Mercer International Inc. (NASDAQ:MERC) Receives Average Rating of "Reduce" from Analysts

Key Points

• Mercer International Inc. has received an average analyst rating of "Reduce", with one sell rating and four hold ratings, and an average 1-year target price of $4.25.
• The company reported a loss of $1.29 earnings per share (EPS) for the most recent quarter, missing analysts' expectations and showing a negative return on equity of 23.88%.
• Major shareholder Peter R. Kellogg increased his stake in Mercer International by 49.35% after purchasing 760,000 shares for about $2.47 million.

Shares of Mercer International Inc. (NASDAQ:MERC - Get Free Report) TSE: MRI.U have earned a consensus recommendation of "Reduce" from the five ratings firms that are presently covering the company, Marketbeat.com reports. One research analyst has rated the stock with a sell rating and four have issued a hold rating on the company. The average 1-year target price among brokers that have updated their coverage on the stock in the last year is $4.25.

MERC has been the topic of a number of research reports. TD Securities dropped their price objective on Mercer International from $3.50 to $3.00 and set a "hold" rating on the stock in a report on Tuesday, August 5th. CIBC decreased their price target on shares of Mercer International from $5.00 to $4.00 and set a "neutral" rating for the company in a report on Tuesday, July 22nd. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of Mercer International in a research note on Saturday, September 27th.

Mercer International Stock Up 1.4%

Shares of MERC stock traded up $0.04 on Friday, reaching $2.82. 238,900 shares of the company's stock traded hands, compared to its average volume of 469,683. The business's 50 day moving average price is $3.14 and its two-hundred day moving average price is $3.89. The company has a debt-to-equity ratio of 3.42, a quick ratio of 1.73 and a current ratio of 3.10. The company has a market capitalization of $188.88 million, a P/E ratio of -1.73 and a beta of 0.96. Mercer International has a 12-month low of $2.59 and a 12-month high of $8.28.

Mercer International (NASDAQ:MERC - Get Free Report) TSE: MRI.U last posted its quarterly earnings results on Thursday, July 31st. The basic materials company reported ($1.29) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.73) by ($0.56). Mercer International had a negative return on equity of 23.88% and a negative net margin of 5.60%.The company had revenue of $453.52 million during the quarter, compared to analysts' expectations of $514.46 million. On average, equities analysts forecast that Mercer International will post -0.29 earnings per share for the current year.

Insider Transactions at Mercer International

In related news, major shareholder Peter R. Kellogg acquired 760,000 shares of the stock in a transaction on Tuesday, July 22nd. The stock was purchased at an average price of $3.25 per share, for a total transaction of $2,470,000.00. Following the transaction, the insider owned 2,300,000 shares of the company's stock, valued at $7,475,000. The trade was a 49.35% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Linda J. Welty bought 10,000 shares of Mercer International stock in a transaction dated Monday, August 18th. The stock was acquired at an average cost of $3.09 per share, for a total transaction of $30,900.00. Following the purchase, the director directly owned 36,290 shares in the company, valued at approximately $112,136.10. The trade was a 38.04% increase in their position. The disclosure for this purchase can be found here. In the last 90 days, insiders have acquired 772,000 shares of company stock valued at $2,506,880. Corporate insiders own 1.00% of the company's stock.

Hedge Funds Weigh In On Mercer International

Several institutional investors and hedge funds have recently made changes to their positions in MERC. Gabelli Funds LLC acquired a new position in Mercer International in the second quarter valued at about $1,804,000. Jump Financial LLC lifted its holdings in shares of Mercer International by 340.6% during the 2nd quarter. Jump Financial LLC now owns 276,837 shares of the basic materials company's stock valued at $969,000 after purchasing an additional 214,008 shares in the last quarter. Gamco Investors INC. ET AL acquired a new position in shares of Mercer International in the 2nd quarter valued at approximately $244,000. Finally, Quantbot Technologies LP increased its stake in Mercer International by 943.3% during the 1st quarter. Quantbot Technologies LP now owns 20,470 shares of the basic materials company's stock worth $126,000 after purchasing an additional 18,508 shares in the last quarter. Institutional investors and hedge funds own 85.79% of the company's stock.

Mercer International Company Profile

Mercer International Inc, together with its subsidiaries, manufactures and sells northern bleached softwood kraft (NBSK) and northern bleached hardwood kraft (NBHK) pulp worldwide. The company operates through two segments, Pulp and Solid Wood. It manufactures, sells, and distributes pulp, electricity, and chemicals through pulp mills.

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