Electronics.

What is July outlook for Methode Electronics (NYSE:MEI)?

The company secures a Beta (Market Risk) of 1.0027, which conveys a somewhat significant risk relative to the market. Let's try to break down what Methode's beta means in this case. Methode Electronics returns are very sensitive to returns on the market. As the market goes up or down, Methode Electronics is expected to follow. Even though it is essential to pay attention to Methode Electronics price patterns, it is always good to be careful when utilizing equity historical price patterns. Our philosophy towards estimating any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Methode Electronics exposes twenty-eight different technical indicators, which can help you to evaluate its performance. Methode Electronics has an expected return of -0.14%. Please be advised to verify Methode Electronics expected short fall, and the relationship between the value at risk and daily balance of power to decide if Methode Electronics performance from the past will be repeated at some point in the near future.

What is the right price you would pay to acquire a share of Methode Electronics? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated.

Please read more on our stock advisor page.

What is happening with Methode Electronics this year

Annual and quarterly reports issued by Methode Electronics are formal financial statements that are published yearly and quarterly and sent to Methode stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.

Companies such as Methode Electronics often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

How does Methode utilize its cash?

To perform a cash flow analysis of Methode Electronics, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Methode Electronics is receiving and how much cash it distributes out in a given period. The Methode Electronics cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Methode Electronics Net Cash Flow from Operations is most likely to decrease significantly in the upcoming years. The last year's value of Net Cash Flow from Operations was reported at 98.8 Million

Methode Electronics exotic insider transaction detected

Legal trades by Methode Electronics insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:

Methode insider trading alert for general transaction of common stock by Therese Bobek, the corporate stakeholder, on 3rd of May 2022. This event was filed by Methode Electronics Inc with SEC on 2022-05-03. Statement of changes in beneficial ownership - SEC Form 4 [view details]

Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Is Methode a risky opportunity?

Let's check the volatility. Methode is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Methode (NYSE:MEI) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. locking in a share of a Methode Electronics stock makes you a part-owner of that company.

Methode Electronics has 99 percent likelihood to hit $39 in July

Coefficient Of Variation just dropped to -1384.08, may hint to upcoming price depreciation. Methode Electronics exhibits very low volatility with skewness of -0.63 and kurtosis of 1.78. However, we advise investors to further study Methode Electronics technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Methode Electronics' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Methode Electronics' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Methode Electronics Implied Volatility

Methode Electronics' implied volatility exposes the market's sentiment of Methode Electronics stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Methode Electronics' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Methode Electronics stock will not fluctuate a lot when Methode Electronics' options are near their expiration.

Our Final Takeaway

While some companies in the electronic components industry are either recovering or due for a correction, Methode Electronics may not be performing as strong as the other in terms of long-term growth potentials. While some stockholders may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Methode Electronics.

Editorial Staff

Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Methode Electronics. Please refer to our Terms of Use for any information regarding our disclosure principles.

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