Mayville, WI—Jagadeesh A. Reddy, President and CEO of Mayville Engineering Company, Inc. (NYSE:MEC), has increased his holdings in the company through a recent stock purchase. According to a Form 4 filing with the Securities and Exchange Commission, Reddy acquired 5,903 shares of common stock on November 7 at a weighted average price of $16.72 per share, totaling approximately $98,698.
Following this transaction, Reddy's direct ownership in the company amounts to 89,052 shares. Additionally, he holds 1,560 shares indirectly through an ESOP and/or 401(k) plan. The filing also indicates that Reddy possesses various restricted stock units and stock options, further solidifying his investment in Mayville Engineering.
This acquisition comes as Reddy continues to lead the company, which operates in the metal forging and stampings industry, from its headquarters in Mayville, Wisconsin.
In other recent news, Mayville Engineering Company (MEC) held its third-quarter 2024 earnings call. The call, led by President and CEO Jag Reddy and CFO Todd Butz, included forward-looking statements about MEC's future business and financial expectations. However, the company acknowledged that actual results may differ from projections due to various risks and uncertainties. Despite these challenges, MEC remains committed to advancing its strategic priorities. Specific financial performance details were not provided, and the company emphasized that non-GAAP financial measures were discussed, with reconciliations available on their website. It's important to note these are recent developments, and the company has not committed to updating these forward-looking statements, except as required by law.
InvestingPro Insights
Jagadeesh A. Reddy's recent purchase of Mayville Engineering Company (NYSE:MEC) shares aligns with several positive indicators highlighted by InvestingPro. The company's stock has shown strong performance, with a 56.1% price total return over the past year and a 28.71% return over the last six months. This upward trend suggests that Reddy's investment decision may be well-timed.
InvestingPro Tips point out that MEC is trading at a low P/E ratio relative to its near-term earnings growth, with a PEG ratio of 0.68 as of the last twelve months ending Q3 2024. This metric indicates that the stock may be undervalued considering its growth prospects. Additionally, the company's valuation implies a strong free cash flow yield, which could be attractive to value-oriented investors like Reddy.
Despite recent market volatility, with the stock taking a hit over the last week (-14.36%) and month (-12.87%), MEC's fundamentals appear solid. The company's revenue for the last twelve months ending Q3 2024 stood at $608.88 million, with a 7.13% growth rate. Moreover, MEC's EBITDA grew by an impressive 33.03% over the same period, reaching $64.48 million.
For investors seeking more comprehensive analysis, InvestingPro offers 13 additional tips for MEC, providing a deeper understanding of the company's financial health and market position.
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