Insiders who purchased Mayville Engineering Company, Inc. (NYSE:MEC) stock last year recover some losses which currently stand at US$96k

Insiders who purchased US$205k worth of Mayville Engineering Company, Inc. (NYSE:MEC) shares over the past year recouped some of their losses after price gained 12% last week. However, the purchase is proving to be an expensive wager as insiders are yet to get ahead of their losses which currently stand at US$96k since the time of purchase.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Mayville Engineering Company

The Last 12 Months Of Insider Transactions At Mayville Engineering Company

In the last twelve months, the biggest single purchase by an insider was when Independent Director Patrick Michels bought US$171k worth of shares at a price of US$17.05 per share. That means that even when the share price was higher than US$7.75 (the recent price), an insider wanted to purchase shares. It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. To us, it’s very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

While Mayville Engineering Company insiders bought shares during the last year, they didn’t sell. The average buy price was around US$14.61. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Mayville Engineering Company Insiders Bought Stock Recently

Over the last three months, we’ve seen a bit of insider buying at Mayville Engineering Company. CFO, Secretary & Treasurer Todd Butz purchased US$14k worth of shares in that period. It’s great to see that insiders are only buying, not selling. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Our data indicates that Mayville Engineering Company insiders own about US$7.9m worth of shares (which is 5.0% of the company). Whilst better than nothing, we’re not overly impressed by these holdings.

So What Does This Data Suggest About Mayville Engineering Company Insiders?

We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it’d be more encouraging if Mayville Engineering Company insiders bought more shares in the company. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Mayville Engineering Company. Every company has risks, and we’ve spotted 1 warning sign for Mayville Engineering Company you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.