Mayville Engineering Company, Inc. (NYSE:MEC) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Analysts maintain a “Moderate Buy” consensus on Mayville Engineering, with four buy ratings, one hold and one sell among six firms. The average 12-month price target is $35.75, well above the stock’s $18.88 opening price.
• MEC’s latest quarterly results exceeded expectations, reporting $0.07 in earnings per share versus the consensus estimate of a $0.05 loss, while revenue of $162.98 million topped estimates of $150.59 million.
• The stock has declined 4.0% and remains financially challenged, with a negative net margin and analysts expecting a full-year loss of $0.22 per share. An executive also sold 12,855 shares for approximately $327,000, reducing their direct ownership by nearly 66%.

Shares of Mayville Engineering Company, Inc. (NYSE:MEC - Get Free Report) have been given an average recommendation of "Moderate Buy" by the six ratings firms that are covering the company, MarketBeat reports. One investment analyst has rated the stock with a sell rating, one has assigned a hold rating and four have given a buy rating to the company. The average 12-month price target among brokerages that have updated their coverage on the stock in the last year is $35.75.

A number of research analysts recently commented on MEC shares. Weiss Ratings reiterated a "sell (d+)" rating on shares of Mayville Engineering in a research note on Friday, July 10th. Northland Securities set a $40.00 price target on shares of Mayville Engineering in a report on Thursday, August 6th. DA Davidson lifted their price objective on shares of Mayville Engineering from $32.00 to $36.00 and gave the stock a "buy" rating in a research note on Wednesday, July 22nd. Finally, Citigroup increased their target price on shares of Mayville Engineering from $33.00 to $43.00 and gave the company a "buy" rating in a research note on Monday, July 13th.

Mayville Engineering Stock Down 4.0%

Shares of MEC opened at $18.88 on Friday. Mayville Engineering has a 52 week low of $12.25 and a 52 week high of $38.76. The company has a quick ratio of 0.96, a current ratio of 1.70 and a debt-to-equity ratio of 0.39. The company has a market capitalization of $481.31 million, a price-to-earnings ratio of -22.47 and a beta of 1.26. The stock's 50-day moving average price is $25.71 and its 200-day moving average price is $25.01.

Mayville Engineering (NYSE:MEC - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The company reported $0.07 EPS for the quarter, topping analysts' consensus estimates of ($0.05) by $0.12. The company had revenue of $162.98 million during the quarter, compared to the consensus estimate of $150.59 million. Mayville Engineering had a negative net margin of 2.95% and a negative return on equity of 6.63%. On average, sell-side analysts predict that Mayville Engineering will post -0.22 EPS for the current year.

Insiders Place Their Bets

In other news, SVP Sean Leuba sold 12,855 shares of the stock in a transaction that occurred on Thursday, August 6th. The shares were sold at an average price of $25.44, for a total value of $327,031.20. Following the completion of the sale, the senior vice president directly owned 6,633 shares of the company's stock, valued at $168,743.52. This represents a 65.96% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 5.60% of the company's stock.

Institutional Investors Weigh In On Mayville Engineering

A number of large investors have recently bought and sold shares of the business. BNP Paribas Financial Markets lifted its holdings in Mayville Engineering by 109.0% in the 3rd quarter. BNP Paribas Financial Markets now owns 2,751 shares of the company's stock worth $38,000 after purchasing an additional 1,435 shares during the last quarter. Clearstead Advisors LLC grew its holdings in Mayville Engineering by 194.9% during the fourth quarter. Clearstead Advisors LLC now owns 2,094 shares of the company's stock valued at $39,000 after purchasing an additional 1,384 shares during the last quarter. Legal & General Group Plc bought a new position in shares of Mayville Engineering in the second quarter valued at approximately $53,000. Parkside Financial Bank & Trust raised its position in shares of Mayville Engineering by 4,657.1% in the second quarter. Parkside Financial Bank & Trust now owns 1,665 shares of the company's stock valued at $62,000 after purchasing an additional 1,630 shares during the period. Finally, Persistent Asset Partners Ltd acquired a new stake in shares of Mayville Engineering in the second quarter worth $80,000. 45.44% of the stock is currently owned by institutional investors.

Mayville Engineering Company Profile

Mayville Engineering Company, Inc NYSE: MEC is a U.S.-based industrial manufacturer specializing in engineered metal castings and precision machining services. Headquartered in Mayville, Wisconsin, the company leverages over a century of casting experience to design, produce and finish complex metal components for a broad range of heavy-duty applications.

The company operates two principal business segments: iron castings and steel castings. Its iron segment utilizes green sand and lost-foam molding processes to produce gray and ductile iron components, while the steel segment employs electric-arc furnace technology to manufacture high-strength steel castings.

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