Mayville Engineering Company, Inc. (NYSE:MEC) Receives Consensus Rating of "Moderate Buy" from Analysts

Key Points

• Mayville Engineering has a “Moderate Buy” consensus from six analysts, with an average 12-month price target of $29.75. Recent reports were mixed, including upgrades from DA Davidson and Citigroup and downgrades from Weiss Ratings.
• The company reported better-than-expected quarterly results, posting EPS of -$0.15 versus estimates of -$0.28 and revenue of $144.78 million versus expected $139.18 million.
• Shares recently traded near their 12-month high, opening at $32.31 with a high of $32.50, while insiders have been selling stock and institutional investors continue to hold a large portion of the company.

Mayville Engineering Company, Inc. (NYSE:MEC - Get Free Report) has received an average recommendation of "Moderate Buy" from the six brokerages that are currently covering the firm, Marketbeat Ratings reports. One investment analyst has rated the stock with a sell recommendation, one has assigned a hold recommendation and four have given a buy recommendation to the company. The average 1-year price target among brokerages that have issued a report on the stock in the last year is $29.75.

MEC has been the topic of several recent research reports. Zacks Research upgraded Mayville Engineering from a "strong sell" rating to a "hold" rating in a research report on Friday, March 6th. DA Davidson upped their price objective on Mayville Engineering from $23.00 to $32.00 and gave the stock a "buy" rating in a research report on Monday, May 11th. Weiss Ratings lowered Mayville Engineering from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Thursday, March 5th. Northland Securities set a $30.00 price objective on Mayville Engineering in a research report on Thursday, May 7th. Finally, Citigroup upped their price objective on Mayville Engineering from $25.00 to $33.00 and gave the stock a "buy" rating in a research report on Friday, May 8th.

Mayville Engineering Price Performance

Shares of NYSE:MEC opened at $32.31 on Wednesday. Mayville Engineering has a twelve month low of $12.10 and a twelve month high of $32.50. The company's 50 day moving average is $22.06 and its 200 day moving average is $19.86. The company has a current ratio of 1.64, a quick ratio of 0.91 and a debt-to-equity ratio of 0.91. The company has a market cap of $662.09 million, a PE ratio of -40.39 and a beta of 1.29.

Mayville Engineering (NYSE:MEC - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The company reported ($0.15) EPS for the quarter, topping the consensus estimate of ($0.28) by $0.13. Mayville Engineering had a negative return on equity of 5.77% and a negative net margin of 2.93%.The business had revenue of $144.78 million for the quarter, compared to analyst estimates of $139.18 million. On average, sell-side analysts forecast that Mayville Engineering will post -0.23 EPS for the current year.

Insiders Place Their Bets

In other news, CEO Jagadeesh A. Reddy sold 21,796 shares of the stock in a transaction that occurred on Thursday, May 7th. The stock was sold at an average price of $25.93, for a total transaction of $565,170.28. Following the transaction, the chief executive officer owned 158,387 shares in the company, valued at $4,106,974.91. This trade represents a 12.10% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP Ryan F. Raber sold 20,000 shares of the stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $26.00, for a total value of $520,000.00. Following the transaction, the executive vice president owned 86,970 shares in the company, valued at $2,261,220. This trade represents a 18.70% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 72,936 shares of company stock worth $1,892,555. Corporate insiders own 5.60% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in MEC. Empowered Funds LLC lifted its position in shares of Mayville Engineering by 7.3% during the 1st quarter. Empowered Funds LLC now owns 98,207 shares of the company's stock valued at $1,319,000 after buying an additional 6,694 shares in the last quarter. Jane Street Group LLC lifted its position in shares of Mayville Engineering by 158.6% during the 1st quarter. Jane Street Group LLC now owns 47,194 shares of the company's stock valued at $634,000 after buying an additional 28,946 shares in the last quarter. Geode Capital Management LLC lifted its position in shares of Mayville Engineering by 9.5% during the 2nd quarter. Geode Capital Management LLC now owns 318,321 shares of the company's stock valued at $5,081,000 after buying an additional 27,552 shares in the last quarter. JPMorgan Chase & Co. lifted its holdings in Mayville Engineering by 20.7% in the 2nd 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 in the last quarter. Finally, Rhumbline Advisers lifted its holdings in Mayville Engineering by 8.3% in the 2nd quarter. Rhumbline Advisers now owns 19,969 shares of the company's stock valued at $319,000 after purchasing an additional 1,526 shares in the last quarter. Hedge funds and other institutional investors own 45.44% of the company's stock.

About Mayville Engineering

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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