Mercer International Inc. (NASDAQ:MERC) Short Interest Up 67.5% in August

Key Points

• Mercer International Inc. experienced a significant increase in short interest, rising 67.5% to 1,960,000 shares by August 15, indicating heightened bearish sentiment.
• The company reported a disappointing earnings result with an EPS of ($1.29), missing estimates by ($0.56), alongside revenue that fell short of expectations at $453.52 million.
• Insider activity shows confidence, with CEO Juan Carlos Bueno purchasing 8,000 shares at $3.77 and major shareholder Peter R. Kellogg acquiring 760,000 shares at an average price of $3.25.

Mercer International Inc. (NASDAQ:MERC - Get Free Report) TSE: MRI.U was the target of a significant increase in short interest in August. As of August 15th, there was short interest totaling 1,960,000 shares, an increase of 67.5% from the July 31st total of 1,170,000 shares. Currently, 5.3% of the shares of the stock are sold short. Based on an average daily volume of 797,700 shares, the short-interest ratio is presently 2.5 days. Based on an average daily volume of 797,700 shares, the short-interest ratio is presently 2.5 days. Currently, 5.3% of the shares of the stock are sold short.

Analyst Ratings Changes

Several equities research analysts have issued reports on MERC shares. TD Securities lowered their target price on shares of Mercer International from $3.50 to $3.00 and set a "hold" rating on the stock in a research note 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 on the stock in a research note on Tuesday, July 22nd. Four equities research analysts have rated the stock with a Hold rating, Based on data from MarketBeat, Mercer International currently has a consensus rating of "Hold" and an average target price of $4.25.

Mercer International Trading Up 2.3%

Mercer International stock traded up $0.07 during midday trading on Thursday, hitting $3.12. 468,550 shares of the stock were exchanged, compared to its average volume of 561,432. The company has a current ratio of 3.10, a quick ratio of 1.73 and a debt-to-equity ratio of 3.42. The stock's 50-day simple moving average is $3.38 and its 200 day simple moving average is $4.35. Mercer International has a fifty-two week low of $2.59 and a fifty-two week high of $8.28. The stock has a market capitalization of $208.98 million, a price-to-earnings ratio of -1.91 and a beta of 1.05.

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 for the quarter, missing the consensus estimate of ($0.73) by ($0.56). The firm had revenue of $453.52 million during the quarter, compared to analysts' expectations of $514.46 million. Mercer International had a negative net margin of 5.60% and a negative return on equity of 23.88%. On average, equities analysts anticipate that Mercer International will post -0.29 EPS for the current year.

Insider Activity

In other news, major shareholder Peter R. Kellogg purchased 760,000 shares of the stock in a transaction dated Tuesday, July 22nd. The shares were purchased at an average cost of $3.25 per share, with a total value of $2,470,000.00. Following the completion of the purchase, the insider directly owned 2,300,000 shares of the company's stock, valued at approximately $7,475,000. The trade was a 49.35% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, Director Linda J. Welty purchased 10,000 shares of the company's stock in a transaction that occurred on Monday, August 18th. The shares were purchased at an average price of $3.09 per share, with a total value of $30,900.00. Following the completion of the transaction, the director directly owned 36,290 shares of the company's stock, valued at $112,136.10. This represents a 38.04% increase in their position. The disclosure for this purchase can be found here. In the last quarter, insiders bought 772,000 shares of company stock worth $2,506,880. Company insiders own 1.00% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Quantbot Technologies LP raised its position in Mercer International by 943.3% in the first quarter. Quantbot Technologies LP now owns 20,470 shares of the basic materials company's stock valued at $126,000 after purchasing an additional 18,508 shares during the period. Gamco Investors INC. ET AL purchased a new position in shares of Mercer International during the 2nd quarter worth $244,000. Jump Financial LLC increased its position 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 worth $969,000 after purchasing an additional 214,008 shares during the last quarter. Finally, Gabelli Funds LLC purchased a new stake in Mercer International in the 2nd quarter valued at about $1,804,000. 85.79% of the stock is currently owned by hedge funds and other institutional investors.

About Mercer International

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.