Mercury General (NYSE:MCY) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research downgraded Mercury General from “strong buy” to “hold.” Across analysts, the stock has a “Moderate Buy” consensus rating and an average price target of $100.
• Mercury General reported quarterly earnings of $3.49 per share, above the $3.43 estimate, while revenue of $1.38 billion fell short of analysts’ $1.62 billion expectation.
• Director Joshua Little bought 750 shares at an average price of $82.69, increasing his ownership by 23.08% to 4,000 shares.

Mercury General (NYSE:MCY - Get Free Report) was downgraded by investment analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued on Tuesday, Zacks reports.

Other research analysts also recently issued research reports about the stock. Raymond James Financial reaffirmed a "strong-buy" rating and issued a $100.00 target price on shares of Mercury General in a research report on Monday. Wall Street Zen cut shares of Mercury General from a "strong-buy" rating to a "hold" rating in a research report on Saturday, November 7th. Finally, Weiss Ratings cut shares of Mercury General from a "buy (b)" rating to a "hold (c+)" rating in a research report on Wednesday, November 4th. One equities research analyst has rated the stock with a Strong Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, Mercury General currently has an average rating of "Moderate Buy" and an average price target of $100.00.

Mercury General Trading Up 2.0%

NYSE MCY opened at $85.89 on Tuesday. The stock has a market capitalization of $4.76 billion, a price-to-earnings ratio of 7.40 and a beta of 0.93. The stock's 50 day moving average price is $99.95 and its two-hundred day moving average price is $98.56. The company has a debt-to-equity ratio of 0.20, a quick ratio of 0.38 and a current ratio of 0.38. Mercury General has a 52 week low of $81.64 and a 52 week high of $113.06.

Mercury General (NYSE:MCY - Get Free Report) last issued its quarterly earnings results on Tuesday, November 3rd. The insurance provider reported $3.49 earnings per share for the quarter, topping the consensus estimate of $3.43 by $0.06. The company had revenue of $1.38 billion during the quarter, compared to analysts' expectations of $1.62 billion. Mercury General had a net margin of 10.47% and a return on equity of 29.48%. As a group, analysts anticipate that Mercury General will post 13.32 earnings per share for the current fiscal year.

Insider Activity at Mercury General

In other news, Director Joshua Little bought 750 shares of the firm's stock in a transaction that occurred on Friday, November 6th. The stock was acquired at an average cost of $82.69 per share, with a total value of $62,017.50. Following the completion of the purchase, the director owned 4,000 shares of the company's stock, valued at $330,760. This represents a 23.08% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through this link. Insiders own 35.50% of the company's stock.

Institutional Trading of Mercury General

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Root Financial Partners LLC bought a new position in shares of Mercury General in the 3rd quarter valued at about $30,000. Allworth Financial LP acquired a new position in shares of Mercury General during the 2nd quarter worth about $35,000. PenderFund Capital Management Ltd. bought a new stake in shares of Mercury General in the 2nd quarter valued at about $44,000. Parallel Advisors LLC raised its holdings in shares of Mercury General by 290.7% in the 3rd quarter. Parallel Advisors LLC now owns 461 shares of the insurance provider's stock valued at $46,000 after purchasing an additional 343 shares during the period. Finally, Caitlin John LLC bought a new stake in shares of Mercury General in the 2nd quarter valued at about $53,000. 42.39% of the stock is owned by institutional investors.

Mercury General Company Profile

Mercury General Corporation is a property and casualty insurance company best known for its personal auto insurance. Through its insurance subsidiaries, the company also offers homeowners, renters, commercial auto, and other insurance products, including umbrella coverage. Founded in 1961, Mercury distributes policies through independent agents and direct-to-consumer channels. California is its primary market, and the company also serves customers in other U.S. states.

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