Mayville Engineering Company, Inc. (NYSE:MEC) Given Consensus Recommendation of "Moderate Buy" by Brokerages

Key Points

• Brokerages have a consensus rating of "Moderate Buy" on Mayville Engineering (six analysts: four buys, one hold, one sell) with an average 12‑month price target of $24.25.
• The company beat the latest quarter's estimates—EPS of ($0.08) vs. ($0.16) expected and revenue of $134.27M vs. $132.51M—and analysts forecast EPS of 0.31 for the fiscal year.
• Shares opened at $17.27 (market cap ≈ $350.8M), trading well below the consensus target but with negative trailing metrics (P/E -43.16, negative ROE and net margin); insiders own 5.6% and recently disclosed a small insider sale.

Mayville Engineering Company, Inc. (NYSE:MEC - Get Free Report) has been assigned an average rating of "Moderate Buy" from the six analysts that are currently covering the firm, Marketbeat reports. One analyst has rated the stock with a sell rating, one has issued a hold rating and four have issued a buy rating on the company. The average twelve-month price target among brokerages that have issued ratings on the stock in the last year is $24.25.

Several research analysts recently weighed in on MEC shares. Zacks Research raised Mayville Engineering from a "strong sell" rating to a "hold" rating in a research note on Friday, March 6th. Citigroup boosted their price target on shares of Mayville Engineering from $24.00 to $25.00 and gave the stock a "buy" rating in a research report on Thursday, March 5th. Northland Securities raised shares of Mayville Engineering from a "market perform" rating to an "outperform" rating and upped their price target for the company from $20.00 to $25.00 in a report on Thursday, March 5th. Weiss Ratings lowered shares of Mayville Engineering from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Thursday, March 5th. Finally, DA Davidson lifted their price objective on shares of Mayville Engineering from $21.00 to $23.00 and gave the stock a "buy" rating in a research note on Monday, March 9th.

Mayville Engineering Price Performance

Shares of NYSE:MEC opened at $17.27 on Friday. The stock has a market cap of $350.82 million, a price-to-earnings ratio of -43.16 and a beta of 1.08. The company has a debt-to-equity ratio of 0.84, a current ratio of 1.72 and a quick ratio of 0.92. Mayville Engineering has a 12 month low of $11.72 and a 12 month high of $22.36. The stock's 50 day moving average price is $19.66 and its 200 day moving average price is $17.26.

Mayville Engineering (NYSE:MEC - Get Free Report) last issued its quarterly earnings results on Tuesday, March 3rd. The company reported ($0.08) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.16) by $0.08. Mayville Engineering had a negative return on equity of 2.33% and a negative net margin of 1.48%.The firm had revenue of $134.27 million during the quarter, compared to analyst estimates of $132.51 million. Equities research analysts anticipate that Mayville Engineering will post 0.31 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, insider Sean P. Leuba sold 2,500 shares of the firm's stock in a transaction that occurred on Thursday, March 5th. The shares were sold at an average price of $20.07, for a total transaction of $50,175.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 5.60% of the company's stock.

Institutional Investors Weigh In On Mayville Engineering

A number of institutional investors and hedge funds have recently modified their holdings of MEC. Raymond James Financial Inc. boosted its stake in shares of Mayville Engineering by 3.0% during the 3rd quarter. Raymond James Financial Inc. now owns 25,187 shares of the company's stock worth $347,000 after acquiring an additional 740 shares in the last quarter. Wealth Enhancement Advisory Services LLC raised its position in shares of Mayville Engineering by 6.2% during the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 13,792 shares of the company's stock worth $245,000 after purchasing an additional 800 shares during the period. JPMorgan Chase & Co. lifted its holdings in shares of Mayville Engineering by 20.7% during the second quarter. JPMorgan Chase & Co. now owns 7,936 shares of the company's stock valued at $127,000 after purchasing an additional 1,359 shares during the last quarter. Clearstead Advisors LLC lifted its holdings in shares of 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. Finally, BNP Paribas Financial Markets boosted its position in shares of Mayville Engineering by 109.0% in the 3rd quarter. BNP Paribas Financial Markets now owns 2,751 shares of the company's stock valued at $38,000 after purchasing an additional 1,435 shares during the period. Institutional investors and hedge funds own 45.44% of the company's stock.

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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