Mayville Engineering (NYSE:MEC) Sets New 52-Week High - Still a Buy?

Key Points

• Shares hit a new 52-week high, trading as high as $25.48 and last at $26.22 (up ~9.2%), trading above the average analyst target of $25.50 with a consensus rating of Moderate Buy.
• Mayville beat expectations for the quarter (EPS ($0.15) vs. ($0.28) est.; revenue $144.78M vs. $139.18M) but remains unprofitable with a negative net margin (−2.93%) and ROE (−5.70%); analysts are mixed (four Buys, one Hold, one Sell) with several raised targets.
• Insider Sean P. Leuba sold 6,698 shares in March (a ~36% reduction in his position), while institutional investors have been adding shares and now own about 45.44% of the company.

Shares of Mayville Engineering Company, Inc. (NYSE:MEC - Get Free Report) reached a new 52-week high during mid-day trading on Thursday . The stock traded as high as $25.48 and last traded at $26.22, with a volume of 39623 shares changing hands. The stock had previously closed at $23.35.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on the stock. Weiss Ratings lowered shares of Mayville Engineering from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Thursday, March 5th. Northland Securities set a $30.00 target price on shares of Mayville Engineering in a report on Thursday. Zacks Research upgraded shares of Mayville Engineering from a "strong sell" rating to a "hold" rating in a report on Friday, March 6th. DA Davidson lifted their target price 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. Finally, Citigroup lifted their target price 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. Four investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $25.50.

Mayville Engineering Stock Up 9.2%

The stock has a market cap of $518.26 million, a P/E ratio of -31.98 and a beta of 1.24. The company has a current ratio of 1.72, a quick ratio of 0.92 and a debt-to-equity ratio of 0.84. The firm's fifty day moving average is $19.60 and its 200 day moving average is $18.65.

Mayville Engineering (NYSE:MEC - Get Free Report) last announced its earnings results 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 net margin of 2.93% and a negative return on equity of 5.70%. The firm had revenue of $144.78 million for the quarter, compared to the consensus estimate of $139.18 million. As a group, equities research analysts forecast that Mayville Engineering Company, Inc. will post -0.28 EPS for the current year.

Insider Activity

In other news, insider Sean P. Leuba sold 6,698 shares of the business's 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 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 position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders own 5.60% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. 22NW LP increased its holdings in shares of Mayville Engineering by 157.2% during the 3rd quarter. 22NW LP now owns 399,890 shares of the company's stock worth $5,502,000 after purchasing an additional 244,440 shares during the period. Roubaix Capital LLC increased its holdings in shares of Mayville Engineering by 110.3% during the 3rd quarter. Roubaix Capital LLC now owns 212,688 shares of the company's stock worth $2,927,000 after purchasing an additional 111,550 shares during the period. CenterBook Partners LP increased its holdings in shares of Mayville Engineering by 86.8% during the 3rd quarter. CenterBook Partners LP now owns 177,659 shares of the company's stock worth $2,445,000 after purchasing an additional 82,573 shares during the period. SummerHaven Investment Management LLC bought a new position in shares of Mayville Engineering during the 3rd quarter worth about $712,000. Finally, Blair William & Co. IL increased its holdings in shares of Mayville Engineering by 1.0% during the 3rd quarter. Blair William & Co. IL now owns 377,210 shares of the company's stock worth $5,190,000 after purchasing an additional 3,762 shares during the period. 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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