Rubric Capital Management LP Buys 100,000 Shares of Mercury General Corporation $MCY

Key Points

• Rubric Capital Management increased its Mercury General stake by 4.9%, purchasing 100,000 additional shares to own 2.15 million shares, or approximately 3.89% of the insurer. Institutional investors and hedge funds collectively own 42.39% of the company.
• Mercury General reported strong quarterly results, with EPS of $3.50 versus the $2.15 consensus estimate and revenue of $1.54 billion, exceeding analyst expectations of $1.46 billion.
• The stock opened at $108.40, near its 52-week high, while analysts maintained an overall “Buy” rating with an average price target of $100. The company also paid a quarterly dividend of $0.3175 per share, equivalent to a 1.2% yield.

Rubric Capital Management LP increased its stake in Mercury General Corporation (NYSE:MCY - Free Report) by 4.9% in the 1st quarter, according to the company in its most recent filing with the SEC. The fund owned 2,154,504 shares of the insurance provider's stock after purchasing an additional 100,000 shares during the quarter. Mercury General makes up 2.0% of Rubric Capital Management LP's investment portfolio, making the stock its 11th largest holding. Rubric Capital Management LP owned approximately 3.89% of Mercury General worth $189,920,000 as of its most recent filing with the SEC.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Park West Asset Management LLC bought a new position in shares of Mercury General in the third quarter valued at approximately $23,953,000. Sei Investments Co. grew its stake 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 during the last quarter. Philosophy Capital Management LLC acquired a new position in Mercury General in the 3rd quarter valued at $11,778,000. Two Sigma Investments LP raised its holdings in Mercury General by 45.1% in the 3rd quarter. Two Sigma Investments LP now owns 229,994 shares of the insurance provider's stock worth $19,499,000 after acquiring an additional 71,454 shares during the period. Finally, UBS Group AG lifted its position in Mercury General by 104.1% during the 3rd quarter. UBS Group AG now owns 139,367 shares of the insurance provider's stock worth $11,816,000 after acquiring an additional 71,090 shares during the last quarter. Institutional investors and hedge funds own 42.39% of the company's stock.

Mercury General Price Performance

NYSE:MCY opened at $108.40 on Tuesday. The stock has a market cap of $6.00 billion, a P/E ratio of 7.15 and a beta of 0.89. Mercury General Corporation has a one year low of $66.57 and a one year high of $113.06. The company has a fifty day moving average price of $104.10 and a 200 day moving average price of $95.94. The company has a debt-to-equity ratio of 0.22, a current ratio of 0.44 and a quick ratio of 0.44.

Mercury General (NYSE:MCY - Get Free Report) last posted its quarterly earnings results on Tuesday, May 5th. The insurance provider reported $3.50 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.15 by $1.35. Mercury General had a net margin of 13.68% and a return on equity of 32.94%. The company had revenue of $1.54 billion for the quarter, compared to analyst estimates of $1.46 billion. Analysts anticipate that Mercury General Corporation will post 11.5 earnings per share for the current year.

Mercury General Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, June 25th. Investors of record on Thursday, June 11th were paid a $0.3175 dividend. This represents a $1.27 annualized dividend and a dividend yield of 1.2%. The ex-dividend date was Thursday, June 11th. Mercury General's dividend payout ratio (DPR) is presently 8.37%.

Analysts Set New Price Targets

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