Westwood Holdings Group Inc. Purchases Shares of 491,687 Mercury General Corporation (NYSE:MCY)

Key Points

• Westwood Holdings Group Inc. has invested approximately $27.49 million in Mercury General Corporation, acquiring 491,687 shares, which represents 0.89% of the company's stock.
• Analysts from Raymond James Financial have upgraded Mercury General's rating to "strong-buy" with a target price increase to $90.00.
• Mercury General's recent quarterly earnings showed an EPS of $2.67, surpassing expectations, and the company has announced a upcoming quarterly dividend of $0.3175 per share, yielding 1.8% annually.

Westwood Holdings Group Inc. purchased a new position in Mercury General Corporation (NYSE:MCY - Free Report) in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm purchased 491,687 shares of the insurance provider's stock, valued at approximately $27,485,000. Westwood Holdings Group Inc. owned 0.89% of Mercury General at the end of the most recent reporting period.

Other hedge funds also recently made changes to their positions in the company. Wealth Enhancement Advisory Services LLC purchased a new stake in Mercury General during the 1st quarter worth about $384,000. Convergence Financial LLC purchased a new position in Mercury General during the 1st quarter valued at about $232,000. Point72 Asset Management L.P. increased its position in shares of Mercury General by 5.2% during the fourth quarter. Point72 Asset Management L.P. now owns 218,312 shares of the insurance provider's stock valued at $14,513,000 after buying an additional 10,812 shares during the period. Franklin Resources Inc. lifted its holdings in shares of Mercury General by 32.6% in the fourth quarter. Franklin Resources Inc. now owns 22,964 shares of the insurance provider's stock worth $1,527,000 after buying an additional 5,652 shares in the last quarter. Finally, Raymond James Financial Inc. bought a new position in shares of Mercury General in the fourth quarter valued at approximately $2,595,000. 42.39% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

MCY has been the subject of several recent analyst reports. Raymond James Financial reaffirmed a "strong-buy" rating and set a $90.00 price objective (up previously from $80.00) on shares of Mercury General in a research note on Monday. Wall Street Zen raised shares of Mercury General from a "hold" rating to a "buy" rating in a report on Saturday, August 2nd.

Mercury General Price Performance

NYSE:MCY traded down $1.06 during trading hours on Thursday, hitting $70.33. 242,175 shares of the company's stock traded hands, compared to its average volume of 312,845. Mercury General Corporation has a 52 week low of $44.19 and a 52 week high of $80.72. The business's fifty day simple moving average is $66.85 and its two-hundred day simple moving average is $58.99. The company has a quick ratio of 0.43, a current ratio of 0.43 and a debt-to-equity ratio of 0.29. The firm has a market cap of $3.90 billion, a P/E ratio of 9.99 and a beta of 0.96.

Mercury General (NYSE:MCY - Get Free Report) last released its quarterly earnings results on Tuesday, July 29th. The insurance provider reported $2.67 earnings per share for the quarter, beating the consensus estimate of ($0.10) by $2.77. Mercury General had a return on equity of 16.61% and a net margin of 6.76%. The firm had revenue of $1.48 billion for the quarter, compared to analysts' expectations of $1.45 billion. On average, research analysts anticipate that Mercury General Corporation will post -0.5 earnings per share for the current fiscal year.

Mercury General Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 25th. Shareholders of record on Thursday, September 11th will be paid a $0.3175 dividend. This represents a $1.27 dividend on an annualized basis and a yield of 1.8%. The ex-dividend date of this dividend is Thursday, September 11th. Mercury General's payout ratio is currently 18.04%.

About Mercury General

Mercury General Corporation, together with its subsidiaries, engages in writing personal automobile insurance in the United States. The company also writes homeowners, commercial automobile, commercial property, mechanical protection, and umbrella insurance products. Its automobile insurance products include collision, property damage, bodily injury, comprehensive, personal injury protection, underinsured and uninsured motorist, and other hazards; and homeowners insurance products comprise dwelling, liability, personal property, and other coverages.