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

Key Points

• Price breakout: Mercury General shares crossed above their 200-day moving average (200‑day MA $88.01), trading as high as $93.25 and last at $92.96, up about 3.1% on the session.
• Analyst sentiment: Multiple upgrades (including Wall Street Zen and Zacks) leave the stock with an average rating of "Strong Buy" and an average price target of $100.00.
• Fundamentals & payout: The company beat quarterly estimates (EPS $3.66 vs $2.56 est.; revenue $1.54B vs $1.37B), has a market cap of $5.15B and P/E of 9.52, and paid a $0.3175 quarterly dividend ($1.27 annualized, 1.4% yield).

Mercury General Corporation (NYSE:MCY - Get Free Report)'s share price crossed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $88.01 and traded as high as $93.25. Mercury General shares last traded at $92.9620, with a volume of 242,004 shares traded.

Analyst Upgrades and Downgrades

Several research analysts 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 report on Saturday, February 21st. Weiss Ratings restated a "buy (b-)" rating on shares of Mercury General in a report on Thursday, January 22nd. Finally, Zacks Research upgraded shares of Mercury General from a "hold" rating to a "strong-buy" rating in a report on Thursday, February 26th. Two research analysts have rated the stock with a Strong Buy rating and one has issued 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 an average price target of $100.00.

Mercury General Trading Up 3.1%

The firm's 50-day moving average price is $89.65 and its 200-day moving average price is $88.01. The company has a quick ratio of 0.42, a current ratio of 0.42 and a debt-to-equity ratio of 0.24. The company has a market cap of $5.15 billion, a P/E ratio of 9.52 and a beta of 0.91.

Mercury General (NYSE:MCY - Get Free Report) last posted its quarterly earnings results on Tuesday, February 17th. The insurance provider reported $3.66 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.56 by $1.10. The company had revenue of $1.54 billion for the quarter, compared to analyst estimates of $1.37 billion. Mercury General had a net margin of 9.03% and a return on equity of 20.74%. As a group, equities research analysts expect that Mercury General Corporation will post -0.5 earnings per share for the current fiscal year.

Mercury General Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, March 26th. Investors of record on Thursday, March 12th were issued a dividend of $0.3175 per share. The ex-dividend date of this dividend was Thursday, March 12th. This represents a $1.27 annualized dividend and a dividend yield of 1.4%. Mercury General's dividend payout ratio (DPR) is currently 13.00%.

Hedge Funds Weigh In On Mercury General

Several institutional investors and hedge funds have recently made changes to their positions in MCY. Financial Management Professionals Inc. purchased a new stake in Mercury General during the 4th quarter valued at $25,000. Aster Capital Management DIFC Ltd purchased a new stake in Mercury General during the 3rd quarter valued at $34,000. Jones Financial Companies Lllp boosted its position in Mercury General by 236.0% during the 3rd quarter. Jones Financial Companies Lllp now owns 457 shares of the insurance provider's stock valued at $38,000 after buying an additional 321 shares during the period. Hilton Head Capital Partners LLC purchased a new stake in Mercury General during the 4th quarter valued at $38,000. Finally, Mcguire Capital Advisors Inc. purchased a new stake in Mercury General during the 4th quarter valued at $40,000. 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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