Mercury General (NYSE:MCY) Shares Gap Down - What's Next?

Key Points

• Mercury General shares gapped down at the open, falling from a prior close of $107.78 to $105.01 and last trading around $103.05.
• Despite the pullback, analysts remain upbeat: Mercury General has an average “Strong Buy” rating, with a consensus price target of $100.
• The company recently posted better-than-expected earnings, reporting $3.50 EPS versus $2.15 expected, while also paying a quarterly dividend that annualizes to a 1.2% yield.

Mercury General Corporation (NYSE:MCY - Get Free Report)'s share price gapped down prior to trading on Wednesday . The stock had previously closed at $107.78, but opened at $105.01. Mercury General shares last traded at $103.0480, with a volume of 52,208 shares changing hands.

Analysts Set New Price Targets

MCY has been the topic of a number of research reports. Zacks Research upgraded shares of Mercury General from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, May 26th. Wall Street Zen raised shares of Mercury General from a "buy" rating to a "strong-buy" rating in a report on Saturday, July 4th. Finally, Weiss Ratings restated a "buy (b)" rating on shares of Mercury General in a research report on Thursday, June 4th. Two research analysts have rated the stock with a Strong Buy rating and one has given a Buy rating to the company's stock. Based on data from MarketBeat.com, Mercury General currently has an average rating of "Strong Buy" and a consensus price target of $100.00.

Mercury General Stock Performance

The stock has a 50-day moving average of $102.84 and a 200 day moving average of $95.11. The company has a debt-to-equity ratio of 0.22, a current ratio of 0.44 and a quick ratio of 0.44. The stock has a market capitalization of $5.85 billion, a price-to-earnings ratio of 6.97 and a beta of 0.89.

Mercury General (NYSE:MCY - Get Free Report) last released its earnings results 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. The company had revenue of $1.54 billion for the quarter, compared to the consensus estimate of $1.46 billion. Mercury General had a net margin of 13.68% and a return on equity of 32.94%. On average, analysts expect that Mercury General Corporation will post 11.5 EPS for the current year.

Mercury General Announces Dividend

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

Institutional Trading of Mercury General

A number of institutional investors have recently bought and sold shares of the business. Financial Management Professionals Inc. acquired a new position in shares of Mercury General in the 4th quarter valued at $25,000. Hilton Head Capital Partners LLC acquired a new stake in shares of Mercury General during the fourth quarter worth $38,000. Mcguire Capital Advisors Inc. bought a new stake in Mercury General in the fourth quarter valued at about $40,000. IFP Advisors Inc increased its holdings in Mercury General by 79.4% in the fourth quarter. IFP Advisors Inc now owns 506 shares of the insurance provider's stock valued at $48,000 after purchasing an additional 224 shares during the last quarter. Finally, GAMMA Investing LLC lifted its stake in Mercury General by 19.2% in the fourth quarter. GAMMA Investing LLC now owns 752 shares of the insurance provider's stock valued at $71,000 after buying an additional 121 shares during the period. Institutional investors and hedge funds 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.

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.