President Jagadeesh Reddy Just Bought 29% More Shares In Mayville Engineering Company, Inc. (NYSE:MEC)

Potential Mayville Engineering Company, Inc. (NYSE:MEC) shareholders may wish to note that the President, Jagadeesh Reddy, recently bought US$247k worth of stock, paying US$9.13 for each share. That’s a very decent purchase to our minds and it grew their holding by a solid 29%.

Check out the opportunities and risks within the US Machinery industry.

Mayville Engineering Company Insider Transactions Over The Last Year

In fact, the recent purchase by Jagadeesh Reddy was the biggest purchase of Mayville Engineering Company shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than US$9.34 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months Mayville Engineering Company insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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).

Does Mayville Engineering Company Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that Mayville Engineering Company insiders own 5.1% of the company, worth about US$9.6m. We do generally prefer see higher levels of insider ownership.

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

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. While the overall levels of insider ownership are below what we’d like to see, the history of transactions imply that Mayville Engineering Company insiders are reasonably well aligned, and optimistic for the future. While we like knowing what’s going on with the insider’s ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 2 warning signs for Mayville Engineering Company that deserve your attention before buying any shares.

Of course Mayville Engineering Company may not be the best stock to buy. So you may wish to see this free collection of high quality 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.