What Happened?

Shares of vertically integrated manufacturing solutions provider Mayville Engineering Company (NYSE: MEC) fell 7% in the afternoon session after DA Davidson lowered its price target on the stock in response to weak second-quarter results and a reduced outlook. The investment firm cut its price expectation to $18.00 from $23.00. The move followed Mayville's report of a 19.1% sales drop in the second quarter, which resulted in a net loss of $1.1 million. The manufacturer pointed to weaker demand from customers in key markets like agriculture and construction. Compounding the negative news, the company slashed its full-year financial guidance and withdrew its 2026 financial targets, citing an uncertain economic outlook.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Mayville Engineering? Access our full analysis report here, it’s free.

What Is The Market Telling Us

Mayville Engineering’s shares are somewhat volatile and have had 12 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 1 day ago when the stock dropped 16.3% on the news that the company reported disappointing second-quarter results and slashed its full-year financial guidance, citing weak market demand. The manufacturing company's sales fell 19.1% from the prior year, hit by customers reducing their stockpiles across key markets like agriculture and construction. This sales slump resulted in a net loss of $1.1 million, a stark contrast to the $3.8 million profit recorded in the same quarter last year. Looking forward, the company cut its full-year revenue and earnings forecasts, pointing to continued soft demand. In a significant move that added to investor worries, Mayville also withdrew its 2026 financial targets, citing an uncertain economic outlook and weak market conditions.

Mayville Engineering is down 9.6% since the beginning of the year, and at $14.05 per share, it is trading 35.6% below its 52-week high of $21.81 from November 2024. Investors who bought $1,000 worth of Mayville Engineering’s shares 5 years ago would now be looking at an investment worth $1,756.

Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free and will only take you a second.