Mercury General (NYSE:MCY) Announces Quarterly Earnings Results

Key Points

• Mercury General exceeded quarterly expectations, reporting EPS of $3.52 versus the $2.53 consensus estimate and revenue of $1.68 billion compared with $1.52 billion expected.
• The insurer posted a 13.68% net margin and 32.94% return on equity, while its shares traded at $106.28 with a market capitalization of approximately $5.89 billion.
• Analyst sentiment remains broadly positive, with a consensus “Buy” rating despite one recent downgrade to “Hold”; the average price target is $100.

Mercury General (NYSE:MCY - Get Free Report) posted its quarterly earnings data on Tuesday. The insurance provider reported $3.52 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.53 by $0.99, FiscalAI reports. The company had revenue of $1.68 billion for the quarter, compared to the consensus estimate of $1.52 billion. Mercury General had a net margin of 13.68% and a return on equity of 32.94%.

Mercury General Price Performance

MCY stock traded down $0.98 during trading on Tuesday, hitting $106.28. 470,704 shares of the stock traded hands, compared to its average volume of 268,169. The stock has a market cap of $5.89 billion, a price-to-earnings ratio of 7.01 and a beta of 0.90. Mercury General has a one year low of $69.82 and a one year high of $113.06. The company has a current ratio of 0.44, a quick ratio of 0.44 and a debt-to-equity ratio of 0.22. The company has a 50 day simple moving average of $104.71 and a 200 day simple moving average of $96.58.

Institutional Trading of Mercury General

Several hedge funds have recently modified their holdings of MCY. Mercer Global Advisors Inc. ADV boosted its holdings in shares of Mercury General by 3.3% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 5,473 shares of the insurance provider's stock worth $515,000 after acquiring an additional 173 shares during the period. Empowered Funds LLC increased its stake in shares of Mercury General by 1.7% during the first quarter. Empowered Funds LLC now owns 10,923 shares of the insurance provider's stock worth $611,000 after purchasing an additional 185 shares during the period. Cetera Investment Advisers increased its position in Mercury General by 3.9% during the 4th quarter. Cetera Investment Advisers now owns 5,172 shares of the insurance provider's stock worth $486,000 after buying an additional 195 shares during the period. Franklin Resources Inc. lifted its holdings in shares of Mercury General by 8.4% during the fourth quarter. Franklin Resources Inc. now owns 3,826 shares of the insurance provider's stock worth $360,000 after buying an additional 295 shares in the last quarter. Finally, Mcguire Capital Advisors Inc. bought a new stake in shares of Mercury General in the fourth quarter valued at about $40,000. Institutional investors and hedge funds own 42.39% of the company's stock.

Analysts Set New Price Targets

Several analysts have recently weighed in on MCY shares. 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. Zacks Research cut shares of Mercury General from a "strong-buy" rating to a "hold" rating in a research note on Friday, July 17th. Finally, Weiss Ratings reaffirmed a "buy (b)" rating on shares of Mercury General in a report on Thursday, June 4th. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Buy" and a consensus target price of $100.00.

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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