Mercury General (NYSE:MCY) Downgraded to Hold Rating by Zacks Research

Key Points

• Zacks Research downgraded Mercury General (MCY) from a "strong‑buy" to a "hold" in a note to investors.
• Other analysts are mixed—Weiss Ratings remains "buy" and Wall Street Zen upgraded to "strong‑buy"—but MarketBeat shows a consensus "Buy" rating with a $100.00 price target.
• Mercury beat expectations with EPS of $3.66 (vs. $2.56 est.) and $1.54B revenue for the quarter, reporting ROE of 20.74% and a net margin of 9.03%; the stock trades near its 52‑week high (~$98) with a P/E around 10.05.

Mercury General (NYSE:MCY - Get Free Report) was downgraded by analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a note issued to investors on Monday,Zacks.com reports.

Several other research firms have also recently commented on MCY. Weiss Ratings restated a "buy (b-)" rating on shares of Mercury General in a research report on Thursday, January 22nd. Wall Street Zen upgraded Mercury General from a "buy" rating to a "strong-buy" rating in a research report on Saturday, February 21st. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat.com, Mercury General has a consensus rating of "Buy" and a consensus price target of $100.00.

Mercury General Stock Performance

NYSE:MCY opened at $98.20 on Monday. The company has a debt-to-equity ratio of 0.24, a quick ratio of 0.42 and a current ratio of 0.42. Mercury General has a 52-week low of $54.00 and a 52-week high of $100.06. The firm has a market cap of $5.44 billion, a price-to-earnings ratio of 10.05 and a beta of 0.91. The business's fifty day moving average is $90.53 and its 200 day moving average is $89.20.

Mercury General (NYSE:MCY - Get Free Report) last released its quarterly earnings data on Tuesday, February 17th. The insurance provider reported $3.66 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.56 by $1.10. Mercury General had a return on equity of 20.74% and a net margin of 9.03%.The company had revenue of $1.54 billion for the quarter, compared to analyst estimates of $1.37 billion. Research analysts predict that Mercury General will post 9 EPS for the current year.

Hedge Funds Weigh In On Mercury General

Hedge funds and other institutional investors have recently modified their holdings of the company. LSV Asset Management purchased a new position in shares of Mercury General in the 3rd quarter worth about $4,722,000. Versor Investments LP purchased a new position in shares of Mercury General in the 3rd quarter worth about $1,051,000. Ritholtz Wealth Management boosted its holdings in shares of Mercury General by 579.7% in the 4th quarter. Ritholtz Wealth Management now owns 25,523 shares of the insurance provider's stock worth $2,401,000 after purchasing an additional 21,768 shares in the last quarter. Public Sector Pension Investment Board boosted its holdings in shares of Mercury General by 14.6% in the 3rd quarter. Public Sector Pension Investment Board now owns 103,730 shares of the insurance provider's stock worth $8,794,000 after purchasing an additional 13,208 shares in the last quarter. Finally, SG Americas Securities LLC purchased a new position in shares of Mercury General in the 3rd quarter worth about $1,548,000. 42.39% of the stock is currently owned by hedge funds and other institutional investors.

About Mercury General

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.