Mercer International (NASDAQ:MERC) Given "Sell (D-)" Rating at Weiss Ratings

Key Points

• Weiss Ratings has reaffirmed a "Sell (D-)" rating on Mercer International (NASDAQ:MERC), indicating continued skepticism regarding the company's stock performance.
• Mercer International reported a significant earnings miss with a loss of $1.29 EPS for the last quarter, compared to the consensus estimate of a loss of $0.73.
• Insider activity shows increased confidence, with Directors purchasing significant shares, including 10,000 shares by Director Linda J. Welty and 760,000 shares by major shareholder Peter R. Kellogg.

Mercer International (NASDAQ:MERC - Get Free Report) TSE: MRI.U's stock had its "sell (d-)" rating reaffirmed by stock analysts at Weiss Ratings in a research report issued to clients and investors on Wednesday,Weiss Ratings reports.

A number of other brokerages also recently issued reports on MERC. CIBC reduced their price target on Mercer International from $5.00 to $4.00 and set a "neutral" rating on the stock in a report on Tuesday, July 22nd. TD Securities decreased their target price on shares of Mercer International from $3.50 to $3.00 and set a "hold" rating for the company in a research note on Tuesday, August 5th. Four investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Reduce" and an average price target of $4.25.

Mercer International Stock Up 0.4%

Shares of Mercer International stock opened at $2.85 on Wednesday. The stock's 50-day moving average is $3.06 and its 200 day moving average is $3.81. Mercer International has a one year low of $2.59 and a one year high of $8.28. The company has a debt-to-equity ratio of 3.42, a current ratio of 3.10 and a quick ratio of 1.73. The firm has a market cap of $190.89 million, a price-to-earnings ratio of -1.75 and a beta of 0.96.

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

Insider Activity

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

Hedge Funds Weigh In On Mercer International

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in MERC. Quantbot Technologies LP grew its holdings 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 acquired a new stake in shares of Mercer International in the 2nd quarter worth about $244,000. Jump Financial LLC grew its position in Mercer International by 340.6% in the 2nd quarter. Jump Financial LLC now owns 276,837 shares of the basic materials company's stock valued at $969,000 after buying an additional 214,008 shares in the last quarter. Finally, Gabelli Funds LLC bought a new position in shares of Mercer International during the 2nd quarter valued at about $1,804,000. Institutional investors and hedge funds own 85.79% of the company's stock.

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.

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