Mercury General (NYSE:MCY) Share Price Passes Above 200-Day Moving Average - Here's Why

Key Points

• Mercury General shares moved above their 200-day moving average, trading as high as $104.97 and last changing hands near $102.67. The move suggests improved near-term momentum for the stock.
• Analyst sentiment is mixed but generally positive, with Wall Street Zen upgrading MCY to strong-buy while Zacks cut it to hold. MarketBeat data shows an average rating of Buy and a $100 target price.
• The company posted strong quarterly results, including EPS of $3.50 versus the $2.15 estimate and revenue of $1.54 billion versus expectations of $1.46 billion. Mercury General also paid a quarterly dividend of $0.3175 per share, implying a 1.2% yield.

Mercury General Corporation (NYSE:MCY - Get Free Report)'s share price passed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $95.59 and traded as high as $104.97. Mercury General shares last traded at $102.6740, with a volume of 348,065 shares.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on MCY. Wall Street Zen upgraded Mercury General from a "buy" rating to a "strong-buy" rating in a research report on Saturday, July 4th. Weiss Ratings reiterated a "buy (b)" rating on shares of Mercury General in a report on Thursday, June 4th. Finally, Zacks Research lowered shares of Mercury General from a "strong-buy" rating to a "hold" rating in a research report on Friday, July 17th. One equities research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and one has given a Hold rating to the company's stock. Based on data from MarketBeat.com, Mercury General has an average rating of "Buy" and an average target price of $100.00.

Mercury General Price Performance

The company has a quick ratio of 0.44, a current ratio of 0.44 and a debt-to-equity ratio of 0.22. The firm has a market capitalization of $5.69 billion, a price-to-earnings ratio of 6.77 and a beta of 0.89. The stock's 50 day moving average price is $103.63 and its two-hundred day moving average price is $95.59.

Mercury General (NYSE:MCY - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The insurance provider reported $3.50 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.15 by $1.35. Mercury General had a return on equity of 32.94% and a net margin of 13.68%.The firm had revenue of $1.54 billion during the quarter, compared to analysts' expectations of $1.46 billion. Analysts anticipate that Mercury General Corporation will post 11.5 EPS for the current fiscal year.

Mercury General Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, June 25th. Stockholders of record on Thursday, June 11th were issued a dividend of $0.3175 per share. This represents a $1.27 annualized dividend and a dividend yield of 1.2%. The ex-dividend date was Thursday, June 11th. Mercury General's payout ratio is currently 8.37%.

Hedge Funds Weigh In On Mercury General

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Royal Bank of Canada grew its position in Mercury General by 58.8% in the first quarter. Royal Bank of Canada now owns 54,312 shares of the insurance provider's stock worth $3,036,000 after acquiring an additional 20,115 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in shares of Mercury General by 4.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 15,935 shares of the insurance provider's stock valued at $891,000 after purchasing an additional 702 shares in the last quarter. Millennium Management LLC lifted its stake in shares of Mercury General by 8.5% in the 1st quarter. Millennium Management LLC now owns 111,327 shares of the insurance provider's stock valued at $6,223,000 after purchasing an additional 8,742 shares during the last quarter. Empowered Funds LLC lifted its stake in shares of Mercury General by 1.7% in the 1st quarter. Empowered Funds LLC now owns 10,923 shares of the insurance provider's stock valued at $611,000 after purchasing an additional 185 shares during the last quarter. Finally, EverSource Wealth Advisors LLC boosted its holdings in Mercury General by 194.2% in the second quarter. EverSource Wealth Advisors LLC now owns 1,209 shares of the insurance provider's stock worth $81,000 after purchasing an additional 798 shares in the last quarter. Institutional investors own 42.39% of the company's stock.

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.

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