Mayville Engineering (NYSE:MEC) Posts Quarterly Earnings Results, Misses Expectations By $0.12 EPS

Key Points

• Earnings miss: Mayville Engineering reported a quarterly loss of ($0.40) EPS, missing the consensus by $0.12 and showing a negative net margin (1.48%) and negative return on equity (2.33%).
• Shares rose to $22.78 on heavy volume (363,846 vs. average 120,870) after the report; the stock has a market cap of $462.8M, a 1‑year range of $12.10–$23.63, and 50/200‑day moving averages of $19.57/$18.57.
• Insider Sean P. Leuba sold 6,698 shares (a 36.1% reduction in his holding) while institutional ownership is 45.44%; analysts' consensus is a "Moderate Buy" with an average price target of $24.25 following several recent upgrades.

Mayville Engineering (NYSE:MEC - Get Free Report) issued its earnings results on Tuesday. The company reported ($0.40) earnings per share for the quarter, missing the consensus estimate of ($0.28) by ($0.12), Zacks reports. Mayville Engineering had a negative net margin of 1.48% and a negative return on equity of 2.33%.

Mayville Engineering Price Performance

MEC traded up $0.63 during midday trading on Tuesday, reaching $22.78. 363,846 shares of the company's stock were exchanged, compared to its average volume of 120,870. The company has a debt-to-equity ratio of 0.84, a current ratio of 1.72 and a quick ratio of 0.92. The stock has a market capitalization of $462.83 million, a PE ratio of -56.94 and a beta of 1.24. The business's 50-day moving average price is $19.57 and its 200 day moving average price is $18.57. Mayville Engineering has a 1-year low of $12.10 and a 1-year high of $23.63.

Insider Transactions at Mayville Engineering

In other Mayville Engineering news, insider Sean P. Leuba sold 6,698 shares of Mayville Engineering stock in a transaction dated Thursday, March 5th. The shares were sold at an average price of $18.81, for a total transaction of $125,989.38. Following the completion of the transaction, the insider owned 11,841 shares in the company, valued at approximately $222,729.21. The trade was a 36.13% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 5.60% of the company's stock.

Hedge Funds Weigh In On Mayville Engineering

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in MEC. Ameriprise Financial Inc. raised its position in Mayville Engineering by 894.2% during the third quarter. Ameriprise Financial Inc. now owns 394,161 shares of the company's stock worth $5,424,000 after acquiring an additional 354,514 shares during the last quarter. Blair William & Co. IL raised its position in Mayville Engineering by 54.8% during the fourth quarter. Blair William & Co. IL now owns 583,759 shares of the company's stock worth $10,928,000 after acquiring an additional 206,549 shares during the last quarter. Boston Partners acquired a new position in Mayville Engineering during the third quarter worth about $2,727,000. Millennium Management LLC acquired a new position in Mayville Engineering during the fourth quarter worth about $2,868,000. Finally, Kennedy Capital Management LLC acquired a new position in Mayville Engineering during the fourth quarter worth about $1,953,000. Institutional investors and hedge funds own 45.44% of the company's stock.

Analysts Set New Price Targets

A number of analysts recently commented on MEC shares. Northland Securities raised shares of Mayville Engineering from a "market perform" rating to an "outperform" rating and boosted their price objective for the stock from $20.00 to $25.00 in a report on Thursday, March 5th. DA Davidson boosted their price objective on shares of Mayville Engineering from $21.00 to $23.00 and gave the stock a "buy" rating in a report on Monday, March 9th. Zacks Research raised shares of Mayville Engineering from a "strong sell" rating to a "hold" rating in a report on Friday, March 6th. Citigroup boosted their price objective on shares of Mayville Engineering from $24.00 to $25.00 and gave the stock a "buy" rating in a report on Thursday, March 5th. Finally, Weiss Ratings downgraded shares of Mayville Engineering from a "hold (c-)" rating to a "sell (d+)" rating in a report on Thursday, March 5th. Four equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Mayville Engineering presently has a consensus rating of "Moderate Buy" and an average price target of $24.25.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.