BlackRock Inc. Takes Position in Mercury General Corporation $MCY

Key Points

• BlackRock acquired 4.5 million shares of Mercury General in the second quarter, worth approximately $479.6 million and representing an 8.12% stake. Institutional investors collectively own 42.39% of the insurer.
• Mercury General reported strong quarterly results, with earnings of $3.52 per share versus the $2.53 analyst consensus and revenue of $1.68 billion, ahead of the $1.52 billion estimate.
• The company declared a quarterly dividend of $0.3175 per share, or $1.27 annually, yielding about 1.2%. Analysts remain bullish, with an average “Strong Buy” rating, although the $100 average price target is below the stock’s $106.22 opening price.

BlackRock Inc. purchased a new position in shares of Mercury General Corporation (NYSE:MCY - Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund purchased 4,498,256 shares of the insurance provider's stock, valued at approximately $479,604,000. BlackRock Inc. owned approximately 8.12% of Mercury General at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also modified their holdings of MCY. Pallas Capital Advisors LLC purchased a new stake in Mercury General during the second quarter worth $446,000. Deutsche Bank AG purchased a new position in shares of Mercury General in the second quarter valued at $3,318,000. Global Retirement Partners LLC purchased a new position in shares of Mercury General in the second quarter valued at $107,000. Bank of New York Mellon Corp acquired a new position in shares of Mercury General during the 2nd quarter worth $26,295,000. Finally, Focus Partners Advisor Solutions LLC acquired a new position in shares of Mercury General during the 2nd quarter worth $341,000. Institutional investors and hedge funds own 42.39% of the company's stock.

Mercury General Stock Up 0.5%

Shares of NYSE:MCY opened at $106.22 on Tuesday. 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 Corporation has a 52-week low of $74.29 and a 52-week high of $113.06. The stock's fifty day simple moving average is $106.68 and its 200-day simple moving average is $98.46. The company has a market capitalization of $5.88 billion, a P/E ratio of 6.28 and a beta of 0.90.

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

Mercury General Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, September 10th will be issued a dividend of $0.3175 per share. The ex-dividend date is Thursday, September 10th. This represents a $1.27 dividend on an annualized basis and a dividend yield of 1.2%. Mercury General's payout ratio is 7.51%.

Wall Street Analyst Weigh In

MCY has been the topic of a number of research reports. Wall Street Zen raised shares of Mercury General from a "buy" rating to a "strong-buy" rating in a research note on Saturday, July 4th. Zacks Research upgraded shares of Mercury General from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, August 18th. Finally, Weiss Ratings reaffirmed a "buy (b)" rating on shares of Mercury General in a report on Thursday, June 4th. Two equities research analysts have rated the stock with a Strong Buy rating and one has given a Buy rating to the company. According to data from MarketBeat, Mercury General has an average rating of "Strong Buy" and an average price target of $100.00.

Mercury General Company Profile

Mercury General Corporation is a holding company headquartered in Los Angeles, California, that underwrites and markets property and casualty insurance products through its principal subsidiary, Mercury Insurance Company. Established in 1961, the company has built a reputation for offering a broad range of personal and commercial lines, with a focus on automobile coverage. Mercury General operates in key U.S. markets, deploying a mix of independent agents and direct distribution channels to serve policyholders.

The company's product portfolio includes personal automobile insurance, homeowners and renters policies, as well as commercial automobile, business liability and umbrella insurance.

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