Form 4: Mayville Engineering CEO Sells Shares Under 10b5-1 Plan

Jagadeesh A. Reddy, President & CEO of Mayville Engineering Company, Inc. (MEC), reported the sale of 1,300 common shares for $35.00 per share, executed under a pre-arranged Rule 10b5-1 trading plan.

Summary

• Jagadeesh A. Reddy, President & CEO and Director of Mayville Engineering Company, Inc. (MEC), reported a transaction on June 8, 2026.
• The transaction involved the sale of 1,300 shares of common stock at a weighted average price of $35.00 per share, with actual prices ranging from $35.00 to $35.02.
• This sale was conducted under a Rule 10b5-1 trading plan adopted on December 12, 2025, which is designed to comply with affirmative defense conditions for insider trading.
• Following this transaction, Reddy beneficially owns 139,793 shares of common stock directly.
• Additionally, Reddy has indirect beneficial ownership through an ESOP and/or 401(k) Plan, and shares held by his daughter.
• The filing also details various restricted stock units (RSUs) and stock options held by Reddy, with specific vesting schedules outlined for each.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this filing as neutral, as the reported stock sale was conducted under a pre-arranged Rule 10b5-1 plan, which is a standard and compliant method for insider stock dispositions.

Positives

• The sale was executed under a Rule 10b5-1 trading plan, indicating a pre-determined and structured approach to stock disposition, which can mitigate concerns about insider trading.
• The weighted average sale price of $35.00 per share suggests a stable market price at the time of the transaction.
• Reddy continues to hold a significant number of shares (139,793 directly) and has substantial unvested RSUs and stock options, indicating continued commitment and potential future upside.

Negatives

• The sale of 1,300 shares by the CEO represents a disposition of company stock, which could be perceived negatively by the market, although it was planned.
• The weighted average price range of $35.00 to $35.02 indicates a minor fluctuation in sale prices, though the overall price point is consistent.

Risks

• The primary risk is the potential market perception of a CEO selling shares, even if conducted under a Rule 10b5-1 plan.
• Future vesting of RSUs and stock options is subject to continued employment and potentially other performance metrics, which carry inherent risks.

Future Outlook

The filing does not contain explicit forward-looking statements or guidance. However, the vesting schedules for RSUs and stock options indicate potential future equity awards for the reporting person.

Industry Context

StockSavvy.ai notes that the use of Rule 10b5-1 plans by executives is a common practice in the manufacturing sector to manage personal stock sales in a compliant manner, especially for companies with publicly traded securities.

Stakeholder Impact

• Shareholders: The sale, though planned, might be viewed with caution, but the continued substantial ownership by the CEO and the use of a 10b5-1 plan should mitigate significant negative sentiment.
• Employees: The CEO's continued indirect ownership through ESOP/401(k) plans suggests alignment with employee benefit programs.
• Management: The transaction highlights standard corporate governance practices regarding executive stock transactions.

Next Steps

• Continued vesting of restricted stock units and stock options according to their respective schedules.
• Potential future transactions under the Rule 10b5-1 plan, if still active or if new plans are adopted.

Key Dates

Keywords

Mayville Engineering Company, MEC, Form 4, SEC Filing, Insider Trading, Rule 10b5-1, Stock Sale, Jagadeesh A. Reddy, Beneficial Ownership, Restricted Stock Units, Stock Options