Mercury General Corporation $MCY Shares Sold by Baird Financial Group Inc.

Key Points

• Baird Financial Group reduced its Mercury General stake by 21.2% in the second quarter, selling 30,806 shares and retaining 114,834 shares valued at approximately $12.2 million. Institutional investors collectively own 42.39% of the company.
• Mercury General reported strong quarterly results, with EPS of $3.52 beating estimates by $0.99 and revenue of $1.68 billion exceeding expectations. Analysts expect full-year EPS of $12.75.
• The company declared a quarterly dividend of $0.3175 per share, equivalent to an annualized $1.27 dividend and a 1.2% yield. Several analysts upgraded the stock to “Strong Buy,” although the average price target was $100, below the reported share price of $102.26.

Baird Financial Group Inc. cut its position in shares of Mercury General Corporation (NYSE:MCY - Free Report) by 21.2% during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 114,834 shares of the insurance provider's stock after selling 30,806 shares during the quarter. Baird Financial Group Inc. owned 0.21% of Mercury General worth $12,244,000 at the end of the most recent reporting period.

Other hedge funds have also recently added to or reduced their stakes in the company. Allworth Financial LP bought a new position in shares of Mercury General in the 2nd quarter worth about $35,000. Hilton Head Capital Partners LLC acquired a new position in Mercury General in the fourth quarter valued at approximately $38,000. Mcguire Capital Advisors Inc. acquired a new position in Mercury General in the fourth quarter valued at approximately $40,000. PenderFund Capital Management Ltd. bought a new position in shares of Mercury General during the second quarter valued at approximately $44,000. Finally, IFP Advisors Inc grew its holdings in shares of Mercury General by 79.4% during the fourth 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. Institutional investors and hedge funds own 42.39% of the company's stock.

Mercury General Trading Down 0.1%

Mercury General stock opened at $102.26 on Monday. The firm has a 50 day simple moving average of $105.97 and a 200-day simple moving average of $99.60. The company has a debt-to-equity ratio of 0.33, a current ratio of 0.47 and a quick ratio of 0.47. The stock has a market capitalization of $5.66 billion, a PE ratio of 6.04 and a beta of 0.90. Mercury General Corporation has a 12-month low of $74.29 and a 12-month high of $113.06.

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

Mercury General Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 24th. Investors 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 dividend payout ratio (DPR) is currently 7.51%.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on MCY shares. Wall Street Zen raised Mercury General from a "buy" rating to a "strong-buy" rating in a research report on Saturday, July 4th. Weiss Ratings reissued a "buy (b)" rating on shares of Mercury General in a report on Tuesday, September 1st. Finally, Zacks Research upgraded shares of Mercury General from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, August 18th. Two analysts have rated the stock with a Strong Buy rating and one has given a Buy rating to the company. Based on data from MarketBeat, Mercury General has an average rating of "Strong Buy" and an average target price of $100.00.

About Mercury General

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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