Mayville Engineering (NYSE:MEC) Stock Price Down 4.9% - Should You Sell?

Key Points

• Mayville Engineering shares fell 4.9% on Monday, trading as low as $28.33 and ending around $29.41 on volume well below average.
• Analyst sentiment remains mixed but generally positive: the stock has a Moderate Buy rating with an average price target of $32.25, though Weiss Ratings reiterated a sell rating.
• The company recently beat earnings expectations, reporting a smaller-than-expected loss and higher-than-expected revenue, but insider selling has been notable, with executives selling shares in recent months.

Mayville Engineering Company, Inc. (NYSE:MEC - Get Free Report) shares traded down 4.9% during trading on Monday . The company traded as low as $28.33 and last traded at $29.4080. Approximately 101,504 shares were traded during mid-day trading, a decline of 68% from the average daily volume of 321,312 shares. The stock had previously closed at $30.92.

Wall Street Analyst Weigh In

Several brokerages have issued reports on MEC. Weiss Ratings restated a "sell (d+)" rating on shares of Mayville Engineering in a report on Friday, July 10th. Citigroup upped their price target on shares of Mayville Engineering from $33.00 to $43.00 and gave the company a "buy" rating in a report on Monday, July 13th. DA Davidson raised their price objective on shares of Mayville Engineering from $23.00 to $32.00 and gave the stock a "buy" rating in a report on Monday, May 11th. Finally, Northland Securities set a $30.00 target price on shares of Mayville Engineering in a research note on Thursday, May 7th. Four investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $32.25.

Mayville Engineering Stock Down 6.9%

The firm's 50 day simple moving average is $31.53 and its 200-day simple moving average is $23.92. 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 stock has a market capitalization of $589.91 million, a price-to-earnings ratio of -35.99 and a beta of 1.22.

Mayville Engineering (NYSE:MEC - Get Free Report) last announced its quarterly earnings data on Tuesday, May 5th. The company reported ($0.15) earnings per share for the quarter, beating 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 company had revenue of $144.78 million during the quarter, compared to analysts' expectations of $139.18 million. Equities analysts expect that Mayville Engineering Company, Inc. will post -0.08 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, SVP Craig D. Nichols sold 4,000 shares of the business's stock in a transaction on Thursday, May 21st. The shares were 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. The trade was a 96.48% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Jagadeesh A. Reddy sold 21,796 shares of the company's stock in a transaction 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 sale, the chief executive officer directly owned 158,387 shares in the company, valued at $4,106,974.91. This trade represents a 12.10% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 80,726 shares of company stock valued at $2,311,768 in the last 90 days. 5.60% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Mayville Engineering

Institutional investors and hedge funds have recently modified their holdings of the company. Royce & Associates LP increased its holdings in shares of Mayville Engineering by 10.2% in the fourth quarter. Royce & Associates LP now owns 624,307 shares of the company's stock valued at $11,687,000 after purchasing an additional 57,590 shares during the last quarter. UBS Group AG lifted its stake in shares of Mayville Engineering by 38.6% during the 4th quarter. UBS Group AG now owns 146,552 shares of the company's stock worth $2,743,000 after buying an additional 40,798 shares during the last quarter. Congruence Capital LLC bought a new stake in shares of Mayville Engineering during the 4th quarter worth about $3,896,000. North Star Investment Management Corp. acquired a new position in Mayville Engineering in the 1st quarter valued at about $538,000. Finally, EVR Research LP acquired a new stake in Mayville Engineering during the fourth quarter worth approximately $11,326,000. 45.44% of the stock is owned by institutional investors.

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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