UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC Lowers Stock Position in Mercury General Corporation $MCY

Key Points

• UBS Asset Management reduced its Mercury General stake by 39.1% in the second quarter, selling 32,624 shares and retaining 50,862 shares worth approximately $5.4 million. Institutional ownership stands at 42.39%.
• Analysts remain bullish, with Mercury General holding a consensus “Strong Buy” rating and an average price target of $100. The insurer exceeded quarterly expectations, reporting $3.52 in EPS versus the $2.53 consensus and revenue of $1.68 billion.
• Mercury General declared a quarterly dividend of $0.3175 per share, equivalent to an annualized $1.27 payout and a 1.2% yield.

UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC decreased its holdings in shares of Mercury General Corporation (NYSE:MCY - Free Report) by 39.1% during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 50,862 shares of the insurance provider's stock after selling 32,624 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC owned approximately 0.09% of Mercury General worth $5,423,000 at the end of the most recent reporting period.

A number of other large investors have also modified their holdings of the business. BlackRock Inc. acquired a new stake in shares of Mercury General in the 2nd quarter valued at approximately $479,604,000. Park West Asset Management LLC purchased a new position in Mercury General in the third quarter worth $23,953,000. Bank of New York Mellon Corp purchased a new position in Mercury General in the second quarter worth $26,295,000. Rubric Capital Management LP raised its position in 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. lifted its holdings in Mercury General by 2,513.7% in the second quarter. Sei Investments Co. now owns 157,893 shares of the insurance provider's stock valued at $10,633,000 after acquiring an additional 151,852 shares during the period. 42.39% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

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

Mercury General Stock Performance

Shares of NYSE MCY opened at $102.64 on Wednesday. The company has a 50-day simple moving average of $106.43 and a 200-day simple moving average of $99.26. 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 company has a market cap of $5.69 billion, a PE ratio of 6.07 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 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.53 by $0.99. The firm had revenue of $1.68 billion for the quarter, compared to analyst estimates of $1.52 billion. Mercury General had a net margin of 14.77% and a return on equity of 31.98%. On average, equities analysts anticipate that Mercury General Corporation will post 12.75 earnings per share for the current year.

Mercury General Announces Dividend

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 dividend of $0.3175 per share. The ex-dividend date is Thursday, September 10th. This represents a $1.27 annualized dividend and a dividend yield of 1.2%. Mercury General's dividend payout ratio (DPR) is 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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