Hsbc Holdings PLC Takes Position in Mercury General Corporation $MCY

Key Points

• HSBC Holdings purchased 19,177 shares of Mercury General valued at approximately $2.06 million during the second quarter. BlackRock also acquired a major stake worth about $479.6 million, while institutional investors and hedge funds collectively own 42.39% of the company.
• Mercury General reported quarterly earnings of $3.52 per share, exceeding the $2.53 consensus estimate, while revenue reached $1.68 billion versus expectations of $1.52 billion.
• The company declared a quarterly dividend of $0.3175, equivalent to $1.27 annually and a 1.2% yield. Analysts maintain a favorable view, with the stock carrying an average “Strong Buy” rating despite a $100 consensus price target.

Hsbc Holdings PLC purchased a new stake in Mercury General Corporation (NYSE:MCY - Free Report) during the second quarter, according to its most recent disclosure with the SEC. The firm purchased 19,177 shares of the insurance provider's stock, valued at approximately $2,060,000.

Several other institutional investors also recently bought and sold shares of the company. BlackRock Inc. purchased a new stake in shares of Mercury General during the second quarter worth approximately $479,604,000. Principal Financial Group Inc. boosted its stake in Mercury General by 40.5% during the 1st quarter. Principal Financial Group Inc. now owns 178,064 shares of the insurance provider's stock worth $15,696,000 after purchasing an additional 51,336 shares during the last quarter. First Trust Advisors LP boosted its stake in Mercury General by 32.2% during the 1st quarter. First Trust Advisors LP now owns 62,181 shares of the insurance provider's stock worth $5,481,000 after purchasing an additional 15,139 shares during the last quarter. Ieq Capital LLC purchased a new stake in shares of Mercury General during the second quarter worth $5,429,000. Finally, Legato Capital Management LLC acquired a new stake in shares of Mercury General in the fourth quarter valued at about $538,000. 42.39% of the stock is currently owned by institutional investors and hedge funds.

Mercury General Trading Down 0.1%

Shares of MCY opened at $102.88 on Monday. Mercury General Corporation has a 12-month low of $74.29 and a 12-month high of $113.06. The firm has a market capitalization of $5.70 billion, a P/E ratio of 6.08 and a beta of 0.90. The firm has a 50-day moving average price of $106.82 and a 200 day moving average price of $98.75. The company has a current ratio of 0.47, a quick ratio of 0.47 and a debt-to-equity ratio of 0.33.

Mercury General (NYSE:MCY - Get Free Report) last issued its earnings results on Tuesday, August 4th. The insurance provider reported $3.52 EPS for the quarter, topping analysts' consensus estimates of $2.53 by $0.99. Mercury General had a net margin of 14.77% and a return on equity of 31.98%. The company had revenue of $1.68 billion for the quarter, compared to the consensus estimate of $1.52 billion. Sell-side analysts forecast that Mercury General Corporation will post 12.75 EPS for the current year.

Mercury General Dividend Announcement

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

Wall Street Analysts Forecast Growth

MCY has been the subject of several 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. Weiss Ratings restated a "buy (b)" rating on shares of Mercury General in a report on Thursday, June 4th. Finally, Zacks Research raised Mercury General from a "hold" rating to a "strong-buy" rating in a report on Tuesday, August 18th. Two equities research analysts have rated the stock with a Strong Buy rating and one has assigned a Buy rating to the stock. According to data from MarketBeat, Mercury General currently has an average rating of "Strong Buy" and a consensus target price of $100.00.

About Mercury General

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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