Denali Advisors LLC Buys 43,321 Shares of Mercury General Corporation $MCY

Key Points

• Denali Advisors more than doubled its Mercury General stake in the second quarter, purchasing 43,321 additional shares to hold 81,535 shares valued at approximately $8.7 million.
• Institutional interest increased, with BlackRock and several other investors initiating or expanding positions; institutions collectively own 42.39% of Mercury General.
• Mercury General reported quarterly earnings of $3.52 per share, exceeding estimates by $0.99, while revenue also topped forecasts. The company announced a quarterly dividend of $0.3175 per share, representing a 1.2% annualized yield.

Denali Advisors LLC grew its stake in shares of Mercury General Corporation (NYSE:MCY - Free Report) by 113.4% in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 81,535 shares of the insurance provider's stock after acquiring an additional 43,321 shares during the period. Mercury General accounts for 0.9% of Denali Advisors LLC's holdings, making the stock its 25th largest position. Denali Advisors LLC owned about 0.15% of Mercury General worth $8,693,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors also recently made changes to their positions in the company. BlackRock Inc. acquired a new position in shares of Mercury General in the second quarter valued at approximately $479,604,000. Park West Asset Management LLC acquired a new stake in Mercury General during the 3rd quarter worth approximately $23,953,000. Bank of New York Mellon Corp bought a new stake in Mercury General in the 2nd quarter valued at $26,295,000. Rubric Capital Management LP boosted its stake in Mercury General by 12.8% in the 2nd quarter. Rubric Capital Management LP now owns 2,054,504 shares of the insurance provider's stock valued at $138,350,000 after purchasing an additional 232,721 shares during the period. Finally, Sei Investments Co. grew its holdings in Mercury General by 2,513.7% in the 2nd quarter. Sei Investments Co. now owns 157,893 shares of the insurance provider's stock valued at $10,633,000 after buying an additional 151,852 shares in the last quarter. Institutional investors own 42.39% of the company's stock.

Mercury General Trading Down 1.7%

Shares of MCY opened at $104.55 on Thursday. The company has a debt-to-equity ratio of 0.33, a quick ratio of 0.47 and a current ratio of 0.47. Mercury General Corporation has a 52-week low of $73.73 and a 52-week high of $113.06. The firm has a market cap of $5.79 billion, a price-to-earnings ratio of 6.18 and a beta of 0.90. The business's fifty day moving average is $106.38 and its 200-day moving average is $98.11.

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

Mercury General Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 24th. Shareholders of record on Thursday, September 10th will be paid a dividend of $0.3175 per share. The ex-dividend date of this dividend is Thursday, September 10th. This represents a $1.27 annualized dividend and a yield of 1.2%. Mercury General's payout ratio is presently 7.51%.

Analyst Ratings Changes

Several research analysts have weighed in on the company. Wall Street Zen upgraded Mercury General from a "buy" rating to a "strong-buy" rating in a research report on Saturday, July 4th. Zacks Research cut Mercury General from a "strong-buy" rating to a "hold" rating in a research report on Friday, July 17th. Finally, Weiss Ratings reaffirmed a "buy (b)" rating on shares of Mercury General in a research report on Thursday, June 4th. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "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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