The Manufacturers Life Insurance Company Invests $1.63 Million in Mercury General Corporation $MCY

Key Points

• The Manufacturers Life Insurance Company acquired 15,322 Mercury General shares worth approximately $1.63 million during the second quarter. Institutional investors and hedge funds collectively own 42.39% of the insurer.
• Analyst sentiment is strongly positive: Mercury General received two Strong Buy ratings and one Buy rating, with an average price target of $100, despite shares recently opening at $105.95.
• Mercury General exceeded quarterly expectations, reporting $3.52 in earnings per share and $1.68 billion in revenue. The company also announced a quarterly dividend of $0.3175 per share, representing a 1.2% annualized yield.

The Manufacturers Life Insurance Company acquired a new stake in Mercury General Corporation (NYSE:MCY - Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm acquired 15,322 shares of the insurance provider's stock, valued at approximately $1,634,000.

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

Wall Street Analyst Weigh In

Several analysts have recently issued reports on MCY shares. Zacks Research upgraded Mercury General from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, August 18th. Weiss Ratings reissued a "buy (b)" rating on shares of Mercury General in a research note on Tuesday. Finally, Wall Street Zen upgraded Mercury General from a "buy" rating to a "strong-buy" rating in a report on Saturday, July 4th. Two equities research analysts have rated the stock with a Strong Buy rating and one has assigned a Buy rating to the company. According to MarketBeat.com, Mercury General currently has an average rating of "Strong Buy" and an average target price of $100.00.

Mercury General Price Performance

Shares of MCY opened at $105.95 on Friday. Mercury General Corporation has a twelve month low of $74.29 and a twelve month high of $113.06. The firm's fifty day simple moving average is $106.63 and its 200-day simple moving average is $99.02. The firm has a market capitalization of $5.87 billion, a price-to-earnings ratio of 6.26 and a beta of 0.90. 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 firm had revenue of $1.68 billion during the quarter, compared to the consensus estimate of $1.52 billion. Equities analysts forecast that Mercury General Corporation will post 12.75 EPS for the current fiscal year.

Mercury General Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders 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 dividend yield of 1.2%. Mercury General's dividend payout ratio is presently 7.51%.

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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