Mayville Engineering (NYSE:MEC) Trading 4.7% Higher - Should You Buy?

Key Points

• MEC shares rose 4.7% to about $24.50, though trading volume was roughly 99% below the average daily session volume.
• Analyst sentiment is generally positive: the stock has a “Moderate Buy” consensus rating and a $35.75 average price target, with recent targets ranging from $36 to $43.
• Mayville Engineering exceeded quarterly expectations, reporting $0.07 EPS versus an expected loss of $0.05 and revenue of $162.98 million versus estimates of $150.59 million; however, the company remains unprofitable, and insiders have sold approximately $2.07 million worth of shares over the past 90 days.

Mayville Engineering Company, Inc. (NYSE:MEC - Get Free Report)'s share price rose 4.7% during trading on Monday . The stock traded as high as $25.09 and last traded at $24.4980. Approximately 4,229 shares were traded during trading, a decline of 99% from the average session volume of 368,478 shares. The stock had previously closed at $23.40.

Analysts Set New Price Targets

Several brokerages recently weighed in on MEC. DA Davidson lifted their price target on Mayville Engineering from $32.00 to $36.00 and gave the company a "buy" rating in a research report on Wednesday, July 22nd. Citigroup upped their price objective on Mayville Engineering from $33.00 to $43.00 and gave the stock a "buy" rating in a research report on Monday, July 13th. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Mayville Engineering in a research note on Friday, July 10th. Finally, Northland Securities set a $40.00 target price on shares of Mayville Engineering in a research note on Thursday, August 6th. Four equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $35.75.

Mayville Engineering Stock Performance

The firm's 50 day moving average price is $31.21 and its 200-day moving average price is $25.03. The company has a debt-to-equity ratio of 0.39, a quick ratio of 0.96 and a current ratio of 1.70. The firm has a market capitalization of $608.00 million, a PE ratio of -28.36 and a beta of 1.27.

Mayville Engineering (NYSE:MEC - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The company reported $0.07 earnings per share for the quarter, beating the consensus estimate of ($0.05) by $0.12. The firm had revenue of $162.98 million during the quarter, compared to analyst estimates of $150.59 million. Mayville Engineering had a negative return on equity of 6.63% and a negative net margin of 2.95%. On average, research analysts expect that Mayville Engineering Company, Inc. will post -0.22 EPS for the current year.

Insider Buying and Selling at Mayville Engineering

In other Mayville Engineering news, SVP Sean P. Leuba sold 12,855 shares of Mayville Engineering stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $25.44, for a total transaction of $327,031.20. Following the sale, the senior vice president owned 6,633 shares of the company's stock, valued at $168,743.52. The trade was a 65.96% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Jagadeesh A. Reddy sold 15,688 shares of the stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $35.05, for a total transaction of $549,864.40. Following the completion of the sale, the chief executive officer owned 124,105 shares of the company's stock, valued at $4,349,880.25. This trade represents a 11.22% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 71,785 shares of company stock worth $2,073,629. Company insiders own 5.60% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of MEC. BNP Paribas Financial Markets increased its stake in shares of Mayville Engineering by 109.0% in 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 during the last quarter. Clearstead Advisors LLC boosted its holdings in Mayville Engineering by 194.9% in the 4th quarter. Clearstead Advisors LLC now owns 2,094 shares of the company's stock valued at $39,000 after purchasing an additional 1,384 shares during the last quarter. Legal & General Group Plc purchased a new stake in shares of Mayville Engineering in the 2nd quarter valued at approximately $53,000. State of Alaska Department of Revenue purchased a new stake in shares of Mayville Engineering in the 4th quarter valued at approximately $73,000. Finally, Persistent Asset Partners Ltd acquired a new stake in shares of Mayville Engineering during the 2nd quarter worth approximately $80,000. 45.44% of the stock is 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.

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