Mercury General (NYSE:MCY) Hits New 52-Week High - Time to Buy?

Key Points

• Mercury General Corporation (NYSE:MCY) reached a new 52-week high of $87.67, indicating bullish market sentiment for the stock.
• Analysts generally have favorable views, with ratings of "buy" and "strong-buy," including a revised price target of $100.00 from Raymond James Financial.
• The company reported earnings of $2.67 per share, significantly surpassing analysts' expectations, and announced a quarterly dividend of $0.3175 per share.

Shares of Mercury General Corporation (NYSE:MCY - Get Free Report) reached a new 52-week high during mid-day trading on Monday . The company traded as high as $87.67 and last traded at $86.79, with a volume of 14797 shares. The stock had previously closed at $86.93.

Analysts Set New Price Targets

Several analysts recently commented on MCY shares. Wall Street Zen raised Mercury General from a "hold" rating to a "buy" rating in a report on Saturday, August 2nd. Weiss Ratings reissued a "buy (b-)" rating on shares of Mercury General in a research report on Saturday, September 27th. Finally, Raymond James Financial reaffirmed a "strong-buy" rating and set a $100.00 price target (up previously from $90.00) on shares of Mercury General in a research report on Monday, September 22nd. One research analyst has rated the stock with a Strong Buy rating and one has issued a Buy rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Strong Buy" and an average price target of $100.00.

Mercury General Price Performance

The company has a quick ratio of 0.43, a current ratio of 0.43 and a debt-to-equity ratio of 0.29. The stock has a market cap of $4.80 billion, a P/E ratio of 12.32 and a beta of 0.98. The firm has a 50 day moving average price of $76.80 and a 200 day moving average price of $66.32.

Mercury General (NYSE:MCY - Get Free Report) last announced its quarterly earnings data on Tuesday, July 29th. The insurance provider reported $2.67 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.10) by $2.77. Mercury General had a return on equity of 16.61% and a net margin of 6.76%.The company had revenue of $1.48 billion during the quarter, compared to the consensus estimate of $1.45 billion. On average, analysts forecast that Mercury General Corporation will post -0.5 EPS for the current fiscal year.

Mercury General Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 25th. Stockholders of record on Thursday, September 11th were given a dividend of $0.3175 per share. This represents a $1.27 annualized dividend and a dividend yield of 1.5%. The ex-dividend date was Thursday, September 11th. Mercury General's dividend payout ratio (DPR) is presently 18.04%.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the company. Franklin Resources Inc. increased its stake in Mercury General by 3.0% in the 2nd quarter. Franklin Resources Inc. now owns 5,233 shares of the insurance provider's stock worth $352,000 after buying an additional 154 shares in the last quarter. Bridgeway Capital Management LLC boosted its stake in shares of Mercury General by 0.3% in the first quarter. Bridgeway Capital Management LLC now owns 49,809 shares of the insurance provider's stock worth $2,784,000 after acquiring an additional 161 shares during the period. Inspire Investing LLC grew its position in shares of Mercury General by 2.7% during the first quarter. Inspire Investing LLC now owns 6,158 shares of the insurance provider's stock worth $344,000 after purchasing an additional 162 shares in the last quarter. Empowered Funds LLC grew its position 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 in the last quarter. Finally, Commonwealth of Pennsylvania Public School Empls Retrmt SYS raised its stake in Mercury General by 7.3% during the 2nd quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 6,826 shares of the insurance provider's stock valued at $460,000 after purchasing an additional 464 shares during the period. Institutional investors own 42.39% of the company's stock.

About Mercury General

Mercury General Corporation, together with its subsidiaries, engages in writing personal automobile insurance in the United States. The company also writes homeowners, commercial automobile, commercial property, mechanical protection, and umbrella insurance products. Its automobile insurance products include collision, property damage, bodily injury, comprehensive, personal injury protection, underinsured and uninsured motorist, and other hazards; and homeowners insurance products comprise dwelling, liability, personal property, and other coverages.

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