Mayville Engineering (NYSE:MEC) Releases Quarterly Earnings Results

Key Points

• Mayville Engineering beat quarterly expectations: The company reported EPS of $0.07 versus analysts’ consensus estimate of a $0.05 loss, while revenue reached $162.98 million compared with expectations of $150.59 million. Despite the beat, it posted a negative net margin of 2.93% and negative return on equity of 5.77%.
• Shares rose during Tuesday trading to $27.79, giving the company a market capitalization of approximately $569.4 million. The stock remains well below its 52-week high of $38.76 but above its low of $12.10.
• Analyst sentiment is broadly positive, with four Buy, one Hold and one Sell rating and a consensus “Moderate Buy” view. The average analyst price target is $33.25, while insiders have sold about $2.31 million worth of shares over the past 90 days.

Mayville Engineering (NYSE:MEC - Get Free Report) released its earnings results on Tuesday. The company reported $0.07 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.05) by $0.12, FiscalAI reports. Mayville Engineering had a negative return on equity of 5.77% and a negative net margin of 2.93%.The business had revenue of $162.98 million for the quarter, compared to analyst estimates of $150.59 million.

Mayville Engineering Price Performance

NYSE:MEC traded up $1.24 during trading hours on Tuesday, hitting $27.79. The company's stock had a trading volume of 835,299 shares, compared to its average volume of 348,671. The business's 50-day moving average is $32.20 and its two-hundred day moving average is $24.66. The company has a market capitalization of $569.42 million, a PE ratio of -34.74 and a beta of 1.27. The company has a debt-to-equity ratio of 0.91, a quick ratio of 0.91 and a current ratio of 1.64. Mayville Engineering has a 52-week low of $12.10 and a 52-week high of $38.76.

Insiders Place Their Bets

In other Mayville Engineering news, CEO Jagadeesh A. Reddy sold 15,688 shares of the business's stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $35.05, for a total transaction of $549,864.40. Following the sale, the chief executive officer directly owned 124,105 shares in the company, valued at approximately $4,349,880.25. The trade was a 11.22% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP Craig D. Nichols sold 4,000 shares of the company's stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $23.24, for a total transaction of $92,960.00. Following the transaction, the senior vice president directly owned 146 shares in the company, valued at approximately $3,393.04. This trade represents a 96.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 80,726 shares of company stock worth $2,311,768. Corporate insiders own 5.60% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. BNP Paribas Financial Markets increased its stake in 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 in the last quarter. Picton Mahoney Asset Management acquired a new stake in Mayville Engineering in the fourth quarter valued at $109,000. JPMorgan Chase & Co. grew its holdings in Mayville Engineering by 20.7% in 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. Deutsche Bank AG acquired a new stake in Mayville Engineering in the fourth quarter valued at $154,000. Finally, Boothbay Fund Management LLC purchased a new position in shares of Mayville Engineering in the fourth quarter valued at $228,000. 45.44% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of brokerages have commented on MEC. Weiss Ratings restated a "sell (d+)" rating on shares of Mayville Engineering in a research report on Friday, July 10th. Northland Securities set a $30.00 target price on shares of Mayville Engineering in a report on Thursday, May 7th. Citigroup boosted their price target on shares of Mayville Engineering from $33.00 to $43.00 and gave the stock a "buy" rating in a research note on Monday, July 13th. Finally, DA Davidson increased their price target on shares of Mayville Engineering from $32.00 to $36.00 and gave the stock a "buy" rating in a report on Wednesday, July 22nd. Four equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Mayville Engineering currently has a consensus rating of "Moderate Buy" and an average price target of $33.25.

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.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source