Stock Analysis

This Insider Has Just Sold Shares In Methode Electronics, Inc. (NYSE:MEI)

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NYSE:MEI
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Anyone interested in Methode Electronics, Inc. (NYSE:MEI) should probably be aware that the Chief Operating Officer, Joseph Khoury, recently divested US$462k worth of shares in the company, at an average price of US$38.50 each. However, the silver lining is that the sale only reduced their total holding by 4.8%, so we're hesitant to read anything much into it, on its own.

Before we look at these insider transactions though, you might like to know that our analysis indicates that MEI is potentially undervalued!

The Last 12 Months Of Insider Transactions At Methode Electronics

Notably, that recent sale by Chief Operating Officer Joseph Khoury was not the only time they sold Methode Electronics shares this year. They previously made an even bigger sale of -US$909k worth of shares at a price of US$45.45 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$36.75). So it is hard to draw any strong conclusion from it.

Insiders in Methode Electronics didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NYSE:MEI Insider Trading Volume September 24th 2022

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 2.8% of Methode Electronics shares, worth about US$37m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Methode Electronics Insider Transactions Indicate?

An insider hasn't bought Methode Electronics stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for Methode Electronics that deserve your attention before buying any shares.

Of course Methode Electronics may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

Valuation is complex, but we're helping make it simple.

Find out whether Methode Electronics is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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About NYSE:MEI

Methode Electronics

Methode Electronics, Inc. designs, engineers, and produces mechatronic products worldwide.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Valuation1
Future Growth1
Past Performance2
Financial Health5
Dividends4

Read more about these checks in the individual report sections or in our analysis model.

Excellent balance sheet average dividend payer.

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