Mercer International (NASDAQ:MERC) Downgraded by StockNews.com to Sell

StockNews.com downgraded shares of Mercer International (NASDAQ:MERC) (TSE:MRI.U) from a hold rating to a sell rating in a report released on Friday morning.

Other analysts have also issued reports about the stock. CIBC reduced their price objective on shares of Mercer International from $10.00 to $8.50 and set a neutral rating on the stock in a research report on Tuesday, August 13th. Royal Bank of Canada reduced their price objective on shares of Mercer International from $10.00 to $8.00 and set a sector perform rating on the stock in a research report on Monday, August 12th. One investment analyst has rated the stock with a sell rating and four have given a hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of Hold and an average price target of $9.38.

Mercer International Stock Down 5.3 %

Shares of NASDAQ MERC opened at $6.38 on Friday. The firm’s 50-day moving average price is $6.87 and its 200-day moving average price is $8.62. The company has a current ratio of 3.46, a quick ratio of 2.17 and a debt-to-equity ratio of 3.22. The stock has a market capitalization of $426.63 million, a price-to-earnings ratio of -1.86 and a beta of 1.34. Mercer International has a 12-month low of $5.33 and a 12-month high of $11.20.

Mercer International (NASDAQ:MERC) (TSE:MRI.U) last announced its earnings results on Thursday, August 8th. The basic materials company reported ($0.50) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.42) by ($0.08). The business had revenue of $499.40 million for the quarter, compared to analysts’ expectations of $482.35 million. Mercer International had a negative net margin of 9.90% and a negative return on equity of 17.93%. The firm’s quarterly revenue was down 5.8% compared to the same quarter last year. During the same quarter in the prior year, the company posted ($1.48) earnings per share. On average, equities research analysts anticipate that Mercer International will post -1.15 EPS for the current fiscal year.

Mercer International Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 3rd. Stockholders of record on Wednesday, September 25th will be given a dividend of $0.075 per share. This represents a $0.30 dividend on an annualized basis and a dividend yield of 4.70%. The ex-dividend date is Wednesday, September 25th. Mercer International’s dividend payout ratio (DPR) is presently -8.75%.

Insider Transactions at Mercer International

In related news, CFO Richard George Short bought 6,000 shares of Mercer International stock in a transaction dated Friday, September 6th. The shares were acquired at an average cost of $5.70 per share, with a total value of $34,200.00. Following the completion of the transaction, the chief financial officer now owns 51,382 shares in the company, valued at approximately $292,877.40. The purchase was disclosed in a filing with the SEC, which can be accessed through this link. In other Mercer International news, CEO Estrada Juan Carlos Bueno acquired 7,800 shares of the company’s stock in a transaction dated Friday, September 13th. The shares were purchased at an average cost of $6.60 per share, for a total transaction of $51,480.00. Following the completion of the purchase, the chief executive officer now owns 67,615 shares in the company, valued at $446,259. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CFO Richard George Short acquired 6,000 shares of the company’s stock in a transaction dated Friday, September 6th. The shares were acquired at an average price of $5.70 per share, for a total transaction of $34,200.00. Following the completion of the purchase, the chief financial officer now owns 51,382 shares of the company’s stock, valued at approximately $292,877.40. The disclosure for this purchase can be found here. Over the last three months, insiders have purchased 41,300 shares of company stock valued at $252,650. 4.20% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Mercer International

A number of hedge funds and other institutional investors have recently modified their holdings of the business. SG Americas Securities LLC boosted its stake in shares of Mercer International by 26.5% during the first quarter. SG Americas Securities LLC now owns 51,201 shares of the basic materials company’s stock valued at $509,000 after purchasing an additional 10,713 shares in the last quarter. Everence Capital Management Inc. acquired a new stake in Mercer International in the first quarter valued at approximately $261,000. Finally, Russell Investments Group Ltd. acquired a new stake in Mercer International in the first quarter valued at approximately $193,000. 85.79% of the stock is currently owned by institutional investors.

Mercer International Company Profile

Mercer International Inc, together with its subsidiaries, manufactures and sells northern bleached softwood kraft (NBSK) and northern bleached hardwood kraft (NBHK) pulp worldwide. The company operates through two segments, Pulp and Solid Wood. It manufactures, sells, and distributes pulp, electricity, and chemicals through pulp mills.