Bank of America Corp DE Makes New $7.42 Million Investment in Mercury General Corporation $MCY

Key Points

• Bank of America acquired 69,634 shares of Mercury General in the second quarter, valued at approximately $7.42 million, giving it a 0.13% stake.
• Mercury General reported strong quarterly results, with earnings of $3.52 per share and revenue of $1.68 billion, exceeding analyst estimates. Institutional investors and hedge funds collectively own 42.39% of the company.
• The company pays a quarterly dividend of $0.3175, equivalent to an annualized $1.27 payout and a 1.3% yield. Analysts tracked by MarketBeat give the stock an average rating of “Strong Buy.”

Bank of America Corp DE acquired a new stake in Mercury General Corporation (NYSE:MCY - Free Report) in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund acquired 69,634 shares of the insurance provider's stock, valued at approximately $7,424,000. Bank of America Corp DE owned 0.13% of Mercury General as of its most recent SEC filing.

Several other institutional investors have also recently added to or reduced their stakes in MCY. Allworth Financial LP purchased a new stake in Mercury General in the second quarter valued at approximately $35,000. Hilton Head Capital Partners LLC purchased a new position in Mercury General during the fourth quarter worth approximately $38,000. IFP Advisors Inc boosted its holdings in shares of Mercury General by 79.4% in the 4th quarter. IFP Advisors Inc now owns 506 shares of the insurance provider's stock valued at $48,000 after purchasing an additional 224 shares during the last quarter. State of Wyoming acquired a new position in shares of Mercury General in the 2nd quarter valued at $78,000. Finally, Global Retirement Partners LLC purchased a new stake in shares of Mercury General during the 2nd quarter valued at $107,000. 42.39% of the stock is currently owned by institutional investors and hedge funds.

Mercury General Price Performance

Mercury General stock opened at $99.62 on Monday. Mercury General Corporation has a 52-week low of $74.29 and a 52-week high of $113.06. The firm has a fifty day moving average of $104.26 and a 200-day moving average of $100.32. The firm has a market capitalization of $5.52 billion, a P/E ratio of 5.89 and a beta of 0.90. The company has a quick ratio of 0.47, a current ratio of 0.47 and a debt-to-equity ratio of 0.33.

Mercury General (NYSE:MCY - Get Free Report) last posted its earnings results on Tuesday, August 4th. The insurance provider reported $3.52 earnings per share for the quarter, beating the consensus estimate of $2.53 by $0.99. Mercury General had a net margin of 14.77% and a return on equity of 31.98%. The business had revenue of $1.68 billion for the quarter, compared to analyst estimates of $1.52 billion. As a group, analysts predict that Mercury General Corporation will post 12.75 EPS for the current year.

Mercury General Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, September 24th. Stockholders of record on Thursday, September 10th were paid a $0.3175 dividend. The ex-dividend date was Thursday, September 10th. This represents a $1.27 annualized dividend and a dividend yield of 1.3%. Mercury General's dividend payout ratio is 7.51%.

Analysts Set New Price Targets

MCY has been the subject of a number of research analyst reports. Wall Street Zen upgraded Mercury General from a "buy" rating to a "strong-buy" rating in a report on Saturday, July 4th. Zacks Research raised Mercury General from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, August 18th. Finally, Weiss Ratings restated a "buy (b)" rating on shares of Mercury General in a research note on Tuesday, September 1st. One equities research analyst has rated the stock with a Strong Buy rating and one has issued a Buy rating to the company. Based on data from MarketBeat, the stock has an average rating of "Strong Buy".

Mercury General Profile

Mercury General Corporation is an insurance holding company that writes personal and commercial property and casualty insurance. Its principal business is automobile insurance, including coverage for private passenger vehicles and commercial vehicles. The company also offers homeowners, renters, condominium, and other property-related insurance products, along with selected mechanical protection and umbrella coverage.

Founded in 1961, Mercury General is based in Los Angeles, California, and operates primarily through subsidiaries that market insurance directly and through independent agents.

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