Mayville Engineering (NYSE:MEC) Shares Up 7.5% - What's Next?

Key Points

• Mayville Engineering shares jumped 7.5% during Tuesday trading, reaching as high as $35.29 before settling near $35.28. Trading volume was below average, with 129,435 shares changing hands versus a typical 312,989.
• Analysts remain mixed but generally constructive: several firms raised price targets, including Citigroup to $43 and DA Davidson to $32, while the consensus rating is still Moderate Buy with an average target of $32.25.
• The company recently beat earnings expectations, reporting EPS of -$0.15 versus an expected -$0.28 and revenue of $144.78 million above estimates. However, insiders have been selling shares, including the CEO and EVP, even as institutional investors continue to add positions.

Mayville Engineering Company, Inc. (NYSE:MEC - Get Free Report)'s share price traded up 7.5% during mid-day trading on Tuesday . The stock traded as high as $35.29 and last traded at $35.28. 129,435 shares changed hands during mid-day trading, a decline of 59% from the average daily volume of 312,989 shares. The stock had previously closed at $32.83.

Analyst Ratings Changes

Several equities analysts recently weighed in on the stock. DA Davidson lifted their target price on shares of Mayville Engineering from $23.00 to $32.00 and gave the company a "buy" rating in a report on Monday, May 11th. Citigroup raised their price objective on Mayville Engineering from $33.00 to $43.00 and gave the company a "buy" rating in a research report on Monday. Northland Securities set a $30.00 price objective on Mayville Engineering in a research note on Thursday, May 7th. Finally, Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Mayville Engineering in a research report on Friday. Four research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Mayville Engineering has a consensus rating of "Moderate Buy" and an average price target of $32.25.

Mayville Engineering Trading Up 5.4%

The business's 50-day moving average price is $30.87 and its 200 day moving average price is $23.53. The company has a debt-to-equity ratio of 0.91, a current ratio of 1.64 and a quick ratio of 0.91. The firm has a market capitalization of $709.14 million, a price-to-earnings ratio of -43.33 and a beta of 1.22.

Mayville Engineering (NYSE:MEC - Get Free Report) last released its quarterly earnings results on Tuesday, May 5th. The company reported ($0.15) earnings per share for the quarter, beating analysts' consensus estimates of ($0.28) by $0.13. Mayville Engineering had a negative net margin of 2.93% and a negative return on equity of 5.77%. The business had revenue of $144.78 million during the quarter, compared to analyst estimates of $139.18 million. On average, equities analysts forecast that Mayville Engineering Company, Inc. will post -0.08 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, EVP Ryan F. Raber sold 20,000 shares of the stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $26.00, for a total value of $520,000.00. Following the completion of the transaction, the executive vice president owned 86,970 shares of the company's stock, valued at approximately $2,261,220. This represents a 18.70% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, CEO Jagadeesh A. Reddy sold 21,796 shares of the stock in a transaction dated Thursday, May 7th. The shares were sold at an average price of $25.93, for a total value of $565,170.28. Following the completion of the transaction, the chief executive officer directly owned 158,387 shares of the company's stock, valued at $4,106,974.91. This represents a 12.10% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 80,726 shares of company stock worth $2,311,768. 5.60% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Mayville Engineering

Several institutional investors and hedge funds have recently made changes to their positions in the business. Clearstead Advisors LLC raised its holdings in Mayville Engineering by 194.9% in the fourth quarter. Clearstead Advisors LLC now owns 2,094 shares of the company's stock valued at $39,000 after acquiring an additional 1,384 shares in the last quarter. BNP Paribas Financial Markets grew its holdings in Mayville Engineering by 109.0% during the 3rd quarter. BNP Paribas Financial Markets now owns 2,751 shares of the company's stock worth $38,000 after acquiring an additional 1,435 shares in the last quarter. State of Alaska Department of Revenue bought a new stake in shares of Mayville Engineering in the 4th quarter worth about $73,000. Picton Mahoney Asset Management bought a new stake in shares of Mayville Engineering in the 4th quarter worth about $109,000. Finally, JPMorgan Chase & Co. raised its stake in shares of 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. 45.44% of the stock is currently owned by hedge funds and other institutional investors.

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.

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.