Mayville Engineering (NYSE:MEC) Trading Down 4% – Here’s Why

Mayville Engineering Company, Inc. (NYSE:MEC)’s stock price dropped 4% during mid-day trading on Friday . The company traded as low as $21.72 and last traded at $21.75. Approximately 218,655 shares traded hands during mid-day trading, a decline of 41% from the average daily volume of 371,820 shares. The stock had previously closed at $22.65.

Wall Street Analysts Forecast Growth

MEC has been the topic of several recent research reports. DA Davidson upped their price target on Mayville Engineering from $32.00 to $36.00 and gave the stock a “buy” rating in a report on Wednesday, July 22nd. Citigroup lifted their price objective on Mayville Engineering from $33.00 to $43.00 and gave the company a “buy” rating in a research note on Monday, July 13th. Northland Securities set a $40.00 price objective on Mayville Engineering in a research report on Thursday, August 6th. Finally, Weiss Ratings restated a “sell (d+)” rating on shares of Mayville Engineering in a research note on Friday, July 10th. Four equities 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 company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $35.75.

Mayville Engineering Stock Down 3.6%

The firm has a 50-day moving average price of $30.32 and a two-hundred day moving average price of $25.14. The firm has a market cap of $556.66 million, a price-to-earnings ratio of -25.99 and a beta of 1.27. The company has a debt-to-equity ratio of 0.39, a quick ratio of 0.96 and a current ratio of 1.70.

Mayville Engineering (NYSE:MEC) last announced its quarterly earnings results on Tuesday, August 4th. The company reported $0.07 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.05) by $0.12. The firm had revenue of $162.98 million during the quarter, compared to the consensus estimate 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, sell-side analysts forecast that Mayville Engineering Company, Inc. will post -0.22 earnings per share for the current year.

Insider Activity

In other news, SVP Sean P. Leuba sold 12,855 shares of the company’s stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $25.44, for a total value of $327,031.20. Following the completion of the transaction, the senior vice president owned 6,633 shares in the company, valued at approximately $168,743.52. This represents a 65.96% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, EVP Ryan F. Raber sold 20,000 shares of the stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $26.00, for a total transaction of $520,000.00. Following the completion of the transaction, the executive vice president directly owned 86,970 shares in the company, valued at $2,261,220. This trade represents a 18.70% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 67,785 shares of company stock worth $1,980,669. Corporate insiders own 5.60% of the company’s stock.

Hedge Funds Weigh In On Mayville Engineering

Several hedge funds have recently made changes to their positions in MEC. Empowered Funds LLC lifted its holdings in shares of Mayville Engineering by 7.3% in the 1st quarter. Empowered Funds LLC now owns 98,207 shares of the company’s stock valued at $1,319,000 after purchasing an additional 6,694 shares during the last quarter. Jane Street Group LLC grew its stake in Mayville Engineering by 158.6% during the 1st quarter. Jane Street Group LLC now owns 47,194 shares of the company’s stock worth $634,000 after buying an additional 28,946 shares during the last quarter. Geode Capital Management LLC grew its stake in Mayville Engineering by 9.5% during the 2nd quarter. Geode Capital Management LLC now owns 318,321 shares of the company’s stock worth $5,081,000 after buying an additional 27,552 shares during the last quarter. JPMorgan Chase & Co. increased its position in Mayville Engineering by 20.7% during the second quarter. JPMorgan Chase & Co. now owns 7,936 shares of the company’s stock worth $127,000 after buying an additional 1,359 shares during the period. Finally, Rhumbline Advisers increased its position in Mayville Engineering by 8.3% during the second quarter. Rhumbline Advisers now owns 19,969 shares of the company’s stock worth $319,000 after buying an additional 1,526 shares during the period. Hedge funds and other 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.